Maryland iGaming and Sweepstakes Bills Stall in 2026

15m.com · September 8, 2026

Maryland iGaming and Sweepstakes Bills Stall in 2026

# Maryland Ends 2026 Without iGaming Vote or Sweepstakes Ban

Maryland voters will not decide on online casino legalization in November. The state also finished its 2026 legislative session without adopting two separate bills aimed at sweepstakes casinos and illegal online gambling.

The push to legalize iGaming depended on two linked proposals introduced by Senator Ron Watson. SB 761 was the first step. It would have placed a constitutional question before Maryland voters, giving lawmakers authority to establish a regulated online casino market.

## Online Casino Question Fails to Reach Ballot

The bill never reached that stage. A planned Senate Budget and Taxation Committee hearing was canceled on March 10, and Watson withdrew the measure three days later. That effectively ended the 2026 legalization effort.

SB 885 contained the rules that would have applied if voters approved the expansion. It received a committee hearing on March 11 but did not advance before the legislature’s crossover deadline.

The General Assembly adjourned on April 13 with neither proposal moving forward.

## Proposed Market Included Revenue Sharing

SB 885 would have placed online casino gaming and internet bingo under the Maryland State Lottery and Gaming Control Commission. The proposal allowed participation beyond the state’s existing casino operators. Eligible groups could have included video lottery operators, sports wagering facilities and other Maryland-based applicants selected through competitive licensing rounds.

The financial model also differed by product. Operators would have retained:

- 80% of revenue from live dealer games; - 60% from other online casino games.

The remaining share would have gone toward state programs, including education, regulation, responsible gambling and support for casino workers. The bill also reserved up to $10 million from first-year proceeds for workers affected by any shift from retail casinos to online play.

Credit card deposits would have been prohibited.

## Sweepstakes Measures Clear House, Then Stop

A separate legislative track focused on unlicensed online gambling. HB 295 targeted interactive games using dual-currency systems that resemble casino gambling, lottery products or sports wagering. The House passed the bill 105-24 in March.

HB 1226 went further. The Maryland Illegal Online Gambling Enforcement Act proposed broader penalties and enforcement powers covering operators, promoters and other parties involved in unlawful online gambling. It passed the House by a 135-1 vote.

Both bills later reached the Senate Budget and Taxation Committee. Neither received final approval before adjournment. As a result, Maryland did not enact the new restrictions proposed in either measure during the 2026 session.

## Maryland’s Next Fight Is Likely to Stay in the Senate

Online casino expansion could not get its referendum bill through the Senate, while two gambling enforcement bills arrived from the House with large majorities and stopped in the same Senate committee. That gives the 2027 debate a fairly obvious starting point.

Support in the House alone has not been the main problem. Any renewed attempt to legalize iGaming or tighten rules around sweepstakes-style gambling will first need a workable route through the Senate Budget and Taxation Committee. Until that changes, Maryland is likely to remain in roughly the same position: regulated sports betting is available, but online casino legislation remains unfinished.

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