Maryland Lawmakers Push to Ban Sweepstakes Casinos with Stiff Penalties
Maryland’s gearing up to outlaw online sweepstakes casinos, with matching bills in the Senate and House targeting what some call a loophole in gaming laws. Senate Bill 860, echoed in the House, aims to stamp out “conducting, organizing, or promoting” these platforms, defining them by their dual-currency setups, where virtual coins swap for cash prizes.
What’s in the Crosshairs
SB 860 spells it out: sweepstakes games use a “dual currency” system, think “gold coins” for play and “sweep coins” for prizes, often pegged 1:1 to the dollar. The ban covers a wide net: slots, video poker, table games, lotteries, keno, bingo, even sports betting, any online contest offering cash or equivalents.
The crackdown hits operators, game suppliers, payment processors, geolocation firms, and media affiliates. Anyone tied to the sweepstakes chain.
Penalties pack a punch: fines from $10,000 to $100,000, plus up to three years in prison. The Maryland Lottery and Gaming Control Agency, already on the case with cease-and-desist orders to over 10 sweepstakes outfits, would gain muscle, revoking or denying licenses to anyone profiting off these games. The agency’s all in, cheering the bills on.
The Debate Heats Up
Supporters, like gaming tech firm Light & Wonder, argue sweepstakes are a front for illegal gambling, dodging the rules that legit casinos follow.
But opponents, including VGW and the Social and Promotional Games Association (SPGA), push back hard. They call sweepstakes legit entertainment, akin to Starbucks or McDonald’s giveaways, and warn a ban could shove players toward sketchy offshore sites, hurting lawful businesses instead.
The rift’s stark. Maryland’s agency has long labeled these platforms illegal, issuing warnings to names like McLuck and Hello Millions, some of which have already pulled out. Yet, critics say the state’s tossing out a chance to regulate and tax, not just prohibit, a growing trend.
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