Maryland Anti-Sweeps Casino Bills Set for Early March Hearing

Maryland is accelerating its anti-sweepstakes casinos push by releasing a new hearing schedule for its key legislations. HB1226 and SB652, prefiled early this year aims to ban gaming sites operating on the dual-currency model and recommend penalties for violators. 

The Maryland House has set early March hearings for the two bills: March 5th for the House version, and March 11th for its Senate counterpart. The Maryland General Assembly targets its submission to the governor's office this April, and a planned effectivity date on October 1st, 2026.

Maryland General Assembly Doubles Down on Sweeps Ban

HB1226, or the Maryland Illegal Online Gambling Enforcement Act, provides specific language on prohibition and regulatory actions. This bill explicitly prohibits certain persons from operating and promoting illegal gambling in the state, providing the Attorney General and certain attorneys the authority to issue notice, seek relief, and enforce the act. SB652 is the accompanying bill in the upper chamber and carries the same language and objectives.

• HB1226 current status: In the House; scheduled for hearing on March 5, at 1:00 pm.
• SB652: In the Senate, scheduled for March 11, at 1:00 pm.

Both bills prohibit operating, offering, engaging in, and promoting “illegal online gambling” in the state, defined as unlicensed wagers via online systems on casino games such as slots and table games. It specifically targets games that operate using the dual-currency system (such as Gold Coins and Sweeps Coins), which allows redemptions.

These bills also target sweepstakes casino affiliates and companies that openly support these activities, such as payment processors and web hosts.

Harsher Penalties Planned for Violators

Operators and owners face misdemeanor charges, with the first offense racking up to 3 years imprisonment and a $50,000 fine. Subsequent offenses carry another 3-year sentence and/or $100,000 fine, and each promotion or wager is a separate violation. Supporters, such as affiliates, also face costly consequences- up to $25,000 as civil fines for first violation, and $50,000 for subsequent violations.

Legislators have also lined up possible asset forfeiture, license revocation, and site blocks.

What to Expect from the Scheduled Early March Hearings

The House hearing is scheduled on March 5th at 1 pm, focusing on the different provisions banning illegal gambling, including sites that use the dual-currency model. 

The Senate Budget and Taxation Committee hearing will happen on March 11th, in the West Miller Senate Building, Room 3, Annapolis. It will also cover other related bills, including SB761, in the voter referendum for online casino and poker expansion.

Committees are expected to review the testimonies, potentially exploring some amendments before voting on the bills.

If passed, these bills would move to the next chamber for further review and may potentially reach the floor by April. Supporters are looking at early May as the possible date of submission for the governor’s approval.

REFERENCES

• HB1226
• SB652