The push to ban sweepstakes gaming is picking up steam in two U.S. states.
The Maryland Senate passed SB 860 on the third reading with a unanimous vote of 47-0 on Wednesday and has been moved to the House of Representatives’ Ways and Means Committee.
Sen. Paul Corderman’s legislation calls for “prohibiting a person from operating, conducting, or promoting online sweepstakes games.” The Maryland Lottery and Gaming Control Agency would also be banned from issuing licenses for sweepstakes gaming and can revoke or deny illegal operator applications.
SB 860 was cross-field with HB 1140, which contains the same wording as its Senate counterpart. The House bill is still waiting for a committee vote. SB 860 is scheduled to be heard in the House on March 20.
Sweepstakes gaming allows customers to play with free coins but more can be purchased and exchanged for cash and prizes. This form of online casinos that mimic offshore and legal iGaming have come under scrutiny by trade groups, tribal leaders, lawmakers, and regulators in several U.S. states over the last year.
Defining sweepstakes
The legislation defines sweepstake games as mobile contests or promotions that use two currencies and allow players to exchange one of them for cash or equivalent prizes.
Sweepstake slots, table games, video poker, sports betting, lottery games, keno, and bingo would be outlawed. However, games that don’t award cash or equivalent prizes aren’t included in the bill.
Violation of the proposed law would result in a misdemeanor charge, while conviction could lead to a maximum of three years in prison and/or a fine between $10,000 and $100,000.
Magnolia State bill passes through House
Mississippi’s House of Representatives passed Senate Bill 2510 on Wednesday that would make sweepstakes gaming illegal in the Magnolia State by a vote of 83-19.
Sen. Joey Fillingane’s SB 2510 amends the Mississippi Code of 1972 that bans brick-and-mortar sweepstakes cafes to include a prohibition on online sweepstakes-style casino games. The legislation also increases the violation from a misdemeanor to a felony and comes with a $100,000 fine and/or up to 10 years in prison.
Before it was voted on and sent back to the Senate for concurrence, House Gaming Committee chair Rep. Casey Eure added language to SB 2510 that would also legalize online sports betting.
The Senate has already rejected the House’s sports betting attempt, leaving SB 2510's fate unknown. Legislators have until March 21 to approve, reject, stall, or confer with the other side of the assembly on bills pertaining to budgets and taxation.
