TLDR
- Maryland House passed HB 295 to ban sweepstakes casinos, voting 105-24 to send it to the Senate
- The bill makes operating online “interactive games” that simulate casino-style gaming a criminal offense
- Violators face fines between $10,000 and $100,000 and up to three years in prison
- A second bill, HB 1226, faced a tight March 23 crossover deadline to also reach the Senate
- Maryland could join Indiana and six other states that have passed sweepstakes casino bans in the past year
The Maryland House of Delegates has passed a bill that would ban sweepstakes casinos in the state. House Bill 295 passed with a 105-24 vote on March 20 and now heads to the Senate.
The bill targets what it calls “interactive games.” These are defined as online or mobile games that use multiple currency systems and let players exchange currency for prizes, cash, or cash equivalents.
The definition also covers games that simulate casino-style gaming, lottery games, or sports wagering. Games that only award noncash prizes are excluded from the ban.
Under HB 295, anyone who operates, conducts, or promotes these online interactive games would face criminal charges. Fines range from $10,000 to $100,000, and offenders could spend up to three years in prison.
The bill first had a hearing on February 5 before the Ways and Means Committee. After that, it sat without action for more than a month.
Maryland Lottery Agency Backs the Ban
During testimony, the Maryland Lottery and Gaming Control Agency spoke in favor of the bill. Agency representatives said sweepstakes platforms are conducting illegal gambling and that the agency lacks the tools to go after them.
Industry representatives pushed back. They said their platforms follow all current laws and argued that regulation would be a better path than an outright ban.
The Ways and Means Committee moved HB 295 forward on March 18. Lawmakers adopted amendments to the enforcement language before sending it to the full House.
On March 19, there was a brief debate during the second reading. Del. Jefferson Ghrist asked whether the bill would affect players who only use free-to-play games or those who receive prizes.
Del. Jheanelle K. Wilkins, who chairs the Ways and Means Committee, said the bill excludes free games. She said it targets interactive games where there is a reward and described sweepstakes casinos as unlicensed online casinos.
The House passed the bill the next day without further discussion.
Second Bill Faces Tight Deadline
A separate bill, HB 1226, also targets sweepstakes casinos but takes a different approach. It is an enforcement measure that would give regulators the power to issue cease-and-desist orders, block payments and access, and pursue criminal and civil penalties.
HB 1226 advanced from its second reading and was awaiting a third reading. However, it faced a March 23 crossover deadline. The bill needed to pass by that date to move to the Senate.
On the Senate side, lawmakers have already heard testimony on related bills. SB 112, a companion to HB 295, had a hearing on January 28. There has been no movement on it since then.
Senators have previously debated whether banning or regulating sweepstakes casinos is the better approach.
The Senate passed a ban bill last year, but it stalled in the House. If the Senate now passes HB 295 or HB 1226, Maryland would join a growing list of states that have moved against sweepstakes casinos.
Indiana passed a similar ban earlier in March 2026. Six other states have enacted sweepstakes casino ban bills over the past year.
