Playtime’s Over – Maryland Takes Aim At Sweepstakes Casinos

Our dearest Maryland – a state known for its crabcakes, inner Harbor vistas, and now regulatory legislation that is about as subtle as a polar bear in the Sahara. Picture this, if you will, the hallowed halls of the Maryland legislature as an arena where the lawmakers, donning their classy, finest tweed and moral superiority, have turned their focus onto sweepstakes casinos themselves. Yes, the virtual gaming platforms of digital coins and the vague hopes of redemption are now target number one of a pair of bold bills.

Known as SB112 for the Senate and HB295 in the House, these bills are designed to banish any interactive gaming platforms from the entire state itself. Now, these are not your grandfather’s slot machines, oh no. These are online sweepstakes casinos, which are cleverly disguised beneath the words “entertainment” and “free coins”. All while they offer what critics are arguing about whether or not it is real money excitement without any sort of regulatory oversight.

Maryland is not alone within this endeavor. Other states have already danced gleefully down this path and are even contemplating following in its footsteps. But for now, Annapolis has taken all the attention as it becomes eager to redefine what truly is to be considered as lawful gaming in this digital age.

Gather around, my dear reader, as we divulge ourselves within the complexities, conflicts, and even the absurdities of a lawmaking process that is looking to outsmart a digital loophole.

SB112 & HB295: The Dynamic Duo To Ruin Everyone’s Fun

Now it is time to delve into the curious contents within Maryland’s newest legislative contraptions. The dynamic duo of tomorrow: SB112 and HB295. It appears they have peaked with their creative wordsmithing with this one. Prepared to be dazzled: these two Maryland proposals will enact a full-on assault for these sweepstakes casinos — the type of attack that makes regulators foam at the mouth.

Criminalizing “Interactive Games”

At the core of these bills represent a simplistic idea: define and destroy (yes, it gets rather dramatic quickly) the very foundation of which these casinos are built upon. They are targeting “interactive games” (so any online or mobile game that uses multiple currency systems where one type of online coin can be used to play these casino-styled games and exchange for prizes or straight up cash). Suspiciously similar to something we may know… perhaps eerily similar to what sweepstakes casinos do with their virtual tokens, perhaps?

The definition of what can be considered an “interactive game” is delightfully broad. Slots, table games, video poker, sports betting simulations, all sorts of lottery-style games. Basically, if it flips, spins, or tempts players with a payout, that is going in that interactive game category. This legislation is looking to make it illegal to operate, promote, or support these platforms. 

The most calculated aspect of this bill is how they have steered the Maryland Lottery and Gaming Control Commission within the mix. License applicants are expected to disclose any of their ties, regardless if they are financial or not, to sweepstakes casinos. In short, SB112 and HB295 are not just seeking to outright ban these sweepstakes casinos. They are looking to erase the existence of these platforms in their entirety, and removing any space for loopholes in the process. No need for a slap on the wrist here — this is a stern absolutely not. 

Violators Will Be Dealt With… Enthusiastically

This pair of bills are not coming with any gentle reinforcements, nor are they softly requesting that you behave next time around. Oh no – these bills are coming armed to the gills that suggest these lawmakers are growing tiresome of being ignored. According to coverage from GamblingInsider, Real Money Action, and YoGonet, violations are being treated as criminal offenses. There is no room for an “Oopsies!”

Oh, it gets even more dramatic. Any operator caught running, promoting, or facilitating these sweepstakes-styled casinos in Maryland could face misdemeanor charges. These penalties can be up to three years in prison — yes, prison. And you get fined anywhere from $10,000 to $100,000. All of these because you ran a website with spinning reels and tried to be clever with your legal gymnastics. It will certainly be an awkward explanation in court.

Anyone in the involvement with the production of these casinos could find themselves in regulatory crossfires. These enforcement strategies are already seen in various U.S. states that are just wanting to choke off those unregulated gaming ecosystems.

These bills are not just looking to discourage sweepstakes casinos. They are looking to put an end to this entirely. Their message was loud and clear here: if you insist on playing games within Maryland’s gambling law framework, Maryland is more than willing to play back — loudly. 

“We’ll Deal With It Later” Finally Ran Out Of Time

So why is Maryland choosing now to suddenly clutch their pearls and declare war when it comes to sweepstakes casinos? Well, the answer is simple — the loophole got a bit too comfortable and cocky. Sweepstakes casinos have exploded when it comes to visibility and revenue in just the last two years — all while operating outside the state’s regulated framework.

Maryland already was known to have a tight ecosystem when it comes to the gaming realm. Casinos must be licensed (obviously), taxed, audited, and monitored all under the Maryland Lottery and Gaming Control Commission’s umbrella. These sweepstakes platforms are known to operate in (while still technically legal) gray areas, offering casino-styled games without paying said taxes. So, if we did actually try to see it from their perspective, that is rather unfair. Essentially, they get to cut the line.

The pressure from the industry aided this law getting brought to legislation’s attention. Regulated casinos and sportsbooks found it rather unfair that they avoid the compliance costs that everyone else must pay. Lawmakers tend to actually care about these issues when tax revenue gets in the mix. Now, they are clearing their throats loudly and have their eyes set on the sweepstakes casinos.

States such as Michigan and Washington have already begun cracking down on these similar models. Maryland’s timing is not to be considered “impulsive” but more predictable. The question was never if the loophole would be closed — but who would close it first.

Legislative Limbo: What Happens Next?

Oh how the suspense is just eating away at us! While Maryland has gone ahead and passed SB112 and HB295 out of committee, there is no need for you to start placing bets on virtual roulette just yet. If we are being transparent here, the path to lawhood is no different than watching paint dry (if not even more tedious somehow). The bills must survive votes in both chambers of legislature before the Governor can place their signature. Only then will the era of sweepstakes casinos’ misadventures in Maryland come to their conclusion.

Even after a signature is placed, it will still take some time before they go away. New guidelines must be drafted, definitions need to be given clarity, and all operators must be notified of compliance expectations. All loopholes you can think of will be closed. Operators only have a minimal window of time to scramble, rebrand, or just give up and shut down (the easiest option, but no one likes that route anymore). Assuming they are okay with accepting a three-year prison sentence. Up to them.

Meanwhile, expect a plethora of “We are not actually gambling!” comments from these sweepstakes platforms. Courts will have to get involved should these operators try to challenge the definition of “interactive games” or those currency exchanging mechanics. This is where those gray areas will finally be given center stage in courtroom drama. So if you are someone that takes pleasure in witnessing corporate panic unfold, this may be something to keep your eyes peeled for.

The next few months in Maryland will undoubtedly become a very intense chess match — now they are gambling with real coins. 

Game Over — Maryland-Edition 

So we arrive at our grand finale, my dear reader. Maryland has drawn a rather bold line in the digital sand. And sweepstakes casinos, bless their fragile, naive hearts, are on the wrong side of it all. SB112 and HB295 are not to be seen as advisory notes or polite suggestions. Oh no, these are full-blown legislative exclamation points with the subtlety of a toddler throwing a tantrum at a fine dining restaurant.

The full Maryland orchestra is more than ready to play. It will be loud, dramatic, and no room for an intermission. Their message is crystal clear: the loophole era is done for. If Maryland wants to gamble, do it the approved way, or undergo their unforgiving wrath.