Twin Bills Target Sweepstakes Operators
Maryland lawmakers have filed House Bill 295 and Senate Bill 112, companion measures that would criminalize the operation and promotion of sweepstakes casinos in the state. Both bills were introduced on January 14, 2026 at the governor's request, signaling executive-branch support for the prohibition effort.
The legislation is backed by the Maryland Lottery and Gaming Control Agency (MLGCA), which has been engaged in an ongoing enforcement campaign against sweepstakes platforms operating in the state. Since May 2024, the MLGCA has issued approximately 75 cease-and-desist letters to operators it considers to be conducting illegal activity.
Criminal Penalties and Enforcement Powers
HB 295 and SB 112 establish criminal penalties for operating, conducting, or promoting sweepstakes casinos in Maryland. Violations would be classified as misdemeanors carrying fines between $10,000 and $100,000, plus up to three years of imprisonment. All collected fines would be directed to the state's Problem Gambling Fund, linking enforcement directly to treatment and prevention resources.
The bills also introduce a disclosure requirement for gaming licensees. Any entity applying for or holding a gaming license in Maryland would be required to report business relationships with sweepstakes casino operators. The State Lottery and Gaming Control Commission (SLGCC) would have the authority to deny or revoke licenses for applicants with sweepstakes connections.
Reviving a Stalled Effort
The 2026 legislation revives an effort that stalled during the 2025 session. Last year, SB 0860 passed the Maryland Senate but its companion measure, HB 1140, died in the House. This time, the bills have been filed simultaneously in both chambers with the governor's backing, a strategic move designed to prevent the procedural bottleneck that killed the 2025 attempt.
The MLGCA's ongoing enforcement actions have also built momentum for the legislation. The agency's 75 cease-and-desist letters represent one of the most active state-level enforcement campaigns against sweepstakes casinos in the country, and regulators have argued that they need stronger statutory tools to effectively address the issue.
Broader Implications
Maryland's legislative push adds to the growing number of states moving to ban or restrict sweepstakes casinos. If enacted, the state would join New York, California, Montana, Connecticut, New Jersey, and Nevada in prohibiting the dual-currency model. Indiana's HB 1052, which is also advancing, could bring the total to eight or nine states with formal bans by mid-2026.
The disclosure requirement in Maryland's bills is particularly noteworthy. By requiring gaming licensees to report ties to sweepstakes operators, the legislation targets not just the platforms themselves but the broader ecosystem of companies that support them. This approach could serve as a model for other states seeking to cut off the supply chain that enables sweepstakes casino operations.
What to Watch
The Maryland General Assembly session typically ends in April. With both bills now advancing through their respective chambers, observers expect floor votes in the coming weeks. The governor's public support significantly increases the likelihood of passage, though the House remains the more uncertain chamber given its role in blocking the 2025 attempt.