MLGCA Backs Maryland Sweepstakes Bill as Momentum Builds

The Maryland Senate recently completed a hearing for Senate Bill 652 or the “Maryland Illegal Online Gambling Enforcement Act” last March 11th, however no action, a vote or referral was made. Introduced by Senators Jeff Waldstreicher and Chris West, with the backing of Maryland Lottery and Gaming Control Agency (MLGCA), the bill aims to create a comprehensive framework to address illegal gambling and also targets sweepstakes casinos.

MLGCA is one of the bill’s main backers, and has already filed a letter of support to boost the campaign against unregulated gaming sites. Also, the agency's  Director John Martin, signed cease-and-desist letters to 11 sweepstakes and offshore gambling sites,  worked with the state’s Attorney General, and met with lawmakers on the dangers of illegal gambling.

A Closer Look at Maryland’s SB652

Senate Bill 652 or the Maryland Illegal Online Gambling Enforcement Act filed by Sens. Waldstreicher and Westtarget unlicensed gambling platforms, including sweepstakes casinos. This legislation bans any person from operating, offering, or promoting illegal gaming in the state. It also prohibits knowingly supporting these activities, whether directly or indirectly, covering the potential participation of banks and internet service providers. Before its filing, the MLGCA already issued letters requiring these sites to block players’ access.

The bill outlines the role of the state’s Attorney General (OAG), local prosecutors, and the State Lottery and Gaming Control Commission (SLGCC). It empowers the Attorney General or local prosecutors to issue letters, seek preliminary inujuctions, freeze accounts, or pursue court relief to stop the sites’ operations.

The SLGCC is also empowered to revoke or deny licenses for non-compliance. All violations fall under the state’s Consumer Protection Act as unfair trade practices, with fines of up to $50k on the first offense, and $100k for subsequent violations.

MLGCA Offers Continued Support

If passed, this law equips MLGCA greater authority to issue letters, seek injunctions, freeze accounts, and impose fines. The state’s attorney general will also assume a bigger role, giving the office a wider authority to investigate third-party vendors, including payment processors.

MLGCA has issued 89 letters to unregulated gaming operators, including VGW, the owners and operator of LuckyLand and Chumba Casino.

According to Jennifer Beskid, the MLGCA Director of legislation & policy, the agency boasts a 25% success rate in shutting down illegal gaming sites. And if this bill passes, this will expand the agency’s enforcement actions against unlicensed operators.

REFERENCES

• SB652