Maryland lawmakers ended the 2026 legislative session without approving a ban on sweepstakes casino platforms, leaving the sector active in the state despite strong support for restrictions earlier in the year.

Two separate House measures designed to prohibit dual-currency sweepstakes gaming advanced through the House of Delegates but failed to move through the Senate before the session concluded on April 13. The outcome marked another year in which proposed action against the sector stalled, though the blockage came in the opposite chamber from 2025.

Last year, a similar proposal passed the Senate and did not clear the House. In 2026, the House approved two bills, but neither emerged from the Senate Budget and Taxation Committee.

The result was welcomed by industry groups representing social casino operators, while regulators that backed legislative action remain without new enforcement tools.

House Passed Two Different Bills

The first proposal, House Bill 295, came from the House Ways and Means Committee at the request of the Maryland Lottery and Gaming Control Agency. Gov. Wes Moore supported the bill, indicating he likely would have signed it if it reached his desk.

That measure targeted online platforms that simulate gambling while using multiple forms of virtual currency. Lawmakers backing the bill argued such systems mirror gambling mechanics while operating outside Maryland’s regulated market.

HB 295 passed the House on March 20 by a 105-24 vote.

A second proposal, House Bill 1226, took a broader and more direct route. Titled the Maryland Illegal Online Gambling Enforcement Act, it would have specifically identified sweepstakes casinos as illegal gambling activity.

That bill also proposed wider enforcement authority for regulators and the attorney general, including cease-and-desist orders, injunctions, and possible civil or criminal penalties for operators, affiliates, promoters, and service providers linked to prohibited platforms.

HB 1226 passed the House on March 23 by a 134-2 margin.

Despite the strong House support, neither measure advanced further before the legislative deadline.

Maryland regulators had argued that existing enforcement tools were insufficient. During hearings on companion legislation, Maryland Lottery and Gaming Control Agency Director John Martin said the agency had already issued dozens of cease-and-desist letters to sites believed to violate state gambling law.

According to testimony, roughly two-thirds of recipients did not comply. Separate reporting said around 80 letters had been sent recently, with only about 25% of recipients responding positively.

Those figures were used to support the case for statutory changes that would give authorities clearer powers and stronger penalties.

Without new legislation, regulators are expected to continue relying on current enforcement mechanisms.

Industry Group Celebrates Outcome

The Social Gaming Leadership Alliance, which opposed the bills throughout the process, described the end of the session as a positive result.

As reported by SBC Americas, Managing Director Sean Ostrow said: “We are pleased with this result in Maryland and want to thank the Maryland lawmakers who took the time to thoroughly consider this issue.”

He added: “Over multiple hearings and dozens of meetings, SGLA addressed false allegations by casino interests by demonstrating that the Social Plus industry already offers strong consumer protections and contributes to Maryland’s economy, while pushing back against efforts to misrepresent long-standing lawful activity as gambling.”

Ostrow also reportedly said the group wants to continue discussions in the next legislative cycle.

“We are eager to work with lawmakers and regulators in 2027 to codify SGLA’s best practices for the broader social games industry, which can generate significant tax revenue while keeping consumers safe online.”

The group has argued that regulation, rather than prohibition, would be a better approach.

Maryland’s inaction stands in contrast with several other states that moved against sweepstakes casinos in 2026.

Indiana approved legislation signed by Gov. Mike Braun that will ban certain multi-currency sweepstakes products from July 1. Maine also enacted new restrictions after Gov. Janet Mills signed gambling-related legislation that included a sweepstakes gaming prohibition.

Louisiana lawmakers have also advanced multiple bills targeting the sector, including one proposal that would classify some gambling-style sweepstakes activity under racketeering law.

With momentum continuing elsewhere, Maryland may revisit the issue when lawmakers return in 2027.