Sweepstakes Ban on the Table for Maryland as Two Bills Advance

Maryland lawmakers continue their efforts to put a stop to the controversial sweepstakes sector, advancing bills that would introduce stricter restrictions. These include HB 295, which just passed the House, and HB 1226, which made some strides.

HB 295 Secured Strong Approval by House Members

HB 295 just received a favorable 105-24 vote from the Maryland House, allowing it to advance to the Senate as the legislative session continues. The bill seeks to introduce stricter wording that explicitly bans sweepstakes casinos.

Sweepstakes, for context, are a form of gaming that uses a dual-currency system, allowing players to play with virtual tokens rather than real money. While such casinos allow players to purchase virtual currency with real money, the specifics differentiate sweepstakes enough for operators to claim that their products do not classify as gambling per the legal definition.

HB 295, however, would introduce a criminal prohibition on any gaming platform that simulates casino gaming and “utilizes multiple currency systems of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents.” The bill makes an exception for games that award non-monetary prizes.

If the bill passes into law, violators would risk up to 3 years in prison and fines ranging from $10,000 to $100,000.

HB 1226 Must Pass Its Third Hearing Today If It Is to Advance

In the meantime, a similar bill also seeks to snuff out sweepstakes casinos. This measure is HB 1226, which would prohibit illegal online gambling and provide local regulators with the power to send violators cease-and-desist orders.

Regulators will also be allowed to tap into payment blocking and IP blocking to prevent illegal online gaming from taking place.

While the bill just passed its second reading, it would need to pick up the pace if it is to pass. Maryland’s crossover deadline is today, meaning that HB 1226 would need to pass its third reading today.

If HB 1226 does end up passing, both bills’ future will be discussed by the Senate. If any of them gets signed into law, Maryland will become the latest state to fully reject the divisive sweepstakes sector.   

Minnesota is likewise looking to introduce laws that criminalize the operation of sweepstakes casinos.