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Sweepstakes Casinos in Maryland

Stakester's Take

Maryland's sweepstakes casino landscape collapsed not because of successful legislation, but due to aggressive regulatory enforcement. Senate Bill 860 passed the Senate unanimously but died in the House when the 2025 legislative session ended in April. Most major operators, including Stake.us, McLuck, and Hello Millions, have voluntarily exited the state ahead of anticipated legislation.

Despite the crackdown, a few sweepstakes casinos still serve Maryland players. These platforms stand out for their game selection, bonus offers, and straightforward redemption processes.

Maryland Sweepstakes Casinos Bonus Best For
Crown Coins 2SC + 100K Crown Coins Fast Redemptions
 Pulsz 500 GC + 2.5 SC Jackpots
RealPrize 2SC + 100K Coins Live Dealer
High 5 Casino 600 Diamonds + 5SC + 250 Gold Coins Exclusive Games
Thrillz 3 Thrillzz Sweeps + 3,000 Thrillzz Coins Sports fans, mobile users

While sweepstakes casinos remain technically legal in Maryland, regulatory hostility has created a de facto ban through enforcement pressure.

Maryland’s Sweepstakes Casino Laws: Legal Status Explained

Sweepstakes casinos operate in a legal gray area in Maryland. While there is no explicit statutory ban, the Maryland Lottery and Gaming Control Agency (MLGCA) has issued cease-and-desist letters to most major operators, accusing them of illegal gambling activity.

  • Senate Bill 860 (2025) sought to ban sweepstakes casinos using a dual-currency model, criminalizing not only operators but also suppliers and affiliates. The bill passed the Senate unanimously but failed to advance in the House before the legislative session ended, so it is not law.
  • Practical effect: With no new law, the MLGCA is using enforcement actions to push out sweepstakes casinos. Many leading brands have exited Maryland or blocked new players from the state.

Broader Online Casino and Gambling Restrictions

  1. No legal online casinos: Maryland does not allow real-money online casino gaming.
  2. Online sports betting: Legal and regulated.
  3. Land-based casinos: Six fully legal, regulated casinos plus one riverboat.

Maryland’s Gambling Regulator

The Maryland Lottery and Gaming Control Agency (MLGCA) oversees all gambling activities in the state. Founded in 1973, the MLGCA has recently taken a hardline stance against unlicensed online gambling, including sweepstakes casinos, and has issued multiple cease-and-desist letters to operators in 2024 and 2025.

Responsible Gambling

Maryland requires all gambling operators to provide responsible gambling tools including:

  • Reality checks and session time limits
  • Deposit limits and loss limits
  • Self-exclusion programs
  • Links to problem gambling resources

The Maryland Center of Excellence on Problem Gambling provides treatment and support services. The state gambling helpline (1-800-GAMBLER) offers 24/7 assistance.

Sweepstakes Casino Tax Requirements

All gambling winnings, including sweepstakes prizes, are taxable.

  • Residents: Winnings over $5,000 are subject to 8.75% state withholding, plus federal taxes.
  • Nonresidents: 7.00% state withholding.
  • Winnings over $500: If taxes weren’t withheld, you must file Form 502D and pay within 60 days.
  • Redemptions: Any cash or gift card redemption from sweepstakes casinos counts as taxable income.
Amount Resident Non-Resident Required Forms
$500+ None None 502D
$5000+ 8.75% 7% 502D, W-2G

Latest Maryland Regulatory Changes Affecting Sweepstakes Gaming

Maryland's sweepstakes casino crackdown succeeded through enforcement, not legislation:

  • April 2025: Legislative session ends with SB 860 dying in House - no sweepstakes ban passed
  • March 2025: Senate passes SB 860 unanimously (47-0), but the House never votes.  VGW Holdings (Chumba Casino, LuckyLand Slots) receives cease-and-desist order. High 5 Casino complies with the regulatory order and exits Maryland
  • February 2025: McLuck, Hello Millions, Jackpota, Mega Bonanza, and Spree voluntarily exit
  • January 2025: SB 860 was introduced to prohibit sweepstakes casinos
  • 2024-2025: Maryland regulator issues multiple waves of cease-and-desist letters

Regulatory pressure achieved what failed legislation couldn't, clearing most operators from Maryland through voluntary exits rather than legal bans.

FAQs About Maryland Sweepstakes Casinos

Yes, technically. Legislation to ban them (SB 860) failed when the House didn't vote before the 2025 session ended in April. However, aggressive regulatory enforcement has created a hostile environment that most operators avoid.

Real Prize and Crown Coins reportedly still accept Maryland players, but most major brands, including Stake.us, McLuck, Chumba Casino, and LuckyLand Slots have voluntarily exited due to regulatory pressure.

Players face no legal penalties. The regulatory pressure targets operators, not players. However, operators may suddenly exit without notice due to cease-and-desist letters, which could potentially affect account balances.

Possibly in future legislative sessions. The unanimous Senate support (47-0) suggests strong political will, but the House's failure to act indicates the issue isn't a top priority.

Yes, sweepstakes casinos that offer no cash redemption remain legal. The regulatory pressure specifically targets sweepstakes models that offer pathways to real money prizes.

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