Maryland lawmakers opened the 2026 session with a new push to restrict sweepstakes casinos. Two companion bills — HB 295 in the House and SB 112 in the Senate — would ban many casino-like sweepstakes sites that operate online in the state. Both measures were filed on January 14, 2026, and they would take effect on July 1, 2026 if approved.
The bills were filed “by request” of the Maryland Lottery and Gaming Control Agency, which oversees legal gaming in the state. Supporters say the goal is clearer rules and stronger consumer protection, while sweepstakes operators often say their model is a legal promotion.
What the Bills Would Ban
The bills create a new criminal ban on what they call an interactive game. In plain terms, that is an online game or promotion played on a phone or computer that uses multiple currencies and lets a player exchange currency for a prize, cash, or a cash equivalent.
The definition also depends on what the game looks like. It targets games that simulate casino-style gaming, lottery-style games, or simulated sports wagering. The bill text lists examples like slots, video poker, blackjack, roulette, craps, poker, keno, bingo, and sports betting-style contests. The bills say an interactive game does not include a game that only awards noncash prizes.
If passed, the bills would make it illegal to operate, conduct, or promote an interactive game in Maryland.
Penalties and New Reporting Rules
A person who violates the ban would face a misdemeanor punishable by up to 3 years in jail and a fine between $10,000 and $100,000, or both. The bills also direct the state commission to deny a license application or revoke an existing license if a person is found in violation.
The proposal adds new reporting requirements for licensed gaming businesses. Each year, license applicants and licensees would have to report certain business relationships with groups known to support or promote interactive games in Maryland. The list includes a payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate.
Licensees would also have to disclose where they or their affiliates accepted revenue from interactive games in places where those games are prohibited. The bills include a rule that could block a license if a person or affiliate knowingly accepts revenue tied to certain high-risk jurisdictions.
What Happens Next in Annapolis
HB 295 is assigned to the House Ways and Means Committee, and SB 112 is assigned to the Senate Budget and Taxation Committee. Committees can schedule hearings, offer amendments, vote the bills forward, or let them stall. Maryland’s 2026 session is scheduled to run through April 13.
Regulators have tried to push some sites out. In January 2025, the agency sent cease-and-desist letters to 11 sweepstakes operators, and later said several kept taking Maryland players. The new bills are meant to give clearer authority to force shutdowns, not just request them. Casino.org also reports the package was introduced at the request of Gov. Wes Moore, after the commission warned that new sites keep appearing.
Maryland has considered a sweepstakes ban before. In 2025, a similar proposal passed the Senate but did not become law by the end of the session. This year’s bills restart the debate with updated language and a new timeline.
For players, nothing changes yet. The bills do not shut down sites today, but if the proposals advance, some operators may block Maryland users early to reduce risk. The next key update is whether either committee sets a hearing in the coming weeks.