What Actually Happened
Maryland lawmakers advanced two separate bills, each aimed at the sweepstakes casino model from a slightly different angle.
HB 295, titled Gaming – Prohibition on Interactive Games and Revenue From Illegal Markets, targeted online “interactive games” that use multiple currencies, offer exchangeable rewards, and simulate casino, lottery, or sports wagering products. It passed the House 105–24 on March 20.
HB 1226, the Maryland Illegal Online Gambling Enforcement Act, took a more explicit enforcement route. It defined sweepstakes games as dual-currency promotions that simulate gambling and gave the Attorney General and prosecutors more tools to act against illegal online gambling. It passed the House 135–1 on March 23.
Both bills then moved to the Senate Budget and Taxation Committee. HB 1226 had a hearing on March 31, and HB 295 had one on April 1. Neither advanced before the session ended.
Why Lawmakers Wanted It
The push came after regulators struggled to get operators to leave the state voluntarily.
By February, the Maryland Lottery and Gaming Control Agency and Office of the Attorney General staff had issued 75 cease-and-desist letters to illegal online gaming operators. Twenty-four operators had withdrawn, stopped offering games, or changed their games to comply. Another 16 had refuted the letters and failed to comply, while 35 had not responded.
The bills were designed to give the state a firmer statutory basis for enforcement, rather than relying mainly on warning letters and case-by-case pressure.
What HB 295 Would Have Done
HB 295 was the broader of the two bills.
It would have prohibited people from operating, conducting, or promoting an “interactive game” in Maryland. The bill defined that category around online games or promotions involving consideration, chance, a reward, multiple currencies, and simulated casino-style gaming, lottery games, or sports wagering.
Violations could have been treated as misdemeanors, with fines between $10,000 and $100,000 and up to three years in prison. The bill also put pressure on licensed gaming companies by requiring disclosures tied to revenue from illegal interactive gaming markets.
What HB 1226 Would Have Done
HB 1226 was more direct about sweepstakes casinos and enforcement.
The bill would have prohibited knowingly operating, offering, conducting, engaging in, or promoting illegal online gambling in Maryland. It also covered people or businesses that knowingly supported that activity, including payment processors, platform providers, geolocation providers, content suppliers, promoters, celebrity endorsers, and media affiliates.
For operators, a first violation could have carried up to three years in prison, a fine of up to $50,000, or both. Subsequent violations could have brought the same prison exposure and fines of up to $100,000.
The bill also treated each online gambling wager and each individual promotion as a separate violation. Courts would have been required to order forfeiture of profits, gross receipts, and other benefits tied to violations.
Backed by Regulators, Opposed by Industry
The effort had direct support from Maryland gaming officials.
HB 295 was a departmental bill requested by the Maryland Lottery and Gaming Control Agency and listed by request of the governor. The agency also supported HB 1226 with amendments during its Senate committee hearing.
The industry response was the opposite.
The Social Gaming Leadership Alliance welcomed the outcome after the session ended. Managing Director Sean Ostrow said the group was “pleased with this result in Maryland” and argued that the state should regulate and tax social gaming instead of banning it.
SGLA said it wants to work with lawmakers and regulators in 2027 on best practices for the broader social games industry.
What This Means for Players
For players, the immediate answer is simple: Maryland did not pass a new sweepstakes casino ban in 2026.
That does not mean the issue is settled. The House has now passed two bills on the subject, the Senate held hearings on both, and regulators have already made clear that they want stronger enforcement tools.
Maryland also fits into a wider state-level push against the dual-currency model. Indiana has signed a sweepstakes casino ban that takes effect July 1, 2026. Maine’s LD 2007 was signed in April. Louisiana is considering multiple bills, including one that would add several gambling offenses to the state’s racketeering law.
For now, Maryland remains in the “watch closely” category. No new ban is in effect, but the failed 2026 bills give lawmakers a clear starting point if they return to the issue next session.
Blaise Luis
