Maryland Considers Sweepstakes Prohibition as Dual Bills Move Forward

(AsiaGameHub) –   Maryland legislators are persisting in their campaign to curb the contentious sweepstakes industry by moving forward with legislation that imposes more rigorous constraints. This includes HB 295, which has successfully cleared the House, and HB 1226, which has also seen progress.

HB 295 Secured Strong Approval by House Members

HB 295 recently garnered a decisive 105-24 vote in the Maryland House, enabling it to move to the Senate as the legislative session proceeds. The proposed legislation aims to implement more precise language that explicitly prohibits sweepstakes-based casinos.

For context, sweepstakes are a gaming category that employs a dual-currency model, enabling users to participate using virtual tokens instead of direct cash. Although these platforms permit users to buy virtual currency with real money, operators argue that the specific mechanics of these games distinguish them from the legal definition of gambling.

Conversely, HB 295 would establish a criminal ban on any gaming platform that mimics casino-style play and “utilizes multiple currency systems of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents.” The legislation provides an exemption for games that offer only non-monetary rewards.

Should the bill be enacted, offenders could face up to three years of incarceration and penalties between $10,000 and $100,000.

HB 1226 Must Pass Its Third Hearing Today If It Is to Advance

Simultaneously, another measure, HB 1226, aims to eliminate sweepstakes casinos. This bill seeks to outlaw illicit online gambling and empower local authorities to issue cease-and-desist mandates to operators in violation.

Furthermore, regulators would be authorized to implement payment and IP blocking measures to obstruct unauthorized online gaming activities.

Although the bill has cleared its second reading, it must accelerate its progress to succeed. With Maryland’s crossover deadline set for today, HB 1226 is required to clear its third reading by the end of the day.

If HB 1226 is successful, the Senate will deliberate on the future of both bills. Should either be signed into law, Maryland would join the growing list of states that have completely rejected the controversial sweepstakes model.

Minnesota is also currently exploring legislation that would criminalize the operation of sweepstakes casinos.