Two Bills To Ban Sweepstakes Casinos Clear Maryland House Unanimously, One Online Gaming Bill Stagnates

(AsiaGameHub) –   Maryland legislators have advanced two bills targeting sweepstakes casinos through the House, forwarding both to the Senate Budget and Taxation Committee. Concurrently, a distinct initiative to legalize online casinos stalled ahead of a crucial legislative deadline.

Good to Know

• HB 295 passed the House on March 20 by a 105 to 25 vote.
• HB 1226 passed on March 23 by a 134 to 2 vote.
• Maryland online casino bills did not advance before Crossover Day.

Maryland House Moves 2 Sweepstakes Casino Bills to Senate

Maryland has moved a step closer to prohibiting sweepstakes casinos. Both House Bill 295 and House Bill 1226 were approved by the House and are now directed to the Senate Budget and Taxation Committee.

HB 295 aims to establish a new criminal prohibition against what the legislation terms interactive games. This refers to online or mobile platforms utilizing multiple forms of currency that are convertible into prizes or cash equivalents while mimicking casino games, lottery offerings, or sports wagering. Games that provide only non-monetary prizes would remain exempt from the ban.

The legislation’s scope extends beyond just platform operators. It also applies to promoters and other individuals associated with such platforms. Potential penalties include fines from $10,000 to $100,000 and prison sentences of up to three years.

HB 295 progressed slowly before its floor vote. Following a February 5 hearing in the Ways and Means Committee, the bill was inactive for over a month. Legislators ultimately advanced it on March 19 after amending its enforcement provisions. During the floor discussion, some representatives expressed concerns about the wording potentially affecting free-to-play users.

The second piece of legislation, HB 1226, is designed to bolster enforcement capabilities. It would grant regulators expanded authority to issue cease-and-desist orders, block financial transactions and platform access, and seek both civil and criminal penalties against unlawful operators and their service providers.

Maryland’s General Assembly must still approve at least one of these bills before the session concludes. Should that occur, Maryland would become the eighth state to outlaw sweepstakes casinos, joining Indiana and six others.

While the anti-sweepstakes measures progressed, efforts to legalize online casinos faced setbacks. Two Senate bills intended to establish a regulatory framework for iGaming did not move forward before the General Assembly’s crossover deadline, halting that initiative for the time being.