Quick Overview
- State lawmakers approved HB 295 with a commanding 105-24 vote, advancing the sweepstakes casino prohibition to the Senate
- The legislation criminalizes the operation of web-based “interactive games” that mimic traditional casino gambling experiences
- Penalties for violations include monetary sanctions ranging from $10,000 to $100,000 plus potential imprisonment of up to three years
- Another measure, HB 1226, was racing against a March 23 crossover cutoff to advance to the Senate chamber
- If enacted, Maryland would become the eighth state in recent months to prohibit sweepstakes casino platforms
Lawmakers in Maryland’s House of Delegates have approved legislation aimed at eliminating sweepstakes casinos throughout the state. The measure, known as House Bill 295, secured passage on March 20 with a decisive 105-24 margin and has been transmitted to the Senate for consideration.
The legislation focuses on what lawmakers have termed “interactive games.” According to the bill’s language, this encompasses digital or mobile-based gaming platforms that utilize dual-currency mechanisms and permit users to convert virtual currency into tangible rewards, monetary payouts, or equivalent value.
The statutory definition encompasses platforms that replicate traditional casino experiences, lottery-style contests, or sports betting activities. Notably, the prohibition excludes gaming applications that distribute exclusively non-monetary rewards.
Should HB 295 become law, individuals who operate, manage, or advertise these digital interactive gaming platforms would face prosecution. Financial penalties span from $10,000 to $100,000, while convicted offenders could receive prison sentences of up to three years.
The legislative journey began on February 5 with an initial hearing before the Ways and Means Committee. Following that session, the measure remained dormant for over thirty days before gaining momentum.
State Gaming Authorities Support Prohibition
When the Maryland Lottery and Gaming Control Agency testified, officials expressed strong support for the prohibition. Agency representatives characterized sweepstakes operations as unlawful gambling enterprises and emphasized that current regulatory frameworks provide insufficient authority to take enforcement action.
Representatives from the sweepstakes industry contested these characterizations. They maintained that their business models comply with existing statutory requirements and advocated for a regulatory framework rather than complete prohibition.
The Ways and Means Committee advanced HB 295 on March 18. Before transmitting the bill to the full chamber, committee members incorporated amendments addressing enforcement provisions.
A brief floor discussion occurred on March 19 during the legislation’s second reading. Del. Jefferson Ghrist raised questions about whether the measure would impact users of complimentary gaming platforms or individuals receiving prizes.
Del. Jheanelle K. Wilkins, serving as Ways and Means Committee chair, clarified that the legislation exempts no-cost gaming options. She explained the bill’s focus on interactive platforms offering rewards and characterized sweepstakes casinos as unregulated digital gambling establishments.
Final passage came the following day without additional floor debate.
Companion Legislation Races Against Calendar
A companion measure, HB 1226, addresses sweepstakes casinos through an alternative strategy. This enforcement-focused legislation would authorize regulatory officials to issue cease-and-desist directives, obstruct financial transactions and platform access, and initiate both criminal prosecutions and civil enforcement actions.
HB 1226 had cleared its second reading stage and awaited final consideration. The measure confronted a critical March 23 crossover threshold. Without passage by that deadline, the bill would fail to advance to the Senate chamber.
In the upper chamber, senators have already conducted hearings on related proposals. SB 112, serving as a companion to HB 295, received testimony on January 28. No subsequent action has occurred on that measure.
Senate members have previously engaged in discussions regarding whether prohibition or regulation represents the superior policy approach for sweepstakes casino operations.
During last year’s legislative session, the Senate approved prohibition legislation that ultimately failed to advance through the House. Should senators now approve either HB 295 or HB 1226, Maryland would join an expanding roster of jurisdictions taking action against sweepstakes gaming platforms.
Indiana enacted comparable prohibition measures earlier this March 2026. An additional six states have implemented sweepstakes casino bans during the preceding twelve months.
