Maryland lawmakers reviewed two gambling bills, engaging in detailed testimony and questions, but neither bill was brought to a committee vote.
During the House Ways and Means Committee hearing on Tuesday (11 March), no progress was made on two gambling bills—one to ban sweepstakes and another to allow historical horse racing machines at Maryland OTBs.
Although the committee scheduled another voting session for Wednesday morning, neither bill was listed on the agenda as of late Tuesday night. So far, Maryland’s legislature has not passed any gaming expansion bill this session. Both House and Senate committees have refused to advance a legal online casino bill, with lawmakers and stakeholders remaining divided, causing a legislative deadlock.
However, on 7 March, a Senate committee advanced SB 860, a bill that would ban sweepstakes platforms. These platforms currently operate without regulation and do not pay state taxes—a concern raised by casino companies that argue they should be prohibited.
Sweeps use promos just like McDonald’s does
During the hearing, sweepstakes supporters argued that their platforms are already legal under Maryland law. They warned that HB 1140, which seeks to ban sweepstakes, could also unintentionally outlaw online casinos and create broader legal issues.
Josh White of KO Public Affairs, representing Australian-based sweepstakes operator VGW, compared the games to "Candy Crush," a popular online puzzle game. He explained that both are “always free to play,” though users can purchase “game tokens for enhanced play.” White also claimed that VGW’s sweepstakes-style promotions are similar to marketing tactics used by major companies like McDonald’s and Microsoft.
Add Your Heading Text In contrast, Brad Rifkin, speaking on behalf of Light & Wonder, dismissed these claims, saying, “If it walks like a duck and quacks like a duck, it is a duck. It’s an illicit game.”
Rifkin estimated that Maryland’s illicit gaming market is worth $6 billion, which he suggested includes unregulated sweepstakes, offshore digital casinos, and illegal sportsbooks.
Sweeps-ban bill language too broad?
The most notable testimony came from attorney Jeff Ifrah, representing the Social and Promotional Gaming Association (SPGA), which includes members like Fliff, Gold Coin Group, and Woopla Gaming. As a US trade group, SPGA does not include companies like VGW or offshore operators.
Ifrah argued that under Maryland’s commercial code 13-305, sweepstakes games are already legal.
He warned that the broad language in SB 860 could unintentionally ban online casinos while leaving the black market unaffected. According to Ifrah, the bill is unnecessary and would eliminate platforms that are currently operating legally.
His argument captured lawmakers' attention as he explained existing laws, his clients’ platforms, and how the bill’s vague wording could force non-gambling companies—like McDonald’s or Starbucks—to stop offering sweepstakes promotions.
Delegate Jason Buckle sought clarification, asking, “We have to ban companies offering pure online gaming, not [games] tied to regular, legal consumer activities. Could we do that?”
OTBs need another income stream
The second gambling bill under consideration, HB 1048, would authorize historical horse racing (HHR) machines at five off-track betting (OTB) locations across Maryland. Major casino operators, including representatives from MGM and Penn Entertainment’s Hollywood brand, oppose the bill. However, OTB operators argue the machines are essential for their survival.
“We want to thrive, not just survive,” said Alyse Cohen, owner of Long Shot’s OTB in Frederick. She testified that the OTB’s betting handle has dropped 33% since online sports betting launched in Maryland in November 2022. Retail sports betting began earlier, in December 2021.
Cohen expressed disappointment, saying, “We were once hopeful that retail sports betting would provide a much-needed sales boost. Instead, we’ve seen the entirety of sports betting go online.”
In states with legalized digital sports betting, more than 95% of wagers typically occur online rather than in physical sportsbooks.
Leslie Feliz of the Greenville Consulting Group, speaking on behalf of Chesapeake Gaming Group, supported Cohen’s concerns.
“We expected retail sportsbooks to deliver sustainable profits,” Feliz testified. “In reality, online sports betting has made it challenging for Chesapeake Gaming to even secure a retail partner.”
When Maryland legalized sports betting, lawmakers included provisions to support minority- and small-business participation. Despite these efforts, the rise of online wagering has drawn customers away from retail locations. Minority-owned and smaller OTB businesses argue this shift has placed them at a disadvantage against larger casino operators.
Casinos: “Player experience is the same”
Maryland’s casino operators oppose allowing historical horse racing (HHR) machines at OTB locations, arguing the machines closely resemble their slot machines. They also point out that the proposed 15% tax rate on HHR machines is significantly lower than the tax on casino slots. According to the American Gaming Association, most Maryland casinos pay over 40% in taxes on their slot revenue.
Some stakeholders claim that HHR machines are games of skill rather than games of chance, emphasizing that the internal mechanics matter more than their appearance. “The bells and whistles are irrelevant,” one supporter argued.
However, Marta Harding, representing MGM—which operates a casino in Baltimore—disagreed, stating that the player’s experience is what truly matters.
“The way HHR machines operate isn’t the issue,” Harding said. “The issue is that the player experience is the same as with traditional slot machines.”
She warned that introducing HHR machines would create unnecessary competition for Maryland’s casinos, which contribute significant revenue to the state.
“We have a very successful relationship with the state, and we don’t believe any threat to the current model—which has provided substantial funding for the education trust fund—is justified at this time,” Harding concluded.
