A proposed Maryland legislation, Bill SB860, introduced by Sen.Paul Corderman, seeks to expressly prohibit sweepstakes casinos in the state and forfeit the license of any supplier or affiliate that promotes sweeps in the jurisdiction. The bill sits in the Senate Budget and Taxation Committee after being introduced on January 28.
The bill defines sweepstakes casino sites as:
“A game, contest or promotion that:
- Is available on the internet or accessible on a mobile phone, computer terminal, or similar device;
- Utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents, or any chance to win any prize or award or cash equivalents; and
- Simulates: A) Casino-style gaming such as slot machines, video poker, and table games, including blackjack, roulette, craps, and poker B) Lottery games, including draw games, instant games, keno, and bingo; C) Sports betting.”
The bill explicitly excludes online casino games that do not offer cash or cash equivalents as prizes. In addition to criminalizing operators of online sweepstakes gaming sites, the bill criminalizes suppliers who offer services to sweep sites within the state.
The bill specifically names payment processors, geolocation providers, affiliates, and platform providers as examples of licensed suppliers who risk not only having their license revoked but also a misdemeanor conviction and a fine ranging from $10,000 to $100,000 and no more than three years in prison.
Light & Wonder has been one of the more outspoken suppliers about the need for sweepstakes regulation and prohibitions. However, many other suppliers and affiliates work regularly with sweepstakes partners.
For example, Worldpay works as a payment processor for top sweepstakes company VGW. Both VGW and Worldpay have been named in a Florida federal court lawsuit alleging these sweepstakes sites are in violation of the law and are illegal gambling. Most major affiliates in the United States promote sweepstakes sites alongside regulated gaming options.
Similar sweepstakes legislation in New Jersey and Mississippi are focused on prohibiting or licensing sweepstakes casino operators but generally do not address potential punishments or license revocations for suppliers.
