Maryland looks to crack down on online sweepstakes casinos with bills

With Maryland lawmakers back in session for 2026, two bills will be under consideration to prohibit online sweepstakes casinos in the Old Line State, bringing Maryland in line with a growing number of other states that have banned the perceived illegal gambling market. House Bill 295 and Senate Bill 112, matching legislative proposals, would prohibit interactive gaming operators that use dual-currency systems which can be exchanged for any prize, award, cash or cash equivalent. With the two proposals, Maryland becomes the sixth state in 2026 to take action against sweeps casinos.

The two bills emerge at the urging of Gov. Wes Moore and the Maryland Lottery and Gaming Control Commission and a year after previous legislative efforts fell short of passage.

Lawmakers and state regulators have disagreed with claims from the sweepstakes casinos' supporting organization, the Social Gaming Leadership Alliance (SGLA), that the platforms are not violating state laws by offering casino games online.

Michael Eaton, managing director of gaming with the Lottery and Gaming Control Commission, wrote in fall 2025 that offerings found at online sweepstakes casinos contain all the elements of gambling. "In other words," he wrote, "it is gaming."

The proposed bills carve out punishments for any entity that operates, conducts or promotes interactive games, which are defined as any mobile game that uses multiple currency systems of payment that users can exchange for any prize, award, cash or cash equivalents while playing games that simulate casino-style gaming, lottery games or sports betting.

Legislators specifically excluded only games that "solely award noncash prizes" from the prohibition. Violators would face up to three years in prison and/or a fine of between $10,000 and $100,000.

Maryland currently has yet to pass legislation that would legalize real money online casino operators in the state despite previous attempts to do so. In fact, Old Line State lawmakers have attempted to rid the market of online gambling platforms in recent months.

The Maryland Lottery and Gaming Control Commission sent out two rounds of cease-and-desist orders to online sweepstakes casinos in 2025. While some brands obliged the demand, others have remained operational in the state, which has prompted two sessions featuring proposed legislation to outright ban illegal interactive gaming.

Last year, a bill from Sen. Paul Corderman was unanimously approved by the Senate but stalled in the House Ways and Means Committee. A House bill from Del. Eric Ebersole was also introduced but did not make much traction.

With the urging of the governor and the state gaming regulator, at least one of these two 2026 bills would appear to have enough early steam to pass and make Maryland the latest state to officially ban online sweepstakes casinos.

Grant Lucas