Legislation in Maryland has been proposed to prohibit online sweepstakes casinos and their promotion if passed.
Sen. Paul Corderman introduced SB 860, which now sits in the Senate Budget and Taxation Committee.
What is SB 860 and How Will It Impact Online Sweepstakes Casinos?
Titled “An Act concerning Gaming – Prohibition of Online Sweepstakes Games and Revenue from Illegal Markets,” the bill seeks to put the onus on the State Lottery and Gaming Control Agency to deny and revoke licenses should operators be accepting revenue derived from illegal activity.
The short bill seeks to define online sweepstakes games and establish potential penalties for those who generate revenue from them.
It states that an online sweepstakes game is a “game, contest, or promotion” available on the Internet and accessible through a mobile phone, computer, or similar device.
It adds, “utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award of cash or cash equivalents, or any chance to win any prize or award or cash or cash equivalents.”
Under proposed Maryland legislation, online sweepstake casinos are not restricted to casino-style games such as slots, video poker, and table games but also include lottery games, eInstants, keno, bingo, and sports wagering.
The rules also stipulate that it would not outlaw games that do not award cash prizes or cash equivalents.
Sen. Corderman’s rules would see anyone assisting an illegal online sweepstakes casino be at risk of losing its Maryland license. This includes “a persona holding a license, or a financial institution, payment processor, geolocation provider, gaming content supplier, platform provider or media affiliate of a person holding a license.”
Simply supporting the operation or promotion of an online sweepstakes game, as previously defined, would become a breach of licensing terms.
The bill seeks an amendment to Maryland’s criminal code. Anyone violating the legislation could face imprisonment of up to three years and a minimum fine of $10,000. The maximum fine is $100,000, and a person could face financial and criminal charges.
How Other States Are Handling Online Sweepstakes Casinos
Online sweepstakes casinos have been a hot topic of conversation across the United States of America in recent weeks.
The Arizona Department of Gaming (ADG) has issued a PSA warning residents of illegal gambling operations in the state that may seek to defraud them.
The announcement was released during Identity Theft Awareness Week and aims to safeguard Arizonans’ personal and financial information.
In addition, the regulator warned that illegal online casinos and sweepstakes platforms masquerading as legitimate websites are inherently dangerous to users. The regulator makes clear that it can only take action or assist with withheld funds if the operator in question is regulated in the State.
The states of Mississippi and New Jersey have taken a different approach, proposing to regulate instead of prohibit online casino sweepstakes. New Jersey’s proposed amendments would regulate and tax online sweepstake casinos the same way as any other digital gaming medium in the state.
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