Maryland legislators could consider banning online sweepstakes games as they also look into online casino legalization.
Sen. Paul Corderman introduced SB 860 last week, a bill prohibiting online social sweepstakes games.
The legislation comes as Maryland lawmakers also consider legalizing online casinos.
Sweepstakes group fights back
The Social and Promotional Games Association, representing sweepstakes operators, released a statement Tuesday “emphatically” rejecting Maryland’s bill. The association notes that the legislation conflates sweepstakes platforms with illegal offshore operators.
“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 statement reads. “Social casinos with sweepstakes prizes are a legal form of entertainment enjoyed by millions of American adults. SPGA members operate within the laws governing sweepstakes promotions and uphold the highest standards of compliance, transparency and consumer protection.
“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.”
Maryland sweepstakes proposal
Corderman’s bill would require the Maryland Lottery and Gaming Control Agency to deny or revoke certain licenses under various circumstances.
The bill defines an online sweepstakes game as an internet platform that uses a dual-currency system and simulates casino-style gambling, sports betting and lottery games.
The bill would prohibit the operation of sweepstakes in the state. Violations would be misdemeanors punishable by three years in prison or a fine of not less than $10,000 and not exceeding $100,000.
Maryland regulators take action
The MLGCA last month sent 11 cease-and-desist letters to sweepstakes and illegal sports betting operators.
MGLCA Executive Director John Martin briefed the Maryland House Ways and Means Committee on the situation last month. This week, Martin sent a letter to the committee, briefing the lawmakers on how to better address the black market.
Maryland also previously sent a cease-and-desist to Bovada, which later added the state to its restricted list. The market is one of 17 where Bovada limits access.
Maryland lawmakers look at online casino
Del. Vanessa Atterbeary, who chairs the House Ways and Means Committee, introduced HB 17 to legalize online casinos. Last year, Atterbeary’s online casino legislation passed the House but died in the Senate.
This year, Sen. Ron Watson is championing a companion bill, SB 340.
Watson briefed the National Council of Legislators from Gaming States last summer on lessons learned during last session’s effort.
Mississippi lawmakers also considering
Mississippi Sen. Joey Fillingane has introduced Senate Bill 2510, which would ban sweepstakes operators in the Magnolia State. If passed, the bill would raise the penalty from a misdemeanor to a felony.
Last month, the Arizona Department of Gaming released a PSA alerting the public to potential gambling scams. In it, the ADG noted that only some “free-to-play” games are legal and directed residents to a sweepstakes page on its website.
The New York State Gaming Commission is also looking at “social gaming.”
