Maryland 2025 Regular Session

Maryland House Bill HB1140 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1140
6	6
7	7	HOUSE BILL 1140
8	8	C7, E1 5lr2689
9	9	CF SB 860
10	10	By: Delegate Ebersole
11	11	Introduced and read first time: February 5, 2025
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Gaming – Prohibition of Online Sweepstakes Games and Revenue From Illegal 2
19	19	Markets 3
20	20
21	21	FOR the purpose of prohibiting certain persons from operating, conducting, or promoting 4
22	22	certain online sweepstakes games or supporting the operation, conducting, or 5
23	23	promotion of certain online sweepstakes games; requiring the State Lottery and 6
24	24	Gaming Control Agency to deny certain license applications and revoke certain 7
25	25	licenses under certain circumstances; requiring certain license applicants and 8
26	26	license holders to submit a certain disclosure under certain circumstances; 9
27	27	prohibiting the State Lottery and Gaming Control Commission from issuing a license 10
28	28	to certain persons or allowing the person to commence or continue operations if the 11
29	29	person or an affiliate of the person knowingly accepts revenue that is directly or 12
30	30	indirectly derived from certain jurisdictions; authorizing the Commission to deny 13
31	31	certain applications or suspend or revoke certain licenses under certain 14
32	32	circumstances; and generally relating to online sweepstakes games and illegal 15
33	33	gaming markets. 16
34	34
35	35	BY adding to 17
36	36	Article – Criminal Law 18
37	37	Section 12–115 19
38	38	Annotated Code of Maryland 20
39	39	(2021 Replacement Volume and 2024 Supplement) 21
40	40
41	41	BY adding to 22
42	42	Article – State Government 23
43	43	Section 9–1A–07(g) and 9–1A–08.1 24
44	44	Annotated Code of Maryland 25
45	45	(2021 Replacement Volume and 2024 Supplement) 26
46	46
47	47	BY repealing and reenacting, with amendments, 27
48	48	Article – State Government 28 2 HOUSE BILL 1140
49	49
50	50
51	51	Section 9–1A–07(g) and 9–1E–03(a)(1) 1
52	52	Annotated Code of Maryland 2
53	53	(2021 Replacement Volume and 2024 Supplement) 3
54	54
55	55	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
56	56	That the Laws of Maryland read as follows: 5
57	57
58	58	Article – Criminal Law 6
59	59
60	60	12–115. 7
61	61
62	62	(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 8
63	63	INDICATED. 9
64	64
65	65	(2) “LICENSE” MEANS A LICENSE ISSUED BY THE STATE LOTTERY 10
66	66	AND GAMING CONTROL COMMISSION UNDER TITLE 9, SUBTITLES 1A THROUGH 1E 11
67	67	OF THE STATE GOVERNMENT ARTICLE. 12
68	68
69	69	(3) (I) “ONLINE SWEEPSTAKES GAME ” MEANS A GAME , CONTEST, 13
70	70	OR PROMOTION THAT : 14
71	71
72	72	1. IS AVAILABLE ON THE INTERNET OR ACCESSIBL E ON 15
73	73	A MOBILE PHONE , COMPUTER TERMINAL , OR SIMILAR DEVICE; 16
74	74
75	75	2. UTILIZES A DUAL –CURRENCY SYSTEM OF P AYMENT 17
76	76	ALLOWING THE PLAYER TO EXCHANGE THE CURR ENCY FOR ANY PRIZE O R AWARD 18
