Maryland Legislature Targets Sweepstakes Casinos in New Ban Proposals

The growing movement to stop sweepstakes casino games has arrived in Maryland. This comes after the state’s Senate Budget and Tax Committee has pre-filed Senate Bill 112, which aims to ban “certain interactive games”. 

Then, there’s House Bill 295, which was filed with the House Ways and Means Committee. Both legislations share the same language and objective: to define interactive games as those available online and relying on a multiple-currency system, and to simulate casino-style gaming.

Once approved, interactive games will be banned, and violators will face a criminal misdemeanor, with penalties including up to 3 years' imprisonment and fines between $10k and $100k.

SB 112 and HB 295 Share the Same Language — But Why?

Currently, Maryland has two active bills that target sweepstakes casinos: SB 112 and HB 295. The former has been pre-filed by the Budget and Tax Committee in the Senate, and the latter, with the House. 

Both share the same language to give the state broader authority to regulate and penalize sweepstakes casino operators and related activities. Here are the objectives, as detailed in the document:

• Define and ban interactive games. SB 112 and HB 295 define interactive games as those that operate on multiple currencies model, and simulate casino-style gameplay and even sports wagering.

• Provides criminal penalties. Violators could face a criminal misdemeanor, with specific penalties of up to 3 years in prison and fees between $10k and $100k.

• License restrictions. The Maryland Lottery and Gaming Control Commission has the authority to refuse or cancel licenses.

This approach could affect not just operators but also service providers that support sweepstakes gaming, even if that activity occurs outside Maryland

Maryland Joins a Growing List of States Banning Sweepstakes Casinos

Maryland’s latest legislative action puts in the growing list of states that have introduced bans on sweepstakes for this year. Just recently, Virginia filed HB 161, while Maine, Indiana, Florida, and Mississippi also introduced similar legislation.

In Indiana, the plan to ban is up for debate. Indiana Representative Jim Lucas shared that he’s “100% against an outright ban”, giving hope to industry stakeholders.

As the legislative sessions in most states start this month, we can look forward to more debates on the popular sweepstakes casino model. What happens in January could very well spell the short-term future of the industry.

REFERENCES

• SB 112 and HB 295