Maryland lawmakers will hold hearings on March 11 on a package of bills that would legalize online casino gaming, authorize multi-state online poker, and strengthen enforcement against sweepstakes-style gambling operators. The measures, all before the Senate Budget and Taxation Committee, could place internet gaming on the November 2026 ballot if approved by the General Assembly.

Online Casino Framework

The centerpiece of the package is SB 885, which would create a regulated online casino market in Maryland. The bill proposes five-year licenses, primarily available to existing video lottery and sports wagering licensees. It sets application fees at $1 million for a standard license and $500,000 for a live-dealer-only license. Qualifying minority and social equity applicants would pay reduced fees.

SB 885 requires licensees to enter labor peace agreements and directs funding to education programs. It also adds responsible gambling safeguards. However, the bill does not establish a tax rate, leaving a key financial detail unresolved. By limiting primary applicants to incumbent casino and sportsbook operators and allowing single-skin partnerships, the proposal favors established market participants. Industry analysts note that the high upfront fees and absence of a defined tax structure may slow new entrants and affect the pace of market rollout. SB 884 separates online poker from broader casino gaming and defines it as a standalone, skill-based license. The fee structure mirrors that of SB 885.

The bill includes language allowing the governor to “enter into an agreement with other governments,” enabling Maryland to join interstate poker compacts. Such agreements would allow operators to pool players across state lines, increasing tournament prize pools and cash game liquidity.

Shared liquidity has been a central feature of multi-state agreements in other jurisdictions, including those linked to Nevada, New Jersey, and Michigan. For experienced players, larger player pools typically translate into deeper tournament fields and more consistent game availability. By treating poker separately from other casino games, lawmakers appear to be preserving its distinct regulatory status as a skill-based product.

Referendum Requirement

Under SB 761, voters would decide the issue through a referendum scheduled for November 2026. Maryland’s constitution requires voter approval to expand certain forms of gambling. If the Legislature advances the measure, the question of online casino legalization would go directly to the electorate. In parallel, SB 652 targets illegal online gambling and sweepstakes-style operators. The bill would grant regulators cease-and-desist authority and impose payment-blocking obligations on financial intermediaries. It also establishes civil and criminal penalties for unauthorized operators.

Sweepstakes platforms, which often operate in a legal gray area by using promotional contest structures, have drawn scrutiny in several states. Supporters of SB 652 argue that clearer enforcement authority would reduce consumer confusion and level the playing field for licensed operators. Critics contend that tighter enforcement may limit alternative online gaming options currently available to Maryland residents.

If approved by lawmakers and voters, the package would mark Maryland’s most significant gambling expansion in years, opening the door to online casinos and multi-state poker while tightening enforcement against unregulated sweepstakes operators.

Market and Consumer Impact

If enacted, the combined measures would reshape Maryland’s online gaming landscape. Multi-state poker authorization could expand tournament offerings and improve liquidity for serious players. At the same time, restricting licenses to incumbent operators may limit competition in the early years of the market.

Consumer protection provisions in SB 885 include deposit-limit delays, marketing restrictions during periods of self-suspension, voluntary exclusion lists, and the creation of an employee-displacement fund. Lawmakers say these measures are designed to mitigate social harms and address concerns about cannibalization of retail casino jobs. The absence of a specified tax rate remains a central open question. Operators and policy analysts note that tax levels will influence profitability, investment decisions, and the timing of any eventual launch.

All four bills are scheduled for debate on March 11 before the Senate Budget and Taxation Committee. If the committee advances the legislation and it clears both chambers, Maryland voters could decide the future of online casino gaming in 2026.