There are now two states in which a full legislative chamber has approved a ban on online sweepstakes casinos.
On Wednesday, Maryland’s Senate unanimously approved Sen. Paul Corderman’s SB 860, which would prohibit sweeps from operating in the state.
After the Senate Budget and Taxation Committee heard the bill and unanimously approved it by a 13-0 vote, the full Senate voted 47-0 in favor on Wednesday.
In doing so, Maryland’s Senate followed both chambers in Mississippi in approving an online sweepstakes ban.
The bill will now head to the House for hearings and a potential vote. The House Ways and Means Committee heard SB 860’s companion bill, Del. Eric Ebersole’s HB 1140, this week but no vote has been taken at the time of writing.
Not just operators targeted but also partners
The bill defines sweepstakes casino sites as games, contests or promotions that are available online or by mobile and utilize 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.”
Any offerings that simulate casino-style gaming (such as slots, video poker and table games), lottery games including draws and e-instants or sports betting would fall under the definition. The bill explicitly excludes online casino games that do not offer cash or cash equivalents as prizes.
The bill would not only criminalize the operators of sweeps-style games but also their suppliers, a bracket which includes everything from payment processors to geolocation partners and affiliates.
The Maryland Lottery and Gaming Control Agency would have the right to deny or revoke companies’ state gaming licenses if found in violation of the law. The agency sent letters of support for both bills to their respective hearings.
Maryland has already looked to force out sweeps
The push in the legislature to force sweepstakes to stop doing business in the state follows the Maryland Lottery and Gaming Control Agency taking enforcement action of its own volition.
Back in January, the regulator confirmed it sent 11 cease-and-desist letters to a range of illegal online gambling operators. Some of those were offshore casinos but others seem to fall under the sweepstakes-style category that the legislation is looking to explicily outlaw.
The likes of McLuck, Hello Millions, Jackpota, Mega Bonanza and Spree have all since taken themselves offline in the state. Others targeted reportedly include Fortune Coins, Golden Hearts Games, Zula Casino, Stake.US and Rebet.
While Senate lawmakers have been overwhelmingly in favor, the Social and Promotional Games Association (SPGA) has publicly denounced SB 860 and HB 1140, asserting that “the misguided legislation threatens to criminalize a marketing tool utilized daily by thousands of American businesses to promote everything from coffee to cheeseburgers to cryptocurrency.”
