Published on: March 24, 2026, 07:57h.
Updated on: March 24, 2026, 07:57h.
- Maryland will not legalize iGaming in 2026
- State legislators have passed a bill aimed at banning sweepstakes casinos
- Sweepstakes casino operators have largely ignored cease-and-desist orders
In 2026, online casinos will not receive legalization in Maryland. Instead, lawmakers are concentrating on officially banning unauthorized online slot machines and table games.
Senator Ron Watson (D-Prince George’s County) has been advocating for iGaming for several years. In 2026, he presented two legislative proposals aimed at establishing a regulatory framework for Maryland’s six commercial casinos to engage in online gambling. This form of gambling expansion would necessitate voter approval via a statewide referendum.
Recently, Watson retracted Senate Bill 761, which sought to create an internet gaming referendum. This decision followed the cancellation of a planned hearing on the bill by the Senate Budget and Taxation Committee on March 10.
While Watson’s Senate Bill 885 still exists, it is reliant on the success of a referendum for its implementation of iGaming. However, with the scrapping of SB761, the regulatory framework appears to be effectively halted.
Currently, only eight states have legalized iGaming: Connecticut, Delaware, Maine, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Notably, Maine authorized iGaming in January, granting exclusive online casino rights to its federally recognized tribes.
Potential Ban on Sweepstakes Casinos
At this time, Maryland’s lawmakers are prioritizing the restriction of gaming rather than its expansion.
House Bill 295, introduced by the House Ways and Means Committee at the request of the Maryland Lottery and Gaming Control Agency, aims to prohibit sweepstakes casinos. This legislation would prevent social gaming websites and applications from using “multiple currency systems of payment” that allow players to “exchange the currency for any reward.”
Sweepstakes casinos argue that they are simply platforms for free-to-play social gaming. Although players are provided with virtual currency, these platforms often employ an additional digital token known as ‘sweeps coins’, which can be purchased and used like real money, allowing credits to be redeemed for cash.
Operators of sweepstakes claim their business model is akin to traditional sweepstakes, where customers buy entries for a chance to win prizes, similar to McDonald’s popular Monopoly campaign.
However, critics argue that sweepstakes casinos are merely clever circumventions of state laws. HB295 aims to define online sweepstakes as illegal in Maryland, with penalties for violators ranging from fines of $10,000 to $100,000 and potential prison sentences of up to 3 years.
The Maryland House of Delegates passed HB295 on March 20 with a vote of 105-24. The bill has since been referred to the Senate Budget and Taxation Committee, with the Maryland General Assembly’s 2026 session set to conclude on April 13.
Ignored Cease-and-Desist Orders
Numerous cease-and-desist letters have been sent by the Maryland Lottery and Gaming Control Agency to operators of sweepstakes casinos. Yet, many continue to keep their websites and applications accessible within the state. For instance, Chumba Casino was put on notice last November.
“Our review of your site indicates that Chumba Casino is providing online poker, casino games, and sweepstakes. These offerings encompass gaming elements: consideration, chance, and prize. Essentially, this constitutes gaming. According to Maryland law, gaming is prohibited unless expressly permitted. The gaming you are offering is not legally authorized in Maryland,” wrote Michael Eaton, managing director of gaming at MLGCA, in correspondence with Chumba.
Eaton instructed Chumba Casino to stop offering online poker, casino games, and sweepstakes in Maryland; however, as of now, Chumba remains operational.