Jackson/Annapolis, Jan 30: Lawmakers in Mississippi and Maryland took different procedural steps this week on legislation aimed at curbing online sweepstakes casinos, with Mississippi moving to toughen criminal penalties while Maryland held a wide-ranging hearing without a vote.
In Mississippi, the Mississippi Senate Judiciary Committee, Division B amended and advanced Senate Bill 2104, recommending it proceed to the next stage of the legislative process. The bill mirrors legislation approved by the Senate last year but stalled in conference.
Under SB 2104, operating an illegal online gambling platform – including sweepstakes casinos – would be elevated to a felony, punishable by fines of up to $100,000 per conviction and up to 10 years in prison. Existing misdemeanor penalties for individual players and promoters would remain unchanged.
“It’s a criminal penalties bill,” said Jay McDaniel of the Mississippi Gaming Commission, who testified before the committee. He said current penalties – a misdemeanor carrying up to a $500 fine and 90 days in jail – were crafted before modern online platforms emerged and have proven ineffective against large operators. “With the proliferation of online gaming, we have bigger fish to fry,” he said. “Misdemeanor penalties really just don’t scare them away.”
Lawmakers adopted amendments narrowing the bill’s scope to focus criminal liability on operators rather than technology or service providers. The revised language “protects the platforms from being the ones charged with the penalties, but it actually goes after the operator,” McDaniel said. The bill also expands forfeiture authority, allowing prosecutors to pursue funds and assets tied to online gambling activity. “Since they’re sending it through a platform, we could also go after the funds – anything associated with that crime,” he said. The amended bill advanced without opposition.
In Maryland, the Maryland Senate Budget and Taxation Committee held a hearing on Senate Bill 112, which would prohibit unlicensed “interactive games,” including sweepstakes casinos, but did not take a vote.
The Maryland Lottery and Gaming Control Agency told lawmakers it lacks effective tools to shut down illegal online platforms, relying largely on cease-and-desist letters. “Illegal online games are growing exponentially in Maryland because of ambiguities and loopholes in existing statutes,” said agency director John Martin. He said the commission has sent 75 cease-and-desist letters, with roughly a third of operators complying. “We got about a 33% success rate,” he said, adding that “there are significantly more bad actors in the space.”
Supporters of SB 112 said the bill would close statutory gaps and improve coordination with law enforcement. Commercial casino operators backed the measure, calling it a step toward stronger enforcement. Industry representatives from the sweepstakes and social gaming sector opposed the bill, warning it would criminalise businesses that have operated in the state for years and arguing for regulation instead of prohibition, citing potential tax revenues of up to $20 million annually.
Some lawmakers pushed back on those claims, stressing the bill’s enforcement focus. “If you’re upstanding actors in this area, then you would not be fearful of having this bill,” one lawmaker said, adding it would ensure non-compliant operators are not exploiting existing loopholes. Lawmakers also rejected comparisons to promotional sweepstakes, noting that games like McDonald’s Monopoly do not involve slots or other casino-style play.
The diverging approaches highlight the ongoing debate among U.S. states over how best to address the rapid growth of online sweepstakes casinos amid evolving digital gambling markets.
