Maryland lawmakers moved to ban sweepstakes casinos, passing one bill while another enforcement measure races against a key deadline.
The Maryland House has passed House Bill 295, targeting sweepstakes casinos and sending it to the Senate. Meanwhile, a separate measure, House Bill 1226, has advanced to third reading but faces a tight deadline.
HB 295 Targets “Interactive Games”
HB 295 would create a new criminal prohibition on “interactive games,” defined as any online or mobile game that:
“utilizes multiple currency systems of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents” and “simulates casino-style gaming… lottery games… or sports wagering.”
The measure explicitly excludes games that award noncash prizes.
HB 295 targets anyone who operates, conducts, or promotes online “interactive games.” Violators face criminal charges, carrying fines of $10,000 to $100,000 and up to three years’ imprisonment.
Bill Advances After Month-Long Stall
The bill received its first hearing on February 5 before the Ways and Means Committee, which is also its sponsor.
Testimony in favor of the ban included that from the Maryland Lottery and Gaming Control Agency. Representatives said that the platforms are conducting illegal gambling, and the agency is currently unable to target them effectively.
Meanwhile, industry representatives said they currently follow all applicable laws and testified in favor of regulation.
After over a month of no action, the Ways and Means Committee advanced HB 295 on March 18. At that meeting, lawmakers adopted amendments to the enforcement language and sent the bill to the House floor.
On March 19, there was a short debate on the House floor during the second reading. Del. Jefferson Ghrist raised questions about whether players who engage only in free-to-play games or those who receive prizes would be targeted.
Del. Jheanelle K. Wilkins, Chair of the Ways and Means Committee, responded that the measure excludes free games but targets “interactive games” where there’s a reward. She described sweepstakes casinos as unlicensed online casinos.
The following day, the House passed HB 295 105-24 without discussion.
HB 1226 Faces Crossover Deadline Pressure
HB 1226, which also targets sweepstakes casinos, advanced from second reading and now awaits third reading.
HB 1226 is an enforcement measure. It targets illegal online gambling by prohibiting operators, promoters, and service providers from supporting such activity. It empowers regulators to issue cease-and-desist orders, block payments and access, and pursue criminal and civil penalties against violators.
However, the measure faces a critical deadline. Maryland’s crossover deadline is March 23, meaning the bill must pass today to advance to the Senate.
What’s Next?
HB 295 heads to the Senate. If HB 1226 advances before the deadline, the Senate would have two separate measures to discuss.
The Senate has already heard testimony on two bills, including SB 112, a companion to HB 295. However, there has not been any movement since its initial Jan. 28 hearing. Lawmakers previously questioned whether prohibition or regulation is the right path forward.
Notably, the Senate passed a ban bill last year, but it stalled in the House. If the Senate passes HB 295 (or HB 1226), Maryland would join Indiana, which passed a similar measure earlier this month, and six other states that have enacted ban bills in the past year.
Featured image: Martin Falbisoner via Wikimedia Commons (license)
The post Maryland House Passes Sweepstakes Ban Bill, Advances Another appeared first on Gambling Insider.
