Sweeps in the Crosshairs Again
Maryland lawmakers are once again weighing whether to shut the door on sweepstakes casinos. But this time, the industry showed up ready to fight.
At a February 5 hearing before the House Ways and Means Committee, the Social Gaming Leadership Alliance (SGLA) urged lawmakers not to advance House Bill 295, a proposal that would ban sweepstakes gaming in the state. The message from the trade group was clear: a ban would go too far, solve the wrong problem, and leave Maryland worse off.
The bill is still sitting in committee. No vote yet. But after this hearing, it’s clear this isn’t some minor rule change. Lawmakers are wrestling with a bigger question: is sweepstakes gaming something to regulate, or something to eliminate?
What HB 295 Would Do
House Bill 295 would shut down sweepstakes-style gaming platforms in Maryland, specifically the dual-currency “Social Plus” sites that offer casino-style games while positioning themselves as promotional sweepstakes rather than traditional online casinos.
Maryland has been here before. A similar push stalled last year. Now the question is back on the table.
Supporters of the bill say sweepstakes casinos are exploiting loopholes in the law and undercutting licensed gambling operators. Opponents argue they’re being lumped in with illegal outfits that play by no rules at all.
Same platforms. Same arguments. Different year.
SGLA’s Case: “This Is an Overcorrection”
The SGLA, which represents major sweepstakes operators including VGW, pushed back hard.
According to the group, more than 120,000 Maryland adults have used Social Plus platforms since 2012. They emphasized that these games are free-to-play, restricted to users 21 and over, and equipped with age verification, geolocation controls, data security standards, and responsible gameplay tools.
Sean Ostrow, managing director of the SGLA, told lawmakers that these safeguards would vanish if compliant operators are forced out of the state.
The alliance also stressed that its members operate under regulation from federal consumer protection authorities, including the Federal Trade Commission and the Department of Justice’s consumer protection division.
Their argument boils down to the fact that banning regulated, visible operators doesn’t eliminate demand. It just pushes players toward offshore or truly illegal sites with fewer safeguards.
Regulation Instead of Prohibition?
Instead of fast-tracking a ban, the SGLA urged lawmakers to slow down and study what regulation might look like.
The group proposed creating a defined legal framework that would allow Social Plus games to operate under state oversight. According to the group, that model could generate at least $20 million a year through registration fees and taxes tied to player activity.
That number isn’t random. Maryland, like most states, is currently dealing with budget pressures, and the alliance framed its pitch as both consumer-conscious and revenue-positive.
Executives from VGW, one of the biggest sweepstakes operators, backed that up. They told lawmakers the industry already follows its own set of safety rules aimed at protecting players, even without a formal state license. In their view, this isn’t the Wild West, it’s a space that’s been trying to act responsibly while waiting for clearer rules.
The Bigger Policy Question
HB 295 isn’t only about sweepstakes casinos. It’s about how Maryland decides to deal with new kinds of online gaming.
The state already runs a tightly controlled system for mobile sports betting and daily fantasy sports. From the regulator’s point of view, if you’re not inside that system, you shouldn’t be operating here. Simple as that.
But sweepstakes operators see themselves differently. They argue they’re offering promotional gaming, not real-money gambling, and that a widespread ban ignores that distinction.
So this isn’t just a legal fight. It’s a policy choice.
Does Maryland shut the door completely on anything that looks like a workaround?
Or does it try to build a framework that brings the activity under a clearer, taxable, regulated structure?
Where Things Stand
HB 295 is still sitting in committee. Lawmakers heard the arguments on February 5, but no vote was taken. And it’s worth remembering: a similar ban attempt fizzled out last year. So nothing here is automatic.
For now, sweepstakes platforms are still operating in Maryland. But the pressure is building.
For lawmakers, the decision isn’t just about one category of gaming. It’s about whether prohibition is the cleanest solution or whether regulation is the smarter one.
The debate is far from over.
Blaise Luis
