The momentum behind the Maryland sweepstakes bill has seemingly dwindled, as the State’s legislative sessions ended without a formal conclusion to the bill’s passing.
There were two key opportunities for the prohibition of dual-currency sweepstakes, with the House of Delegates passing two separate bills in 2026 that would have outlawed dual-currency sweepstakes.
Lack of progress around the bill was celebrated by the Social Gaming Leadership Alliance (SGLA), as they claimed that there had been ‘false allegations’ driven by casino interests.
“We are pleased with this result in Maryland and want to thank the Maryland lawmakers who took the time to thoroughly consider this issue,” said SGLA Managing Director Sean Ostrow.
“Over multiple hearings and dozens of meetings, SGLA addressed false allegations by casino interests by demonstrating that the Social Plus industry already offers strong consumer protections and contributes to Maryland’s economy, while pushing back against efforts to misrepresent long-standing lawful activity as gambling.
“We are eager to work with lawmakers and regulators in 2027 to codify SGLA’s best practices for the broader social games industry, which can generate significant tax revenue while keeping consumers safe online.”
Both House Bill 295 and House Bill 1226 failed to emerge from the Senate Budget and Taxation Committee. While HB 295 was sponsored by the House Ways and Means Committee at the request of the Maryland Lottery and Gaming Control Agency (MLGCA), there were also previous implications that the bill would be supported by Gov. Wes Moore.
The bills were in response to cease and desist letters that had been sent out. However, the MLGCA warned that compliance had not been met for these letters.
Nonetheless, the District of Columbia has been identified as the next market to prohibit sweepstakes through the introduction of the Internet Gaming and Consumer Protection Act.
DC is aiming to take a hard line against sweepstakes through significant sanctions, with a potential civil fine of up to $100,000 for each violation, which could rise to $500,000 if the ban is violated multiple times.
Councilmember Wendell Felder stated in a letter to the DC Council: “Inaction carries real consequences. Without a legal framework, revenue continues to flow to unregulated operators, consumers remain exposed to risk and the district falls behind neighbouring jurisdictions that are moving forward.”If the act is passed, the district would join Indiana and Maine as US jurisdictions that have banned online sweepstakes casinos in 2026.