77	77	OR CASH OR CASH EQUI VALENTS, OR ANY CHANCE TO WIN ANY PRIZE OR AWARD O R 19
78	78	CASH OR CASH EQUIVAL ENTS; AND 20
79	79
80	80	3. SIMULATES: 21
81	81
82	82	A. CASINO–STYLE GAMING , SUCH AS SLOT MACHINE S, 22
83	83	VIDEO POKER, AND TABLE GAMES , INCLUDING BLACKJACK , ROULETTE, CRAPS, AND 23
84	84	POKER; 24
85	85
86	86	B. LOTTERY GAMES , INCLUDING DRAW GAMES , INSTANT 25
87	87	WIN GAMES, KENO, AND BINGO; AND 26
88	88
89	89	C. SPORTS WAGERING . 27
90	90
91	91	(II) “ONLINE SWEEPSTAKES GAME ” DOES NOT INCLUDE A G AME 28
92	92	THAT DOES NOT AWARD CASH PRIZES OR CASH EQUIVALENTS . 29
93	93	HOUSE BILL 1140 3
94	94
95	95
96	96	(B) (1) A PERSON MAY NOT OPERA TE, CONDUCT, OR PROMOTE AN 1
97	97	ONLINE SWEEPSTAKES G AME IN THE STATE. 2
98	98
99	99	(2) AN APPLICANT FOR A LI CENSE, A PERSON HOLDING A L ICENSE, 3
100	100	OR A FINANCIAL INSTITUT ION, PAYMENT PROCESSOR , GEOLOCATION PROVIDER , 4
101	101	GAMING CONTENT SUPPL IER, PLATFORM PROVIDER , OR MEDIA AFFILIATE O F A 5
102	102	PERSON HOLDING A LICENSE MAY NOT SUPPORT THE OPERATION, CONDUCT ING, OR 6
103	103	PROMOTION OF AN ONLI NE SWEEPSTAKES GAME IN THE STATE. 7
104	104
105	105	(C) (1) A PERSON WHO VIOLATES THIS SECTION IS GUILTY OF A 8
106	106	MISDEMEANOR AND ON C ONVICTION IS SUBJECT TO IMPRIS ONMENT NOT 9
107	107	EXCEEDING 3 YEARS OR A FINE NOT LESS THAN $10,000 AND NOT EXCEEDING 10
108	108	$100,000 OR BOTH. 11
109	109
110	110	(2) IF A PERSON IS FOUND IN VIOLATION OF THIS SECTION, THE 12
111	111	STATE LOTTERY AND GAMING CONTROL AGENCY SHALL DENY THE PERSON ’S 13
112	112	LICENSE APPLICATION OR REVOKE A LICENSE HELD BY THE PERSON . 14
113	113
114	114	Article – State Government 15
115	115
116	116	9–1A–07. 16
117	117
118	118	(G) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE 17
119	119	MEANINGS INDICATED . 18
120	120
121	121	(II) “ILLEGAL INTERACTIVE G AMING MARKET ” MEANS A 19
122	122	JURISDICTION IN WHIC H INTERACTIVE GAMING IS PROHIBITED BY THE LAWS OF 20
123	123	THAT JURISDICTION . 21
124	124
125	125	(III) “INTERACTIVE GAME CONT ENT” MEANS HARDWARE , 22
126	126	SOFTWARE, APPLICATIONS, AND SERVERS USED TO OPERATE, CONDUCT, OR OFFER 23
127	127	INTERACTIVE GAMBLING GAMES. 24
128	128
129	129	(2) ON APPLICATION FOR A LICENSE UNDER § 9–1A–06(A)(2) OR (3) 25
130	130	OF THIS SUBTITLE AND ANNUALLY FOLLOWING T HE ISSUANCE OF THE LICENSE , AN 26
131	131	APPLICANT OR A LICENSE HOLDER SHALL SUBMIT A DISCLOSURE STATING, FOR THE 27
132	132	IMMEDIATELY PRECEDIN G 12–MONTH PERIOD , THE JURISDICTIONS IN WHICH THE 28
133	133	APPLICANT OR LICENSE HOLDER OR ANY AFFILI ATE OF THE APPLICANT OR LICENSE 29
134	134	HOLDER DIRECTLY O R INDIRECTLY ACCEPTE D REVENUE FROM THE S UPPLY OF 30
135	135	INTERACTIVE GAME CON TENT IN AN ILLEGAL I NTERACTIVE GAMING MA RKET. 31
136	136
137	137	(3) A MATERIAL MISREPRESEN TATION OR OMISSION O N THE 32
138	138	DISCLOSURE REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION M AY, IN THE 33
139	139	DISCRETION OF T HE COMMISSION, RESULT IN THE DENIAL OF AN APPLICATION FO R 34 4 HOUSE BILL 1140
140	140
141	141
