Maryland Pushes SB 112 and HB 295 to Ban Sweepstakes Casinos

Written by: Jonathan Rodriguez
Published: Thu Jan 22, 2026, 8:00 am ET
Read Time: 3 minutes

industry
Maryland legislators are again moving aggressively to tighten Maryland gambling laws by targeting sweepstakes casinos. Two companion bills, Senate Bill 112 (SB 112) and House Bill 295 (HB 295), were introduced at the start of the 2026 legislative session.
These measures aim to ban so-called interactive sweepstakes casinos, which critics say operate in a regulatory gray zone. Supporters argue the proposals will close loopholes and protect consumers.
What SB 112 and HB 295 Are Pushing For?
Lawmakers are pushing twin pieces of legislation designed to outlaw unauthorized sweepstakes gaming activity. Both proposals define certain interactive online games as illegal if they let players exchange digital credits for cash or prizes.
The bills also strengthen reporting and licensing requirements for traditional gaming operators.
Senate Bill 112
SB 112 was filed in the Senate and assigned to the Senate Budget and Taxation Committee. The Senate bill seeks to make operating or advertising illegal interactive sweepstakes platforms a criminal offense.
Under the measure, individuals or companies could face fines between $10,000 and $100,000 for violations. Possible prison terms of up to three years are included in the penalty structure.
Proponents include members of both parties and the Maryland Lottery and Gaming Control Agency, which has pushed for stronger enforcement against sweepstakes casinos.
Supporters say SB 112 addresses loopholes that allow unregulated operators to continue offering games directly to Maryland residents. The bill also imposes licensing requirements forcing applicants and existing licensees to disclose ties to interactive gaming entities.
Moreover, regulators would have the authority to deny or revoke licenses for any operator linked to unlicensed gaming ventures.
House Bill 295
HB 295 is the companion bill in the House of Delegates, introduced simultaneously with SB 112. The House Ways and Means Committee now reviews the bill.
Like its Senate counterpart, HB 295 would criminalize the operation and promotion of unauthorized interactive sweepstakes games. Its language mirrors SB 112, including strict fines and potential imprisonment for those found in violation.
The House measure also emphasizes disclosure of business relationships and financial ties between licensed operators and sweepstakes gaming entities. Proponents argue this transparency will help regulators deter illegal gaming networks from operating in Maryland jurisdictions.
Other Options for Maryland Residents
While Maryland lawmakers pursue these bans, residents still have legal alternatives for online play. Because the state does not currently allow full-scale US online casino gaming, most real-money gambling online remains off-limits.
However, Maryland players can access licensed online sports betting and participate in sweepstakes sites that emphasize free-play models under existing law.
Additionally, some players explore options like crypto casinos that operate under broader regulatory frameworks outside Maryland. These crypto-based casinos offer casino-style games using digital assets. Moreover, these platforms often offer better promos and prizes.
As the Maryland legislature debates SB 112 and HB 295 through spring, both supporters and opponents are gearing up for vigorous discussion.
The debate underscores broader national concerns about how to regulate digital gambling and protect consumers in a changing online environment.
Betting Industry News Betting Industry News Betting Industry News Betting Industry NewsMore Industry News
Kentucky Faces Lawsuit Over New Prediction Market Tax
AGLC Sets iGaming Promotion Rules for Alberta Casinos
NY Sports Betting: Knicks Run Dents May 2026 Revenue
WI & Wisconsin Tribes Start Online Sports Betting Talks
This site contains commercial content. We may be compensated for the links provided on this page. The content on this page is for informational purposes only. Betting News makes no representation or warranty as to the accuracy of the information given or the outcome of any game or event.
