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The 2026 Maryland legislative session, which ends on April 13, begins on Wednesday. In the Old Line State, two legislation have already been presented to outlaw contentious internet sweepstakes casinos.
The identical texts of House Bill 295 and Senate Bill 112 are cross-filed statutes. All interactive internet gaming would be banned from illicit markets under the measures.
Sweepstakes casinos that accept dual or multiple currency payment methods that let players "exchange the currency for any prize or award or cash or cash equivalent" would be specifically prohibited by HB295/SB112.
Governor Wes Moore (D) requested the bills after the Maryland Lottery and Gaming Control Commission urged lawmakers to ban sweepstakes casinos. Many well-known sweepstakes casinos, such as Chumba, Stake, and Modo, have complied with cease and desist orders, but 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.
Coin-operated Casinos
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.
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 introduction of a second digital currency, commonly referred to 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.
Additional sweeps coins, each matching dollar for dollar, must be purchased.According to sweepstakes casinos, sweepstakes coins can only be "redeemed" for cash rewards rather than being cashed out in the conventional sense of gaming. Similar to how CVS offered customers the opportunity to win a variety of prizes during their flu vaccination promotion earlier this year, the information enables the platforms to pretend that they are running sweepstakes promotions.
The assertions made by the sweepstakes casino sector that they are not breaking any laws governing internet gambling have been strongly disputed 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
The Maryland legislation that would outlaw sweepstakes casinos would provide severe punishments for offenders.
If someone is found guilty of breaking Maryland's sweepstakes and/or illegal online gambling ban, they might face up to three years in jail as a misdemeanor. Additionally, the guilty party may be fined between $10,000 and $100,000 for each incidence.
