Maryland Lawmakers Refile Bills to Sweep Away Sweepstakes Casinos
On Wednesday, Maryland lawmakers will begin their 2026 legislative session, which will last until April 13. There are already two laws that aim to outlaw contentious online sweepstakes casinos in the Old Line State.
The identical texts of House Bill 295 and Senate Bill 112 are cross-filed statutes. All interactive online gambling from illicit markets would be forbidden by the bills.
Sweepstakes casinos using dual or multiple currency payment systems that permit players to "exchange the currency for any prize or award or cash or cash equivalent" would be expressly prohibited by HB295/SB112.
Gov. Wes Moore (D) requested the bills after the Maryland Lottery and Gaming Control Commission urged the legislature to ban sweepstakes casinos. While many well-known sweepstakes casinos, such as Chumba, Stake, and Modo, have complied with cease and desist orders, many others have not, according to the state gaming authority. The state lottery and gaming governor claims that a law prohibiting sweepstakes casinos is necessary because they keep opening.
Casinos with Two Currencies
According to the Social Gaming Leadership Alliance, sweepstakes casinos run social gaming websites and applications that are free to play. Free "gold" coins—credits that cannot be exchanged for cash—are given to players.
It is true that players can play continually without making a deposit thanks to the social gaming features of sweepstakes casinos.However, users can now play for real money thanks to the availability of a second digital currency known as sweeps coins. The sweepstakes websites frequently add a few sweepstakes coins to the player's account in an attempt to persuade them to switch from social to real money gaming.
It is necessary to buy additional sweeps coins, each of which matches dollar for dollar. Sweepstakes casinos assert that sweepstakes coins can only be "redeemed" for cash rewards rather than cashed out in the conventional gaming sense. Similar to how CVS launched a flu shot promotion earlier this year that offered clients a chance to win various prizes, the detail enables the platforms to claim that they are operating sweepstakes contests.
The sweepstakes casino industry's arguments that they are not breaking internet gambling regulations have been largely rejected by state attorneys general, legislators, and gaming regulators. One such organization is the Maryland Lottery and Gaming Control Commission.
“These offerings contain the elements of gaming: consideration, chance, and prize. In other words, it is gaming,” Michael Eaton, managing director of gaming at the state agency, wrote to Chumba in November 2025.
“Under Maryland law, gaming is illegal unless it is expressly authorized. The gaming that is being offered through your site is not legally authorized in Maryland,” Eaton advised.
Suggested Penalties
Sweepstakes casino bans in Maryland would impose severe fines on offenders.
A misdemeanor and jail sentence would be imposed on anyone found guilty of breaking Maryland's sweepstakes and/or illicit online gambling prohibitions.
