EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0860*
SENATE BILL 860
C7, E1 5lr3135
CF HB 1140
By: Senator Corderman
Introduced and read first time: January 28, 2025
Assigned to: Budget and Taxation
Committee Report: Favorable
Senate action: Adopted
Read second time: February 21, 2025
CHAPTER ______
AN ACT concerning 1
Gaming – Prohibition of Online Sweepstakes Games and Revenue From Illegal 2
Markets 3
FOR the purpose of prohibiting certain persons from operating, conducting, or promoting 4
certain online sweepstakes games or supporting the operation, conducting, or 5
promotion of certain online sweepstakes games; requiring the State Lottery and 6
Gaming Control Agency to deny certain license applications and revoke certain 7
licenses under certain circumstances; requiring certain license applicants and 8
license holders to submit a certain disclosure under certain circumstances; 9
prohibiting the State Lottery and Gaming Control Commission from issuing a license 10
to certain persons or allowing the person to commence or continue operations if the 11
person or an affiliate of the person knowingly accepts revenue that is directly or 12
indirectly derived from certain jurisdictions; authorizing the Commission to deny 13
certain applications or suspend or revoke certain licenses under certain 14
circumstances; and generally relating to online sweepstakes games and illegal 15
gaming markets. 16
BY adding to 17
Article – Criminal Law 18
Section 12–115 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2024 Supplement) 21
BY adding to 22
Article – State Government 23 2 SENATE BILL 860
Section 9–1A–07(g) and 9–1A–08.1 1
Annotated Code of Maryland 2
(2021 Replacement Volume and 2024 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – State Government 5
Section 9–1A–07(g) and 9–1E–03(a)(1) 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2024 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Criminal Law 11
12–115. 12
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 13
INDICATED. 14
(2) “LICENSE” MEANS A LICENSE ISSU ED BY THE STATE LOTTERY 15
AND GAMING CONTROL COMMISSION UNDER TITLE 9, SUBTITLES 1A THROUGH 1E 16
OF THE STATE GOVERNMENT ARTICLE. 17
(3) (I) “ONLINE SWEEPSTAKES GA ME” MEANS A GAME , CONTEST, 18
OR PROMOTION THAT : 19
1. IS AVAILABLE ON THE INTERNET OR ACCESSIBL E ON 20
A MOBILE PHONE , COMPUTER TERMINAL , OR SIMILAR DEVICE ; 21
2. UTILIZES A DUAL –CURRENCY SYSTEM OF P AYMENT 22
ALLOWING THE PLAYER TO EXCHANGE THE CURRENCY FOR ANY PRIZE OR AWARD 23
OR CASH OR CASH EQUI VALENTS, OR ANY CHANCE TO WIN ANY PRIZE OR AWARD O R 24
CASH OR CASH EQUIVAL ENTS; AND 25
3. SIMULATES: 26
A. CASINO–STYLE GAMING , SUCH AS SLOT MACHINE S, 27
VIDEO POKER, AND TABLE GAMES , INCLUDING BLA CKJACK, ROULETTE, CRAPS, AND 28
POKER; 29
B. LOTTERY GAMES , INCLUDING DRAW GAMES , INSTANT 30
WIN GAMES, KENO, AND BINGO; AND 31
SENATE BILL 860 3
C. SPORTS WAGERING . 1
(II) “ONLINE SWEEPSTAKES GA ME” DOES NOT INCLUDE A G AME 2
THAT DOES NOT AWARD CASH PRIZES OR CASH EQUIVALENTS . 3
(B) (1) A PERSON MAY NOT OPERA TE, CONDUCT, OR PROMOTE AN 4
ONLINE SWEEPSTAKES G AME IN THE STATE. 5
(2) AN APPLICANT FOR A LI CENSE, A PERSON HOLDING A L ICENSE, 6
OR A FINANCIAL INSTI TUTION, PAYMENT PROCESSOR , GEOLOCATION PROVIDER , 7
GAMING CONTENT SUPPLIER, PLATFORM PROVIDER , OR MEDIA AFFILIATE O F A 8
PERSON HOLDING A LIC ENSE MAY NOT SUPPORT THE OPERATION , CONDUCTING , OR 9
PROMOTION OF AN ONLI NE SWEEPSTAKES GAME IN THE STATE. 10
(C) (1) A PERSON WHO VIOLATES THIS SECTION IS GUIL TY OF A 11
MISDEMEANOR AND O N CONVICTION IS SUBJ ECT TO IMPRISONMENT NOT 12
EXCEEDING 3 YEARS OR A FINE NOT LESS THAN $10,000 AND NOT EXCEEDING 13
$100,000 OR BOTH. 14
(2) IF A PERSON IS FOUND IN VIOLATION OF THIS SECTION, THE 15
STATE LOTTERY AND GAMING CONTROL AGENCY SHALL DENY THE PERSON’S 16