142	142	A LICENSE UNDER THIS SUBTITLE OR, IN THE CASE OF A LIC ENSE HOLDER , 1
143	143	DISCIPLINARY ACTION , INCLUDING A SUSPENSI ON OR REVOCATION OF THE LICENSE 2
144	144	AND PENALTIES FOR OF FICERS OR BOARD MEMB ERS OF THE LICENSE HOLDER. 3
145	145
146	146	[(g)] (H) (1) An individual may not knowingly give false information or make 4
147	147	a material misstatement in an application required for any license under this subtitle or in 5
148	148	any supplemental information required by the Commission. 6
149	149
150	150	(2) An individual who violates this section is guilty of a misdemeanor and 7
151	151	on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding 8
152	152	$5,000 or both. 9
153	153
154	154	9–1A–08.1. 10
155	155
156	156	(A) THE COMMISSION MAY NOT IS SUE A LICENSE TO A P ERSON REQUIRED 11
157	157	TO BE LICENSED UNDER § 9–1A–06(A)(2) OR (3) OF THIS SUBTITLE IF THE 12
158	158	APPLICANT OR ANY OF THE APPLICANT ’S AFFILIATES, INCLUDING AN ENTITY UNDER 13
159	159	COMMON CONTROL , KNOWINGLY ACCEPTS REVENUE THAT IS DIRE CTLY OR 14
160	160	INDIRECTLY DERIVED F ROM: 15
161	161
162	162	(1) A JURISDICTION ON TH E BLACK LIST OF MONEY LAUNDERING 16
163	163	COUNTRIES ESTABLISHED BY THE FINANCIAL ACTION TASK FORCE; 17
164	164
165	165	(2) A JURISDICTION DESIG NATED AS A STATE SPONSOR OF 18
166	166	TERRORISM BY THE UNITED STATES; OR 19
167	167
168	168	(3) A JURISDICTION IN WH ICH ONLINE CASINO GA MING IS 20
169	169	PROHIBITED AND THE R EVENUE IS DERIVED FROM ONLI NE CASINO GAMING IN THAT 21
170	170	JURISDICTION. 22
171	171
172	172	(B) (1) THE COMMISSION MAY NOT A LLOW A PERSON REQUIR ED TO BE 23
173	173	LICENSED UNDER § 9–1A–06(A)(2) OR (3) OF THIS SUBTITLE TO COMMENCE OR 24
174	174	CONTINUE OPERATIONS IF THE COMMISSION DETERMINES THAT THE PERSON OR 25
175	175	ANY OF THE PERSON ’S AFFILIATES, INCLUDING ENTITIES U NDER COMMON 26
176	176	CONTROL, KNOWINGLY ACCEPTS REVENUE THAT IS DIRE CTLY OR INDIRECTLY 27
177	177	DERIVED FROM A JURIS DICTION DESCRIBED UN DER SUBSECTION (A) OF THIS 28
178	178	SECTION. 29
179	179
180	180	(2) THE COMMISSION MAY REVOKE THE LICENSE OF A LIC ENSE 30
181	181	HOLDER THAT IS REQUI RED TO CEASE OPERATI ONS UNDER PARAGRAPH (1) OF THIS 31
182	182	SUBSECTION IF , AFTER NOTICE AND OPP ORTUNITY FOR A HEARI NG, THE 32
183	183	COMMISSION DETERMINES THAT IT W OULD FURTHER THE PUB LIC INTEREST TO 33
184	184	DISCONTINUE THE OPERATI ON OF THE LICENSE HO LDER IN THE STATE. 34
185	185	HOUSE BILL 1140 5
186	186
187	187
188	188	9–1E–03. 1
189	189
190	190	(a) (1) Unless the context requires otherwise, the requirements under §§ 2
191	191	9–1A–04, 9–1A–06, 9–1A–07, 9–1A–08, 9–1A–08.1, 9–1A–12, 9–1A–14, 9–1A–18, 3
192	192	9–1A–19, 9–1A–20, and 9–1A–25 of this title apply to the authority, duties, and 4
193	193	responsibilities of the Commission, a sports wagering licensee, and an employee or a 5
194	194	contractor of a sports wagering licensee under this subtitle. 6
195	195
196	196	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
197	197	1, 2025. 8