Maryland sweepstakes ban moves through senate committee
Legislative Developments Signal Stricter Regulations for Social Casinos in Maryland
In a significant move towards regulating the online gambling landscape, Maryland legislators have taken steps to potentially ban social casinos that employ sweepstakes prizes. On March 7, a pivotal bill aimed at prohibiting such operations advanced through the state senate’s budget and taxation committee with unanimous support.
The proposed legislation, designated as SB 860 and spearheaded by Senator Paul Corderman, aims to establish strict guidelines for online gaming. It delineates that “a person shall not operate, conduct, or promote online sweepstakes games or aid the operation, conducting, or promotion of online sweepstakes games.” This initiative reflects a growing trend for regulatory bodies to enhance control over online gambling practices and ensure consumer protection.
The swift passage of this bill, without any dissent, underscores a growing consensus among lawmakers regarding the need for tighter regulations surrounding online gambling in Maryland. In light of these developments, the Maryland Lottery and Gaming Control Agency has taken proactive measures this year by sending cease-and-desist letters to 11 online sweepstakes casinos and sportsbooks. In these communications, the agency categorized these websites as illegal and mandated that they restrict access to Maryland residents. Although the agency did not disclose the identities of these operators, reports from The Closing Line newsletter indicated that Stake.us and Rebet were among those contacted, but none complied with the cessation order at that time.
New Jersey Shifts Stance on Sweepstakes Models
In a related development, a New Jersey lawmaker has notably reversed his stance on the regulation of sweepstakes gaming. Assemblyman Clinton Calabrese has introduced legislation designed to prohibit the “sweepstakes model of wagering.” This new bill seeks to establish stringent penalties for illegal gambling operations and directs the Division of Consumer Affairs and the Division of Gaming Enforcement to enforce these penalties robustly.
This shift is particularly noteworthy, considering that Calabrese had previously introduced a bill earlier this year promoting the legalization and regulation of sweepstakes sites in a manner akin to that of existing state-licensed online casinos. Such flip-flopping on critical gambling legislation reflects the fluid dynamics of state-level gambling regulations, emphasizing the importance of continuous monitoring for industry stakeholders.
To stay informed on these evolving regulations and their implications for the gambling landscape, follow ongoing coverage from industry-focused publications. Casino Reports remains dedicated to providing in-depth insights into the regulated U.S. online casino and iGaming sectors, delivering original reports on legislative developments, industry trends, and operational best practices.