LICENSE APPLICATION OR REVOKE A LICENSE HELD BY THE PERSON . 17
Article – State Government 18
9–1A–07. 19
(G) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 20
MEANINGS INDICATED . 21
(II) “ILLEGAL INTERACTIVE G AMING MARKET ” MEANS A 22
JURISDICTION IN WHIC H INTERACTIVE GAMING IS PROHIBITED BY THE LA WS OF 23
THAT JURISDICTION . 24
(III) “INTERACTIVE GAME CONT ENT” MEANS HARDWARE , 25
SOFTWARE, APPLICATIONS, AND SERVERS USED TO OPERATE, CONDUCT, OR OFFER 26
INTERACTIVE GAMBLING GAMES. 27
(2) ON APPLICATION FOR A LICENSE UNDER § 9–1A–06(A)(2) OR (3) 28
OF THIS SUBTITLE AND ANNUALLY FOLLOWING T HE ISSUANCE OF THE L ICENSE, AN 29
APPLICANT OR A LICEN SE HOLDER SHALL SUBM IT A DISCLOSURE STAT ING, FOR THE 30
IMMEDIATELY PRECEDIN G 12–MONTH PERIOD , THE JURISDICTIONS IN WHICH THE 31
APPLICANT OR LICENSE HOLDER OR AN Y AFFILIATE OF THE A PPLICANT OR LICENSE 32 4 SENATE BILL 860
HOLDER DIRECTLY OR I NDIRECTLY ACCEPTED R EVENUE FROM THE SUPP LY OF 1
INTERACTIVE GAME CON TENT IN AN ILLEGAL I NTERACTIVE GAMING MA RKET. 2
(3) A MATERIAL MISREPRESEN TATION OR OMISSION O N THE 3
DISCLOSURE REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION M AY, IN THE 4
DISCRETION OF THE COMMISSION, RESULT IN THE DENIAL OF AN APPLICATION FO R 5
A LICENSE UNDER THIS SUBTITLE OR, IN THE CASE OF A LIC ENSE HOLDE R, 6
DISCIPLINARY ACTION , INCLUDING A SUSPENSI ON OR REVOCATION OF THE LICENSE 7
AND PENALTIES FOR OF FICERS OR BOARD MEMB ERS OF THE LICENSE H OLDER. 8
[(g)] (H) (1) An individual may not knowingly give false information or make 9
a material misstatement in an application required for any license under this subtitle or in 10
any supplemental information required by the Commission. 11
(2) An individual who violates this section is guilty of a misdemeanor and 12
on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding 13
$5,000 or both. 14
9–1A–08.1. 15
(A) THE COMMISSION MAY NOT IS SUE A LICENSE TO A P ERSON REQUIRED 16
TO BE LICENSED UNDER § 9–1A–06(A)(2) OR (3) OF THIS SUBTITLE IF THE 17
APPLICANT OR ANY OF THE APPLICANT ’S AFFILIATES, INCLUDING AN ENTITY UNDER 18
COMMON CONTROL , KNOWINGLY ACCEPTS RE VENUE THAT IS DIRECT LY OR 19
INDIRECTLY DERIVED F ROM: 20
(1) A JURISDICTION ON TH E BLACK LIST OF MONEY LAUNDERING 21
COUNTRIES ESTABLISHED BY THE FINANCIAL ACTION TASK FORCE; 22
(2) A JURISDICTION DESIG NATED AS A STATE SPONSOR OF 23
TERRORISM BY THE UNITED STATES; OR 24
(3) A JURISDICTION IN WH ICH ONLINE CASINO GA MING IS 25
PROHIBITED AND THE R EVENUE IS DERIVED FR OM ONLINE CASINO GAM ING IN THAT 26
JURISDICTION. 27
(B) (1) THE COMMISSION MAY NOT AL LOW A PERSON REQUIRE D TO BE 28
LICENSED UNDER § 9–1A–06(A)(2) OR (3) OF THIS SUBTITLE TO COMMENCE OR 29
CONTINUE OPERATIONS IF THE COMMISSION DETERMINES THAT THE PERSON OR 30
ANY OF THE PERSON ’S AFFILIATES, INCLUDING ENTITIES U NDER COMMON 31
CONTROL, KNOWINGLY ACCEPTS RE VENUE THAT IS DIRECT LY OR INDIREC TLY 32
DERIVED FROM A JURIS DICTION DESCRIBED UN DER SUBSECTION (A) OF THIS 33
SECTION. 34
SENATE BILL 860 5
(2) THE COMMISSION MAY REVOKE THE LICENSE OF A LIC ENSE 1
HOLDER THAT IS REQUI RED TO CEASE OPERATI ONS UNDER PARAGRAPH (1) OF THIS 2
SUBSECTION IF , AFTER NOTICE AND OPP ORTUNITY FO R A HEARING , THE 3
COMMISSION DETERMINES THAT IT WOULD FURTHE R THE PUBLIC INTERES T TO 4
DISCONTINUE THE OPER ATION OF THE LICENSE HOLDER IN THE STATE. 5
9–1E–03. 6
(a) (1) Unless the context requires otherwise, the requirements under §§ 7
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, 8
9–1A–19, 9–1A–20, and 9–1A–25 of this title apply to the authority, duties, and 9
responsibilities of the Commission, a sports wagering licensee, and an employee or a 10
contractor of a sports wagering licensee under this subtitle. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2025. 13
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.