Maryland Draws a Hard Line
Testifying before the Senate Budget and Taxation Committee, officials from the Maryland Lottery and Gaming Control Agency made their position clear. Online gambling is growing fast in the state, and not because lawmakers invited it in.
According to Lottery Director John Martin, the problem is ambiguity. Existing laws leave room for interpretation, and sweepstakes platforms have been happy to operate in that space. Senate Bill 112 is designed to shut those gaps for good.
The Lottery’s position is straightforward. If an online gaming site isn’t licensed by Maryland, it shouldn’t be operating in the state at all. Sweepstakes casinos were repeatedly cited as examples of platforms that fall outside the approved system.
No hedging. No fine print. Just a clear line being drawn.
What the Bill Actually Targets
SB 112 doesn’t mention “sweepstakes casinos” in big flashing letters, but the definition does the job for them.
It goes after what it calls “interactive games”. That includes online platforms that use multiple currencies to offer casino-style, sports betting-style, or lottery-style games, where players can exchange those currencies for cash, prizes, or cash equivalents.
If that sounds familiar, it should. That description lines up neatly with the sweepstakes casino model.
What the bill does not go after is just as important. Games that only offer non-cash rewards are left alone. Pure social games, loyalty points, and pure entertainment products stay on the safe side of the line.
This isn’t a broad swipe at online gaming. It’s a targeted move aimed squarely at casino-style platforms operating outside Maryland’s licensing system.
Why Warnings Weren’t Enough
Maryland didn’t jump straight to legislation. Regulators tried enforcement first.
The Lottery sent out 75 cease-and-desist letters to online gaming operators it believed were operating illegally. About a third of those companies complied and left the state.
Lottery officials actually called that success rate “pretty good.” But they also admitted it wasn’t enough.
Too many operators ignored the warnings. Too many new sites popped up. And too much online gambling activity kept flowing through platforms the state can’t oversee, audit, or regulate.
From the Lottery’s perspective, that experiment failed. SB 112 is what comes next.
Sweepstakes, Offshore Casinos, Same Category
One of the more striking moments in the hearing was how casually sweepstakes casinos were grouped with offshore gambling sites.
Lottery officials acknowledged that many illegal operators are based overseas, but they also made a point of saying plenty are operating right here in the U.S. From Maryland’s perspective, where a company is based doesn’t really matter. What matters is whether it’s licensed.
If you’re not one of Maryland’s licensed mobile sportsbooks or approved fantasy sports operators, you’re simply not part of the system. Sweepstakes casinos don’t get special treatment just because they use promotional language or creative currency systems.
That comparison says a lot. Patience is running thin, and the state isn’t interested in carving out exceptions anymore.
Of Course Regulation Was Suggested
Trade groups like the Social Gaming Leadership Alliance and companies like VGW argued that their platforms are legitimate promotional games with built-in consumer protections. Their pitch was the same old pitch: regulate the space instead of banning it, or risk pushing players toward worse, truly illegal options.
The response from Maryland regulators was blunt.
If sweepstakes companies want to operate in the state, they can apply for a license and play by the same rules as everyone else. If they can’t, or won’t, then they don’t belong in the market.
This Isn’t Just About Sweepstakes
While sweepstakes casinos are very much in the spotlight, SB 112 goes wider than that. The bill is aimed at any unlicensed online gaming that looks and operates like gambling, regardless of the label it uses.
According to the Lottery officials, the goal here is clarity. Clear definitions, clear authority, and clear consequences when platforms ignore the rules. That’s why the bill includes criminal penalties. It gives regulators more than just warning letters and lets them work directly with law enforcement when operators refuse to comply.
A National Pattern Is Taking Shape
Maryland isn’t acting alone. During the hearing, lawmakers repeatedly pointed to what’s happening elsewhere. Other states have already moved against sweepstakes casinos, and more are following close behind.
Last year, several states passed outright bans. This year, even more are lining up with bills, enforcement actions, or both. The tolerance that once allowed sweepstakes platforms to quietly operate is disappearing fast.
What This Means Right Now
No vote has been taken yet on SB 112, and its companion measure, House Bill 295, is still working its way through the House. But the tone of the hearing left little doubt about the direction lawmakers are heading.
For sweepstakes operators, the message is uncomfortable but clear. Maryland no longer sees them as a quirky workaround or a policy puzzle. It sees them as unlicensed gambling.
For players, that usually means one thing: uncertainty. Shutdowns, exits, and sudden changes tend to follow once lawmakers stop debating definitions and start rewriting statutes.
Maryland isn’t asking whether sweepstakes casinos are legal anymore. It’s deciding how firmly to shut the door.
Blaise Luis
