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Sweepstakes casinos are running out of room in Maryland. Two House bills aimed at banning the industry cleared the state’s crossover deadline this week, keeping alive a legislative effort that failed to cross the finish line just one year ago.
The crossover deadline fell on March 23; missing it would have effectively killed a bill for this session. House Bill 295 cleared that hurdle March 20 with a 105-24 vote. House Bill 1226 had a tighter path, passing on the deadline day itself by a 134-2 margin.
Both measures now head to the Senate Budget and Taxation Committee. With the legislative session ending April 13, the Senate has roughly three weeks to pass the legislation into law.
The legal framework: Analyzing HB 295 and HB 1226
Both HB 295 and HB 1226 target the sweepstakes casino industry, though each takes a different legal path. HB 295 would create a new criminal offense prohibiting online and mobile games that use multiple types of virtual currency.
This applies specifically to games that allow players to exchange currency for prizes, cash, or cash equivalents while simulating casino games, lotteries, or sports wagering. Games with purely non-monetary prizes will remain free to operate.
Anyone who operates, promotes, or runs such a game could face criminal penalties. Fines range from $10,000 to $100,000, and prison time could reach three years.
HB 1226 takes a different approach. Instead of new legislation, it places sweepstakes gaming into Maryland’s current online gambling laws and labels it illegal. It also expands regulators’ enforcement powers, allowing them to issue cease-and-desist orders, impose payment processing restrictions, and block internet access for noncompliant operators.
Defining the ban: Virtual currency and monetary value
Sweepstakes casinos built their business on a workaround: Players can either earn virtual coins for free or buy them, then use those coins to redeem prizes. Because players technically do not have to spend money to play, operators have argued their products fall outside the legal definition of gambling.
Maryland lawmakers rejected that argument. During the HB 295 floor debate, bill sponsors clarified that the legislation applies only to real-money online casino games. If there is no cash element, those games remain legal.
Several sweepstakes operators appeared to see the shift coming. Funzpoints, McLuck, Hello Millions, and Spree pulled out of Maryland or froze sweepstakes play before the votes were finalized.
Maryland lawmakers have been down this road before. In 2025, the Senate approved a ban on sweepstakes casinos without opposition, but the bill died in the House Ways and Means Committee without a hearing.
This time, the House moved first and with urgency. The chamber that once stalled the effort has now become the force behind it. The only question left is whether the Senate will carry it across the finish line.
MD online casino defeat: SB 761 and SB 885 withdrawn
Despite the success of these bills, other gaming legislation failed. Two Senate measures, SB 761 and SB 885, aimed at legalizing online casinos in Maryland, did not advance. Sen. Ron Watson withdrew the main bill March 13, ending the iGaming conversation for this session.
Del. Wayne Hartman noted that lawmakers were not interested in taking up iGaming during an election year, especially with a tight budget demanding attention.
The Sports Betting Alliance, which includes DraftKings, FanDuel, and BetMGM, supported the sweepstakes ban. However, President and CEO Joe Maloney argued that banning sweepstakes casinos addresses only part of the problem. He told lawmakers a regulated online casino market would provide consumers a legal, accountable place to play, rather than pushing them toward unlicensed alternatives.
Senate referral: Tracking the bill to the finish line
HB 295 and HB 1226 both need a full Senate vote before April 13 to become law. Both bills have been referred to the Senate Budget and Taxation Committee.
The Senate passed a sweepstakes ban without opposition in 2025, suggesting an appetite for such legislation. Whether that translates into action this session will depend on how the Senate prioritizes both bills in the brief time remaining.
