Maryland lawmakers have launched a renewed attempt to eliminate online sweepstakes casinos from the state, introducing two complementary bills at the start of the 2026 legislative session. The initiatives, House Bill 295 and Senate Bill 112, are substantially identical measures designed to create a comprehensive ban on what the legislation terms interactive gaming.
Read also: United Kingdom and Chile sign strategic alliance to regulate the online betting market
This initiative represents the latest chapter in Maryland‘s efforts to curb the grey market gaming sector, a segment that authorities consider to operate in an ambiguous legal zone, circumventing regulations established for authorized gambling. With this dual legislative approach, Maryland becomes the sixth U.S. state to attempt a legal ban on such platforms.
Legal Definition of Interactive Gaming and Scope of the Ban
Both bills precisely define what constitutes interactive gaming subject to prohibition. According to the proposed legislation, interactive gaming is considered any online or mobile offering that utilizes multiple currency systems, allowing participants to exchange credits for cash, cash equivalents, or prizes, while simulating casino-style games, lottery products, or sports betting.
The definition includes a significant exception: games that award only non-monetary prizes are excluded. This distinction aims to differentiate between free-to-play entertainment platforms and those that facilitate monetary transactions, which authorities deem unauthorized gambling activities.
The specific language of the legislation reflects an effort to capture the characteristic business model of sweepstakes casinos, which typically operate through dual-currency systems where players can acquire gold coins for play and sweepstakes coins that can be redeemed for cash prizes.
Restrictions on High-Risk Jurisdictions
Additional provisions in both bills prohibit the licensing of entities linked to high-risk jurisdictions identified by international watchdogs. This language also covers jurisdictions designated by the United States as state sponsors of terrorism.
Particularly noteworthy is the inclusion of jurisdictions where online casino gambling is prohibited, yet companies still generate related revenue. This provision appears aimed at preventing operators with a presence in unregulated or illegal markets elsewhere from obtaining licenses in Maryland, even if those operations do not occur directly on U.S. soil.
Dual-Track Legislative Strategy
In terms of procedure, both bills are advancing through separate paths in the Maryland General Assembly. HB295 is currently in the Ways and Means Committee, while SB112 has been assigned to the Budget and Taxation Committee.
Read also: Lula holds Bolsonaro responsible for the online betting boom in Brazil
Both measures were introduced on January 14, 2026, and if passed, would take effect on July 1 of the same year. This dual-track approach underscores the legislative intent to consolidate support in both the House and the Senate around a unified regulatory response, increasing the chances of passage through simultaneous momentum in both chambers.
Background of Failed Attempts in 2025
The current initiative follows previous but unsuccessful efforts during the 2025 legislative session, when related measures HB1140 and SB860 stalled in the House without advancing. The failure of those earlier attempts did not deter lawmakers, who have returned with strengthened proposals.
The current bills significantly expand upon those prior efforts by adding explicit criminal penalties and stricter license-related consequences. This shift indicates a pragmatic evolution toward deterrence rather than relying solely on incremental oversight or administrative measures.
Regulatory Concerns Over Consumer Protection
The proposals reflect broader regulatory concerns that unlicensed interactive gaming erodes consumer protections and undermines state-controlled gambling frameworks. Unlike licensed operators who must adhere to responsible gaming requirements, age verification, financial audits, and other safeguards, sweepstakes platforms typically operate with minimal oversight.
Regulators argue that this lack of control creates risks for vulnerable players, hinders money laundering prevention efforts, and deprives the state of tax revenue that licensed operators would generate. By channeling gambling activity to unregulated platforms, these services potentially weaken the integrity of the established legal gaming ecosystem.
Attack on the Entire Support Ecosystem
A distinctive feature of the proposed legislation is its holistic approach, targeting not only sweepstakes casino operators but also the financial, technical, and media partners that support them. By imposing due diligence obligations on payment processors, technology providers, and advertising networks, lawmakers aim to disrupt the entire ecosystem that sustains these games within Maryland’s borders.
This strategy recognizes that gaming platforms cannot function in isolation and rely on infrastructure provided by third parties. By making these facilitators face consequences for supporting unauthorized operations, the legislation seeks to create multiple barriers that hinder the practical operation of sweepstakes casinos in the state.
Read also: EveryMatrix: ATG® Casino celebrates record with MEGA Jackpot winner of €1.4 million
