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SB 860

Gaming - Prohibition of Online Sweepstakes Games and Revenue From Illegal Markets

2025 Regular Session Introduced by Paul Corderman

Maryland bans online sweepstakes games that mimic gambling and blocks licenses for firms earning revenue from illegal or high-risk interactive gaming markets.

Hearing 3/20 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · SB 860

SB 860 — Gaming: Prohibition of Online Sweepstakes Games and Revenue From Illegal Markets (Maryland)

Status & timing
- Introduced: Jan. 28, 2025 (Sen. Corderman).
- Assigned to: Budget & Taxation.
- Effective date in bill: July 1, 2025.
- Companion: HB 1140.

Purpose / intent
- To prohibit so‑called “online sweepstakes” games that mimic regulated gambling but operate outside the State’s gaming regulatory framework, and to block licensing or continued operation in Maryland by persons or firms that knowingly receive revenue from illegal interactive gaming markets or certain high‑risk jurisdictions.

Key definitions
- “Online sweepstakes game”: an Internet or mobile game/contest/promotion that (a) uses a dual‑currency payment system exchangeable for prizes or cash (or the chance to win them), and (b) simulates casino‑style games (slots/video poker/table games), lottery‑style games (draws, instant win, keno, bingo), or sports wagering. Excludes games that do not award cash or cash equivalents.

Major provisions
1. Prohibition
- It is unlawful for any person to operate, conduct, or promote an online sweepstakes game in Maryland.
- License applicants, licensees, and specified affiliates (financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, media affiliates, etc.) may not support the operation, conduct, or promotion of such games.

  1. Criminal and licensing consequences

    • Violation is a misdemeanor punishable by up to 3 years imprisonment and/or a fine of $10,000 to $100,000.
    • The State Lottery and Gaming Control Agency (SLGCA) must deny applications or revoke licenses of persons found in violation.

  2. Disclosure requirement

    • Applicants for certain gaming licenses and license holders must annually disclose the jurisdictions in which they (or any affiliate) directly or indirectly accepted revenue from supplying interactive game content in an “illegal interactive gaming market” during the prior 12 months.
    • Material misrepresentations or omissions may lead to denial, suspension, or revocation, and disciplinary penalties (including actions against officers/board members).

  3. Licensing bar for revenue from risky/illegal jurisdictions

    • The State Lottery and Gaming Control Commission (SLGCC) may not issue (and may prevent continued operations by) licenses for applicants or affiliates that knowingly accept revenue derived from:
      • Jurisdictions on the Financial Action Task Force (FATF) money‑laundering blacklist;
      • Jurisdictions designated by the U.S. as state sponsors of terrorism; or
      • Jurisdictions where online casino gaming is prohibited and the revenue was derived from online casino gaming in that jurisdiction.
    • SLGCC may revoke licenses after notice and hearing if continued operation would not serve the public interest.

Scope / who is affected
- Regulated gaming industry participants: operators, manufacturers, suppliers, platform providers, payment processors, geolocation services, media affiliates, financial institutions, and sports‑wagering licensees.
- Businesses or affiliates deriving revenue from interactive gaming activity in jurisdictions where such activity is illegal or otherwise high‑risk.

Enforcement & penalties
- Criminal misdemeanor penalties (imprisonment and/or significant fines).
- Administrative licensing penalties (denial, suspension, revocation) and possible civil/administrative sanctions against corporate officers.

Fiscal & policy notes
- Department of Legislative Services fiscal analysis: no material effect on State finances or operations expected. The bill is framed as protecting Maryland’s regulated gaming market, strengthening anti‑money‑laundering and market‑integrity measures.

Practical effect
- Closes a regulatory gap by banning sweepstakes‑style gaming that imitates regulated gambling, requires transparency about revenue sources, and empowers regulators to refuse or rescind licenses for entities tied to illegal or high‑risk gaming markets. Businesses that have operated in or received revenue from illegal interactive‑gaming jurisdictions may be disqualified from Maryland licensure.

Compiled from official sources — confirm details with the bill’s official record.

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