A proposed piece of legislation in Maryland would expressly prohibit sweepstakes casinos in Maryland and forfeit the license of any supplier or affiliate that promotes sweeps in the jurisdiction.
Introduced by Sen. Paul Corderman, SB860 currently sits in the Senate Budget and Taxation Committee after being introduced on Jan. 28.
The relatively short bill defines sweepstakes casino sites as:
“A game, contest or promotion that:
- Is available on the internet or accesible on a mobile phone, computer terminal or similar device;
- Utlizies a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents, or any chance to win any prize or award or cash equivalents; and
- Simulates: A) Casino-style gaming such as slot machines, video poker and table games, including blackjack, roulette, craps and poker B) Lottery games, including draw games, instant games, keno and bingo; C) sports betting”
The bill explicitly excludes online casino games that do not offer cash or cash equivalents as prizes.
In addition to criminalizing operatoring an online sweepstakes gaming site, the bill criminalizes suppliers who offer services to sweeps sites within the state.
The bill specifically names payment processors, geolocation providers, affiliates and platform providers as examples of licensed suppliers who risk not only having their license revoked but also a misdemeanor conviction and a fine ranging from $10,000 to $100,000 and no more than three years in prison.
Light & Wonder has been one of the more outspoken suppliers about the need for sweepstakes regulation and prohibitions. However, many other suppliers and affiliates work regularly with sweepstakes partners. For example, Worldpay works as a payment processor for top sweepstakes company VGW. Both VGW and Worldpay have been named in a Florida federal court lawsuit alleging these sweepstakes sites are in violation of the law and are illegal gambling.
Most major affiliates in the United States promote sweepstakes sites alongside regulated gaming options.
Similar sweepstakes legislation in New Jersey and Mississippi are focused on prohibiting or licensing sweepstakes casino operators but generally do not address potential punishments or license revocations for suppliers.
The Social and Promotional Games Association released a statement opposing the measure.
“This misguided legislation threatens to criminalize a marketing tool utilized daily by thousands of American businesses to promote everything from coffee to cheeseburgers to cryptocurrency,” the group said.
“This bill is another unfortunate example of anti-competitive special interests bending the legislature to their will at the expense of innovation, small businesses, and the millions of consumers who enjoy the safe and engaging mobile games offered by social casinos.”