Maryland Ballot Again Excludes Online Gambling Legalization, as Sweepstakes Also Escape Ban

Maryland’s voters will not be asked to decide on online casino legalization this November, leaving the state’s gambling laws unchanged for another year.

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Senator Ron Watson of Prince George’s County led the latest push to expand gaming, introducing two linked bills in the 2026 session. Senate Bill 761 would have placed the question of legalization before voters, while Senate Bill 885 outlined how internet gaming and online bingo would be regulated if the referendum passed.

Both measures needed to move together, but the process stalled. SB 761 was scheduled for a hearing in the Senate Budget and Taxation Committee, only for that hearing to be canceled on March 10. Watson withdrew the bill three days later.

Without the referendum proposal, SB 885 had no path forward. Although it received a committee hearing on March 11, it failed to advance before the March 23 crossover deadline. By the time the General Assembly session closed on April 13, both bills were dead.

Local casinos continue to oppose online expansion, voicing cannibalization concerns

Maryland’s gambling industry has grown steadily since voters first approved slot machines in 2008, later adding table games and a sixth license for MGM National Harbor in 2012. 

Sports betting came much later, with retail sportsbooks opening in December 2021 and mobile wagering following soon after. Since then, sports betting alone has brought in about $140 million in tax revenue, a figure lawmakers often highlight when pushing for further expansion.

The next step was expected to be online casino gaming, but that proposal has stalled for two straight sessions despite estimates suggesting that Maryland residents spend around $7 billion each year on offshore or unregulated casino sites.

The biggest critics and opponents to the online expansion are local operators. Cordish Companies, which runs Live! Casino, and PENN Entertainment, which owns Hollywood Casino, argue that online casinos would eat into their retail business without generating enough new tax income to make up for the loss, according to local news outlet Maryland Reporter.

What could have been

Had Senate Bill 885 passed, Maryland would have created a regulated online market overseen by the State Lottery and Gaming Control Commission.

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The plan was not limited to the six casino operators. It included licenses for video lottery operators, sports wagering facilities, and even Maryland‑based applicants through competitive rounds and social equity partnerships.

Instead of a flat tax, the bill proposed a revenue‑sharing model, with licensees keeping 80% of live dealer proceeds and 60% from other games. The rest would have funded regulation, education, worker support, and responsible gambling programs.

Applicants would have needed collective bargaining or labor peace agreements, while up to $10 million in first‑year proceeds were earmarked for casino workers displaced by the expansion. Operators would also have been required to direct players to responsible gambling resources and block credit card deposits.

Despite these provisions, opposition from major casinos and the failure of the referendum bill meant the framework never advanced.

Online sweepstakes casinos survive another year in the Free State

In addition to online casino games, Maryland lawmakers also ended the 2026 session without passing restrictions on sweepstakes casinos.

Two proposals, HB 295 and HB 1226, had gained strong support in the House of Delegates but stalled once they reached the Senate. HB 295, requested by the Maryland Lottery and Gaming Control Agency, aimed to block interactive games that mimic casino play through dual‑currency systems.

HB 1226, the Maryland Illegal Online Gambling Enforcement Act, went further by expanding enforcement powers and penalties against operators and affiliates involved in illegal gambling.

Both bills cleared the House with comfortable margins, but neither advanced in the Senate Budget and Taxation Committee before adjournment. With the session closed, the measures died, and sweepstakes casinos remain unregulated in the state. 

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