HB1140 would prohibit the operation, conduct, and promotion of “online sweepstakes games” in Maryland. The bill defines those games broadly as internet- or mobile-accessible contests or promotions that use a dual-currency system and simulate casino-style games, lottery games, or sports wagering, but it excludes games that do not award cash prizes or cash equivalents. It also extends the prohibition beyond the game operator itself to certain supporting entities, including license applicants and holders, financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates that support such games.
The bill creates criminal penalties for violations, making them a misdemeanor punishable by up to three years in prison, a fine of $10,000 to $100,000, or both. It also directs the State Lottery and Gaming Control Agency and Commission to deny license applications or revoke licenses when a person is found in violation. In addition, applicants and licensees under Maryland’s gaming laws would have to disclose whether they or their affiliates accepted revenue from supplying interactive game content in illegal interactive gaming markets, and material misstatements could lead to denial, suspension, or revocation.
HB1140 would also restrict licensing and continued operations for certain gaming-related businesses that knowingly accept revenue derived from jurisdictions on the Financial Action Task Force money-laundering blacklist, jurisdictions designated by the United States as state sponsors of terrorism, or jurisdictions where online casino gaming is prohibited. The Commission would be barred from issuing or continuing licenses in those circumstances, and could revoke licenses after notice and hearing if doing so would further the public interest.
The bill’s overall effect is to tighten Maryland’s gaming regulatory framework, especially for online and interactive gaming businesses and their vendors. It adds new criminal law provisions and expands the Commission’s oversight, disclosure, and enforcement authority over sports wagering and interactive gaming licensees, affiliates, and service providers.
No committee transcript or vote history was provided, so the available context does not show formal debate or recorded support/opposition. Based on the bill text alone, the measure appears aimed at curbing unregulated sweepstakes gaming and limiting ties to illegal or high-risk foreign gaming markets, while likely drawing scrutiny from online gaming operators, payment processors, and related vendors affected by the new prohibitions and disclosure requirements.
HB1140 would add a new criminal prohibition in the Criminal Law Article and amend Maryland’s gaming regulatory statutes to require disclosures, deny or revoke licenses, and restrict operations for certain gaming-related businesses. It would directly affect online sweepstakes operators, gaming license applicants and holders, affiliates, financial institutions, payment processors, geolocation providers, content suppliers, platform providers, media affiliates, and sports wagering licensees under the State Lottery and Gaming Control Commission’s jurisdiction.
No committee discussion or vote record was provided, so there is no documented legislative sentiment from hearings or roll calls. From the bill text, the measure appears to be a regulatory and enforcement-focused proposal intended to address perceived illegal online gaming activity and revenue flows from prohibited jurisdictions, suggesting a generally restrictive posture toward sweepstakes-style gaming and offshore or illegal-market connections.
The main points of contention are likely to be the breadth of the definition of “online sweepstakes game,” the inclusion of support entities such as payment processors and media affiliates, and the Commission’s authority to deny, suspend, or revoke licenses based on revenue sources tied to certain jurisdictions. Gaming operators and vendors may view the bill as overbroad or burdensome, while supporters would likely argue it is necessary to prevent disguised gambling, protect the regulated market, and block ties to illegal or high-risk jurisdictions.