Maryland’s gaming regulator is turning up the heat on sweepstakes casinos. At a recent hearing, officials from the Maryland Lottery and Gaming Control Agency told lawmakers they believe sweepstakes sites are illegal in the state and should be treated like other unlicensed online gambling. They also said the state’s current tools—mainly cease-and-desist letters—are not strong enough to keep new sites from popping up.
The comments came during debate over SB 112, a bill that would ban certain “interactive games” that look like casino, lottery, or sports betting products online. No vote happened at the hearing, but the bills are moving through committees and could shape how Maryland handles sweepstakes casinos in 2026.
What Maryland Lottery Said at the Hearing
Lottery director John Martin told lawmakers that online gambling is growing quickly in Maryland because of “ambiguity” and “loopholes” in current statutes. He said the bill is meant to close those gaps so the state can enforce the rules more clearly.
Another key message: the agency says it already sees most online gambling outside the legal system as unlawful. The Lottery’s policy director Jennifer Beskid said the agency considers any gaming site outside Maryland’s licensed sportsbooks and licensed DFS operators to be illegal, and she pointed to sweepstakes casinos as an example.
During the hearing, officials also compared sweepstakes casinos to offshore and black-market sites. Their point was that if a platform offers casino-style play online and is not part of Maryland’s approved system, the state views it as operating outside the law.
Cease-and-Desists Only Work Some of the Time
Maryland Lottery officials said they have tried to push unlicensed sites out by sending cease-and-desist letters. But they told lawmakers that approach has limits.
According to the agency, it sent 75 cease-and-desist letters and saw about a 33% success rate, meaning roughly one out of three recipients stopped serving Maryland users. Officials argued that’s “pretty good” compared to other states, but still not enough because the market keeps growing and new “bad actors” keep arriving.
The Lottery also did not clearly separate sweepstakes casinos from other types of unlicensed online gambling in its comments. Instead, officials spoke about the broader category of illegal online gaming, with sweepstakes described as one part of that larger issue.
“If They Want Regulation, They Can Apply”
One of the most direct comments came when lawmakers asked whether Maryland should regulate sweepstakes casinos instead of banning them.
A trade group called the Social Gaming Leadership Alliance opposed the bill and said a ban could push “law-abiding” operators out while leaving truly illegal sites behind. A representative connected to VGW also argued that sweepstakes platforms are more like video game companies using promotions, and said they would be open to discussing a different regulatory framework.
The Lottery’s response was blunt. Jennifer Beskid said if these operators want to offer services in Maryland, they can apply for a license through the state and meet the criteria already required by law. In other words, the agency is not asking for a new sweepstakes license category—its position is that operators should follow the same path as other legal gaming options or leave.
What Happens Next
The Senate bill, SB 112, has been heard in committee. The House version, HB 295, is scheduled for a hearing next. If either bill advances, lawmakers could still amend the language, narrow the definition of “interactive games,” or adjust penalties and reporting rules.
For players, nothing changes immediately. New sweepstakes sites may still operate unless they choose to exit on their own. But the Lottery’s comments signal that enforcement pressure is likely to keep rising, especially if lawmakers move forward with a clear ban.