The Maryland Senate Budget and Taxation Committee last week unanimously approved SB 860, a bill banning online sweepstakes gaming and casinos, by a 13-0 vote.
“This speaks for itself. There is no statute to enforce this right now,” said Sen. Paul D. Corderman (R-2), author of the bill, during the hearing.
Sweepstakes Operators, Players In Maryland Would Be Subjected To A Fine Between $10,000 And $100,000
SB 860 would also allow the Maryland Lottery and Gaming Control Agency to deny any individual or operator a gaming license or to continue to operate in the state if they accept revenue that is connected to sweepstakes gaming.
A resident who violates the new law will be subjected to a fine between $10,000 and $100,000, while also facing up to three years imprisonment.
The bill defines an online sweepstakes game as one that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents, or any chance to win any prize or award or cash or cash equivalents.”
Social And Promotional Games Association Rejected SB 860
The Social and Promotional Games Association (SPGA), representing sweepstakes operators, released a statement in January opposing Corderman’s bill. The SPGA said 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.”
Eric Ebersole Introduced HB 1140 In The House
In addition, delegate Eric Ebersole (D-44A) introduced HB 1140 in the House as a companion bill to Corderman’s legislation. Both pieces of legislation seek to ban online sweepstakes gaming.
Online sports betting is legal and regulated in Maryland, but online casinos remain prohibited. Residents can legally place bets on sports via platforms like BetMGM, Caesars Sportsbook, DraftKings, and FanDuel.
However, they cannot play online slots, poker, or traditional casino table games.