Maryland Lawmakers Try Again to Close Down Sweepstakes Casinos
Summary
Maryland lawmakers have reintroduced twin bills (House Bill 295 and Senate Bill 112) aimed at banning interactive sweepstakes casinos that use dual-currency systems allowing players to convert digital credits into cash or prizes. Filed on 14 January at the governor’s request and driven by the Maryland Lottery and Gaming Control Agency, the proposals would make operating or advertising such platforms a criminal offence, with fines between $10,000 and $100,000 and possible prison terms of up to three years.
The bills also tighten licence rules: applicants and current licence holders must disclose financial, technological and commercial ties to sweepstakes-like gaming businesses, and regulators could deny or revoke licences where operators have links to unlicensed interactive gaming or high-risk jurisdictions. The move follows a growing national crackdown — including bans in California and New York and enforcement actions in Tennessee and Louisiana — and is likely to face pushback from industry groups who argue the wording may sweep up legitimate promotions.
Key Points
- Two matching bills (HB 295 and SB 112) were filed on 14 January to ban interactive sweepstakes casinos in Maryland.
- The proposals would criminalise offering or advertising such platforms, with fines of $10,000–$100,000 and up to three years’ imprisonment.
- Stricter licence conditions require disclosure of any financial, technical or business ties to sweepstakes-like operators; regulators can deny or cancel licences for risky links.
- Maryland’s effort is part of a wider US trend — recent bans or strong enforcement in states such as California, New York, Tennessee and Louisiana.
- The industry is expected to push back, warning that broad wording could affect legitimate promotional activity and urging regulation rather than an outright ban.
Context and relevance
This is a significant development for the gambling and marketing sectors: it signals that state regulators are increasingly unwilling to tolerate gray‑market dual‑currency sweepstakes models. Operators, affiliates and marketers with Maryland exposure should review business links, disclosures and promotional copy immediately. For policymakers and consumer protection advocates, the bills represent a hardening stance that mirrors multi‑state legal action and could influence other jurisdictions weighing similar measures.
Why should I read this?
If you work in gaming, marketing, compliance or run ads that touch US audiences — this matters. It’s not just another bill: fines, jail time and tougher licence checks could upend business models and force fast changes to how sweepstakes and social‑casino products are run or promoted. We’ve boiled the essentials down so you don’t have to wade through the legalese.