Maryland lawmakers could consider banning sweepstakes casinos as they pursue online casino legalization in the months ahead. Sen. Paul Corderman introduced SB 860 on Jan. 28, a bill prohibiting online social sweepstakes games. The proposal comes as Maryland lawmakers also consider legalizing online casinos.
Maryland Sweepstakes Casinos Bill Criticized By Social And Promotional Games Association
The Social and Promotional Games Association (SPGA), representing sweepstakes operators, released a statement Tuesday wholeheartedly rejecting Maryland’s bill. The Association adds that the legislation conflates sweepstakes platforms with illegal offshore operators.
“This misguided legislation threatens to criminalize a marketing tool utilized daily by thousands of American businesses to promote everything from coffee to cheeseburgers to cryptocurrency,” the statement reads.
“Social casinos with sweepstakes prizes are a legal form of entertainment enjoyed by millions of American adults. SPGA members operate within the laws governing sweepstakes promotions and uphold the highest standards of compliance, transparency and consumer protection.
“This bill is another unfortunate example of anti-competitive special interests bending the legislature to their will at the expense of innovation, small businesses, and the millions of consumers who enjoy the safe and engaging mobile games offered by social casinos.”
SB 860 Defines Online Sweepstakes Games As An Internet Platform That Simulates Casino-Style Gambling
SB 860 would require the Maryland Lottery and Gaming Control Agency to deny or revoke certain licenses under various circumstances. The bill defines an online sweepstakes game as an internet platform that uses a dual-currency system and simulates casino-style gambling, sports betting and lottery games.
The bill would prohibit the operation of sweepstakes in the Old Line State. Violations would be misdemeanors punishable by three years in prison or a fine of not less than $10,000 and not exceeding $100,000.
In Maryland, online sports betting is legal and regulated, but online casinos remain prohibited. Residents can legally place bets on sports via platforms like BetMGM, Caesars Sportsbook, DraftKings, and FanDuel, but they cannot play online slots, poker or traditional casino table games.
Del. Vanessa Atterbeary, who chairs the House Ways and Means Committee, introduced HB 17 to legalize online casinos. Last year, Atterbeary’s online casino legislation passed the House but died in the Senate.
In January, Sen. Ron Watson proposed a new bill, SB 340. This is a step in the right direction toward legalization. Maryland currently allows in-person casino gambling at commercial casinos and legal sports betting both online and in retail locations.