Sweepstakes casinos: legal or not in Maryland?
Not clearly authorized; higher-risk and commonly restricted. Maryland regulators have taken enforcement action against sweepstakes-style platforms and have emphasized a narrow view of what online gambling activity they consider permitted, centered on licensed sports wagering and fantasy contests.[2] A 2026 proposal (HB 295) would prohibit operating or promoting certain “interactive games” that use multiple currency systems and allow players to exchange currency for prizes or cash equivalents, if enacted.[3]
No explicit sweepstakes-casino authorization is identified here, and the combination of enforcement pressure plus targeted bill language makes Maryland a state where access can change quickly.
What’s going on in Maryland right now
Current activity points in one direction: continued scrutiny of sweepstakes-style online models, paired with legislative attempts to define and prohibit online games that use dual or multiple currencies tied to prize or cash-equivalent redemption.
- A 2025 proposal (SB 860) defined an “online sweepstakes game” around a dual-currency system, internet access, prize or cash-equivalent redemption, and simulation of casino-style or similar gambling content, with criminal penalties included in the bill text.[4]
Gambling in Maryland in 2026
Maryland has a state lottery, a regulated sports wagering market, and six privately owned commercial casinos under state oversight.[1] Lottery, casinos, and sports wagering also represent a meaningful state revenue channel, which helps explain why Maryland keeps tight boundaries around what gets licensed and what does not.[5]
- State lottery
- Six commercial casinos (no tribal casinos identified here)
- Regulated sports wagering
- Fantasy contests referenced by officials as permitted online activity
- No regulated real money online casino framework identified here
Why some online casinos block Maryland players
Operators often restrict Maryland because state messaging and enforcement have treated many casino-style online models as outside what Maryland authorizes, even where real money internet casino gaming has not been set up as a regulated market.
- Practical risk: Cease-and-desist activity and public warnings create a “remove access first” posture for many compliance teams.
- Legislative risk: Recent proposals define multi/dual-currency systems with prize or cash-equivalent redemption as a target, which increases uncertainty for products that rely on redemption mechanics.
- Inference: Some platforms choose to exclude Maryland rather than adjust currency design, redemption flows, or marketing language to avoid matching proposed definitions.
- Inference: Geolocation, payments, and identity checks may tighten when a state publicly scrutinizes these models, increasing withdrawal friction or account reviews.
Sweepstakes winnings and taxes in Maryland
Not tax advice. At the federal level, gambling income (including certain non-cash prizes) generally must be reported, and tax forms may apply depending on the win type and amount.[6] Maryland guidance also discusses withholding and reporting triggers for certain gambling prizes, including examples tied to higher-dollar winnings and different treatment for residents versus non-residents.[7]
- Keep a basic log: date, platform, amount redeemed, and any fees
- Save redemption confirmations and any tax forms received
- Do not assume “no withholding” means “no tax owed”
- Set aside funds for potential federal and state tax
- Check withholding and reporting rules when larger prizes are involved
Responsible play in Maryland
If play starts feeling hard to control, reaching out for support can help.
- Maryland help: 1-800-GAMBLER (1-800-426-2537) and statewide resources through the Maryland Center of Excellence on Problem Gambling.[8]
- National Council on Problem Gambling: 1-800-522-4700
- SAMHSA National Helpline: 1-800-662-4357
- Gamblers Anonymous: local meeting listings vary