Maryland Bill Wants to Stop Sweepstakes Casinos, Brings Tough Punishments

A new law proposal in Maryland tries to ban online sweepstakes casinos and set harsh punishments for providers and partners who help run them. Senator Paul Corderman put forward Senate Bill 860 (SB 860) on January 28. Now, the Senate Budget and Taxation Committee is looking it over.

Maryland’s Crackdown on Sweepstakes Casinos Sparks Industry Opposition

The bill targets online contests that use two types of currency and mimic regular casino games, lotteries, or sports betting. The proposed law could punish any company helping these platforms, including payment processors, location trackers, and game content providers. These firms might lose their licenses and face criminal charges. People who break this law could get misdemeanor convictions, pay fines between $10,000 and $100,000, and spend up to three years in jail.

The bill has caused a stir among industry players, particularly from the Social and Promotional Games Association (SPGA), which speaks for sweepstakes operators. The group put out a statement saying no to the proposed law claiming it paints the wrong picture of sweepstakes gaming. They stressed that many promotions use sweepstakes models, which are not the same as illegal offshore betting operations. The SPGA also said its members follow the rules sticking to set standards for protecting consumers and staying compliant.

The association thinks the bill comes from lobbying by special interest groups trying to crush competition in the gaming market. They cautioned that banning sweepstakes platforms could hurt small businesses and the millions of people who enjoy social casino games.

Proposed Ban on Sweepstakes Casinos Aligns with Nationwide Regulatory Efforts

Maryland’s regulatory bodies have already taken action to limit sweepstakes gaming. Last month, the Maryland Lottery and Gaming Control Agency (MLGCA) sent 11 cease-and-desist letters to sweepstakes and illegal sports betting operators. Also, MLGCA Executive Director John Martin has been teaming up with lawmakers to polish strategies to tackle unregulated gambling activities.

The suggested ban fits with a wider trend across several states to control or outlaw sweepstakes casinos. Lawmakers in Mississippi and New York are thinking about similar laws, while Arizona has warned consumers about illegal gambling schemes. At the same time, a New Jersey lawmaker has put forward a bill that would control rather than ban sweepstakes gaming.

If SB 860 becomes law, it could create big problems for companies linked to the sweepstakes industry. This law would stop banks and gaming suppliers from working with these platforms. It would also ban giving out or renewing licenses for businesses operating in blacklisted areas.

The way the bill is written hints that even well-known European gaming companies with business in unregulated markets might face closer looks.

At the same time, Maryland lawmakers are talking about making online casinos legal. They are doing this through House Bill 17 put forward by Delegate Vanessa Atterbeary, and Senate Bill 340 led by Senator Ron Watson. This push to regulate online gaming has run into some pushback from people worried about how it might hurt the money made by physical casinos.