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Maryland Lottery and Gaming is sponsoring legislation in both the Senate and House aimed at banning sweepstakes casinos in the Free State. Other state legislatures are also moving to restrict these platforms, including Virginia, which is simultaneously pursuing bills to legalize online casino gaming while banning sweepstakes casinos. In 2025, six states—California, New York, New Jersey, Connecticut, Nevada, and Montana—prohibited sweepstakes casinos.
This is not the first time Maryland has attempted such a ban. Last year, SB 0860 passed the Senate Budget and Taxation Committee with little opposition, but the House Ways and Means Committee never brought the companion bill to a vote.
Maryland’s new approach to sweepstakes casinos
Other states that have successfully banned sweepstakes casinos targeted the platforms’ dual-currency model. Sweeps casinos operate using two types of currency: Gold Coins and Sweeps Coins. Gold Coins have no cash value, while Sweeps Coins can be redeemed for cash or prizes, such as gift cards. Sweeps Coins are given as bonuses when players purchase Gold Coins, allowing operators to function in a legal gray area.
The bills in Maryland do not explicitly address this dual-currency system. Instead, they focus on restricting relationships between licensed real-money online casinos and sweepstakes casino operators. The legislation states:
“FOR the purpose of prohibiting certain persons from operating, conducting, or promoting certain interactive games; requiring certain license applicants and licensees to report to the State Lottery and Gaming Control Commission any business relationship with certain persons known to support, operate, conduct, or promote certain interactive games.”
Under this framework, Maryland Lottery and Gaming would be “required to deny certain license applications and revoke certain licenses under certain circumstances,” including prohibiting the commission from issuing a license to anyone who “knowingly accepts revenue that is directly or indirectly derived from certain jurisdictions.”
Lessons from Louisiana’s sweepstakes casino ban
Louisiana has taken a similar approach. State Sen. Adam Bass introduced legislation targeting affiliates of sweepstakes casinos, threatening fines and jail time for operators and game suppliers. Although the bill passed both chambers unanimously, Gov. Jeff Landry vetoed it, citing the Louisiana Gaming Control Board’s authority to manage such issues.
In July 2025, Louisiana Attorney General Liz Murrill issued a legal opinion declaring sweepstakes casinos illegal. The state’s Department of Revenue subsequently sued WOW Vegas and VGW for nearly $45 million in taxes, interest, and penalties.
Maryland’s previous attempt and legal challenges
The wording of Maryland’s proposed bill could present challenges. Last year, Delegate Eric Ebersole’s similar legislation faced criticism during testimony before the House Ways and Means Committee.
Attorney Jeff Ifrah, representing the Social and Promotional Games Association (SPGA), and Josh White, speaking for sweeps operator VGW, argued the bill was overly broad and could have unintended consequences for non-gaming companies using sweepstakes promotions in marketing. Similarly, opponents of the current bills could contend that they might penalize game suppliers and payment processors already licensed in the state.
Sweeps operators form SGLA, push regulation
In late 2025, sweepstakes casino operators formed the Social Gaming Leadership Alliance (SGLA) and rebranded their games as “Social Plus.” The group emphasizes that the platforms provide strong consumer protections, including identity and age verification, geolocation, responsible gaming tools, and data protection. The SGLA has reached out to legislators to propose regulation and the payment of state taxes, though those efforts were unsuccessful last year.
