Gaming - Prohibition of Online Sweepstakes Games and Revenue From Illegal Markets
SB 860 prohibits the operation, promotion, or support of “online sweepstakes games” in Maryland. The bill defines those games as internet- or mobile-accessible contests or promotions that use a dual-currency system and simulate casino-style games, lottery-style games, or sports wagering. It excludes games that do not award cash prizes or cash equivalents. The bill also makes it a misdemeanor to violate the prohibition, with criminal penalties of up to 3 years’ imprisonment and/or a fine of $10,000 to $100,000.
The bill further requires the State Lottery and Gaming Control Agency and Commission to take licensing action against persons involved in prohibited activity. Applicants, license holders, and certain related service providers are barred from supporting online sweepstakes games, and violations can lead to denial, suspension, or revocation of licenses. SB 860 also adds disclosure requirements for gaming license applicants and holders regarding revenue received from interactive gaming content in illegal interactive gaming markets, and it authorizes the Commission to deny or revoke licenses when applicants or affiliates knowingly accept revenue from certain prohibited jurisdictions, including FATF blacklisted countries, state sponsors of terrorism, or jurisdictions where online casino gaming is illegal.
SB 860 amends the Criminal Law Article and State Government Article to create a new offense targeting online sweepstakes gaming and to expand the Maryland gaming regulator’s licensing and enforcement authority. It adds new definitions, new disclosure obligations, and new grounds for license denial, suspension, and revocation for gaming-related businesses and their affiliates, including financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates. The bill also extends related licensing requirements to sports wagering licensees by incorporating the new provisions into the sports wagering regulatory framework.
The available legislative record suggests strong support for the bill. It received a favorable committee report, was adopted by the Senate, and passed third reading unanimously in the Senate by a 47-0 vote. There is no committee transcript in the provided materials showing opposition or debate, so the overall sentiment appears to have been broadly favorable and noncontroversial in the recorded votes.
The main policy concern reflected in the bill is the treatment of online sweepstakes games and the broader gaming ecosystem that supports them. The bill reaches not only operators but also affiliated businesses and service providers, which could raise concerns about the scope of liability and the practical burden on payment processors, platform providers, and other vendors. Another point of potential contention is the Commission’s authority to deny or revoke licenses based on revenue connected to certain foreign or prohibited jurisdictions, which may be viewed as a strong compliance and public-interest measure by supporters but as an expansive regulatory restriction by affected industry participants.