Maryland lawmakers are moving forward with two bills aimed at sweepstakes casinos, and one of them has already cleared a major hurdle. The bigger measure, HB 295, passed the Maryland House of Delegates by a 105–24 vote on March 20, 2026. A second proposal, HB 1226, is also advancing and is focused more directly on enforcement against illegal online gambling operators and the companies that support them.
Together, the bills show that Maryland is not just talking about sweepstakes casinos anymore. Lawmakers are now trying to shut them down through both a direct ban and stronger enforcement tools. For players, operators, and affiliates, the message is getting clearer: Maryland wants to make it much harder for sweepstakes-style gaming sites to stay active in the state.
What HB 295 Would Ban
HB 295 is the main sweepstakes casino ban bill. It would prohibit a person from operating, conducting, or promoting what the bill calls an interactive game in Maryland.
The definition is broad, but the main target is clear. The bill covers online or mobile games that use multiple currencies and let a player exchange those currencies for a prize, cash, or a cash equivalent. It also applies to games that simulate casino-style gaming, lottery-style games, or sports wagering.
In simple terms, that means lawmakers are aiming at the common sweepstakes casino model, where players often use one currency for general play and another that can be redeemed under the site’s rules. Supporters of the bill say this setup functions too much like gambling and should not be allowed outside Maryland’s legal gaming system.
The bill would make violations a misdemeanor. A person found guilty could face up to three years in prison, a fine between $10,000 and $100,000, or both. The bill would also allow state regulators to deny or revoke gaming licenses tied to people who violate the law.
Why HB 1226 Matters Too
While HB 295 is the direct ban bill, HB 1226 is more of an enforcement measure. It is called the Maryland Illegal Online Gambling Enforcement Act, and it is designed to go after illegal online gambling more broadly, including sweepstakes-style gaming.
HB 1226 defines a sweepstakes game using language centered on a dual-currency system and games that simulate gambling. But unlike HB 295, it does more than ban a product. It also reaches into the business network that helps those platforms operate.
The bill includes companies such as payment processors, geolocation providers, gaming suppliers, platform providers, and even media affiliates that knowingly support illegal online gambling. That makes it important not just for operators, but also for vendors and marketers connected to the sweepstakes industry.
HB 1226 would also give Maryland regulators stronger tools. It would allow cease-and-desist orders, help cut off access and payments, and open the door to criminal and civil penalties. In that sense, HB 295 and HB 1226 work together: one says the activity is banned, and the other builds a stronger enforcement framework around that ban.
What Happens Next in Maryland
The biggest news so far is that HB 295 has now passed the House. That gives the bill real momentum, but it is not law yet. It still needs to move through the Senate before it can reach the governor.
HB 1226 is also still moving. It has advanced from second reading and is waiting for third reading in the House. That means it remains alive, but it also faces time pressure because of Maryland’s legislative calendar.
For the sweepstakes industry, Maryland is becoming one of the more aggressive states in 2026. The state is not only trying to block the games themselves, but also to put pressure on the financial, technical, and marketing support behind them.
For players, nothing changes immediately. But if these bills keep moving, more sweepstakes casinos may decide to leave Maryland early rather than wait for a final law. That could mean new geo-blocks, updated terms, and fewer prize-play options for Maryland users in the months ahead.