Maryland lawmakers are again considering legislation to ban online sweepstakes-style casino games. These two companion bills, House Bill 295 and Senate Bill 112, were introduced at the start of the 2026 legislative session. The measures are almost identical and would create a broad ban on what the legislation calls interactive games. This marks the state’s latest attempt to limit the grey market gaming sector.

The proposals place responsibility on regulators and licensed operators to cut ties with businesses connected to such platforms. Lawmakers say this reflects a more aggressive approach to enforcement.

What the Bills Say

These bills define an interactive game as an online or mobile offering that uses multiple currency systems, letting players exchange credits for cash, cash equivalents, or prizes while simulating casino-style gaming, lottery products, or sports wagering. Games awarding only non-cash prizes are not included.

Under the proposed rules, anyone who operates, promotes, or conducts an interactive game in Maryland would be committing a criminal offense. Those found guilty could face up to three years in prison, fines between $10,000 and $100,000, or both. Licensed gaming applicants and holders would also have to report any business relationships with companies involved in such games.

The legislation also lets the State Lottery and Gaming Control Commission deny or revoke licenses if applicants or their partners knowingly make money from illegal interactive games. It also blocks licensing for companies connected to high-risk countries, US-designated state sponsors of terrorism, or places where online casino gaming is banned but still earns revenue. Giving false information or leaving out important details could also lead to penalties for licensees and their executives.

Moving Through the Legislature

Procedurally, the two bills are moving on separate tracks in the Maryland General Assembly. HB295 is currently with the Ways and Means Committee, while SB112 is assigned to the Budget and Taxation Committee. These bills were introduced on January 14th and would take effect on July 1st, if passed. Lawmakers are using this twin-track approach to build support in the House and the Senate for a unified response.

Maryland’s renewed effort makes it the sixth US state to attempt a statutory ban on online sweepstakes casinos. Earlier attempts during the 2025 session, with HB1140 and SB860, stalled in the House and didn’t proceed.

Focus on Deterrence

The new bills add criminal penalties and stricter licensing rules, moving from watching to actively stopping illegal games. Lawmakers claim these measures will protect consumers and strengthen state-controlled gaming. By going after not only operators but their financial, technical, and media partners too, the network behind sweepstakes-style gaming within this state is set to be disrupted.