Two bills that address illegal gambling, including a ban on sweepstakes casinos, passed the Maryland House on Monday.
HB 1226 would ban sweepstakes casinos and grant the Maryland Lottery & Gaming Control Agency ability to pursue legal action against operators that do not respond to their cease-and-desists. It passed the House 134-2, but has not yet been assigned to a Senate committee.
Its Senate companion had been heard in the Budget and Taxation Committee, but did not meet the legislature’s crossover deadline.
The House also voted 105-24 to pass HB 295. It would leave anyone operating illegal online gambling open to misdemeanor charges, including three years in jail and a fine between $10,000 to $100,000 each count. It now heads to the Senate Budget and Taxation Committee.
Monday was the crossover deadline, which means any hopes of legalizing online casinos in Maryland are likely dead for this year. The legislature adjourns April 13.
Lottery, casinos lobbied against sweepstakes
Maryland’s gaming regulator and some of its land-based casino operators spoke in favor of the bills at multiple hearings.
Caesars, Cordish Companies and Penn Entertainment all had representatives at a March 5 Judicial Committee hearing. Cordish Executive VP and General Counsel Mark Stewart praised HB 1226 for not just targeting sweepstakes operators but their suppliers as well.
Only about a third of the 75 companies the MLGCA sent cease-and-desists actually pulled out of Maryland, Director John Martin said at a Feb. 5 Ways and Means Committee hearing. Current law does not allow MLGCA to act beyond the cease-and-desists.
Caesars: regulating sweeps not an option
As in other states this year, sweepstakes operators and supporters have called for regulation of the games, saying they are happy to pay taxes to remain in the state.
In February, Caesars Horseshoe‘s Brad Rifkin questioned why they should get to the front of the online casino line.
“You may hear from opponents who come in and say, ‘Well, tax us and regulate us,’” Rifkin said. “Well, as we know, iGaming is not legal yet and for them to get the front seat in an internet gaming conversation is frankly something I hope this committee sees through.”
