Gaming - Prohibition on Interactive Games and Revenue From Illegal Markets

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 112
C7, E1 6lr0007
(PRE–FILED) CF HB 295
By: Chair, Budget and Taxation Committee (By Request – Departmental – Lottery
and Gaming Control Agency)
Requested: September 16, 2025
Introduced and read first time: January 14, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Gaming – Prohibition on Interactive Games and Revenue From Illegal Markets 2

FOR the purpose of prohibiting certain persons from operating, conducting, or promoting 3
certain interactive games; requiring certain license applicants and licensees to report 4
to the State Lottery and Gaming Control Commission any business relationship with 5
certain persons known to support, operate, conduct, or promote certain interactive 6
games; requiring the Commission to deny certain license applications and revoke 7
certain licenses under certain circumstances; requiring certain license applicants 8
and licensees to submit a certain disclosure under certain circumstances; prohibiting 9
the Commission from issuing a license to certain persons or allowing the person to 10
commence or continue operations if the person or an affiliate of the person knowingly 11
accepts revenue that is dir ectly or indirectly derived from certain jurisdictions; 12
authorizing the Commission to deny certain applications or impose certain sanctions 13
under certain circumstances; and generally relating to interactive games and illegal 14
gaming markets. 15

BY adding to 16
Article – Criminal Law 17
Section 12–115 18
Annotated Code of Maryland 19
(2021 Replacement Volume and 2025 Supplement) 20

BY adding to 21
Article – State Government 22
Section 9–1A–07(g) and 9–1A–08.1 23
Annotated Code of Maryland 24
(2021 Replacement Volume and 2025 Supplement) 25

BY repealing and reenacting, with amendments, 26
2 SENATE BILL 112

Article – State Government 1
Section 9–1A–07(g) and 9–1E–03(a)(1) 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MA RYLAND, 5
That the Laws of Maryland read as follows: 6

Article – Criminal Law 7

12–115. 8

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10

(2) “COMMISSION” MEANS THE STATE LOTTERY AND GAMING 11
CONTROL COMMISSION. 12

(3) (I) “INTERACTIVE GAME ” MEANS A GAME , CONTEST, OR 13
PROMOTION THAT: 14

1. IS AVAILABLE ON THE INTERNET OR ACCESSIBLE ON 15
A MOBILE PHONE, COMPUTER TERMINAL, OR SIMILAR DEVICE; 16

2. UTILIZES MULTIPLE CURRENCY SYSTEMS OF 17
PAYMENT ALLOWING THE PLAYER TO EXCHANGE THE CURRENCY FOR ANY PRIZE OR 18
AWARD OR CASH OR CASH EQUIVALENTS; AND 19

3. SIMULATES: 20

A. CASINO–STYLE GAMING , SUCH AS SLOT MACHINE S, 21
VIDEO POKER, AND TABLE GAMES, INCLUDING BLACKJACK, ROULETTE, CRAPS, AND 22
POKER; 23

B. LOTTERY GAMES, INCLUDING DRAW GAMES, INSTANT 24
WIN GAMES, KENO, AND BINGO; OR 25

C. SPORTS WAGERING. 26

(II) “INTERACTIVE GAME ” DOES NOT INCLUDE A G AME THAT 27
SOLELY AWARDS NONCASH PRIZES. 28

SENATE BILL 112 3

(4) “LICENSE” MEANS THE AUTHORITY ISSUED BY THE COMMISSION 1
TO OFFER OR CONDUCT AN ACTIVITY UNDER TITLE 9, SUBTITLE 1A, 1B, 1D, OR 1E 2
OF THE STATE GOVERNMENT ARTICLE. 3

(B) (1) A PERSON MAY NOT OPERA TE, CONDUCT, OR PROMOTE AN 4
INTERACTIVE GAME IN THE STATE. 5

(2) AN APPLICANT FOR OR A PERSON HOLDING A LICENSE SHALL 6
REPORT TO THE COMMISSION ANNUALLY A NY BUSINESS RELATION SHIP WITH A 7
FINANCIAL INSTITUTION, PAYMENT PROCESSOR, GEOLOCATION PROVIDER, GAMING 8
CONTENT SUPPLIER, PLATFORM PROVIDER, OR MEDIA AFFILIATE T HAT IS KNOWN 9
TO SUPPORT, OPERATE, CONDUCT, OR PROMOTE AN INTERA CTIVE GAME IN THE 10
STATE. 11

(C) (1) A PERSON WHO VIOLATES THIS SECTION IS GUIL TY OF A 12
MISDEMEANOR AND ON C ONVICTION IS SUBJECT TO IMPRISONMENT NOT 13
EXCEEDING 3 YEARS OR A FINE NOT LESS THAN $10,000 AND NOT EXCEEDING 14
$100,000 OR BOTH. 15

(2) IF A PERSON IS FOUND IN VIOLATION OF THIS SECTION, THE 16
COMMISSION SHALL DENY THE PERSON ’S LICENSE APPLICATIO N OR REVOKE A 17
LICENSE HELD BY THE PERSON. 18

Article – State Government 19

9–1A–07. 20

(G) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 21
MEANINGS INDICATED. 22

(II) “ILLEGAL INTERACTIVE G AMING MARKET” MEANS A 23
JURISDICTION IN WHIC H AN INTERACTIVE GAM E IS PROHIBITED BY T HE LAWS OF 24
THAT JURISDICTION. 25

(III) “INTERACTIVE GAME ” HAS THE MEANING STAT ED IN § 26
12–115 OF THE CRIMINAL LAW ARTICLE. 27

(2) ON APPLICATION FOR A LICENSE UNDER THIS S UBTITLE AND 28
ANNUALLY FOLLOWING THE ISSUANCE OF THE LICENSE , AN APPLICANT OR A 29
LICENSEE SHALL SUBMIT A DISCLOSURE STATING, FOR THE IMMEDIATE PRECEDING 30
12–MONTH PERIOD, THE JURISDICTIONS IN WHICH THE APPLICANT OR LICENSEE 31
OR ANY AFFILIATE OF THE APPLICANT OR LICENSEE DIRECTLY OR INDIRECTLY 32
ACCEPTED REVENUE FROM THE CONDUCT OF AN INTERACTIVE GAME IN AN ILLEGAL 33
INTERACTIVE GAMING MARKET. 34
4 SENATE BILL 112

(3) A MATERIAL MISREPRESEN TATION OR OMISSION O N THE 1
DISCLOSURE REQUIRED UNDER PARAGRAPH (2) OF THIS SUBSECTION MAY BE THE 2
BASIS FOR THE COMMISSION TO DENY AN APPLICATION FOR A LICENSE UNDER THIS 3
SUBTITLE OR , IN ACCORDANCE WITH § 9–1A–25 OF THIS SUBTITLE , IMPOSE 4
SANCTIONS ON A LICENSEE AND THE LICENSEE’S OFFICERS AND BOARD MEMBERS. 5

[(g)] (H) (1) [An individual ] A PERSON may not knowingly give false 6
information or make a material misstatement in an application required for any license 7
under this subtitle or in any supplemental information required by the Commission. 8

(2) [An individual ] A PERSON who violates this sectio n is guilty of a 9
misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine 10
not exceeding $5,000 or both. 11

9–1A–08.1. 12

(A) THE COMMISSION MAY NOT IS SUE A LICENSE TO A P ERSON REQUIRED 13
TO BE LICENSED UNDER THIS SUBTITLE IF THE APPLICANT OR ANY OF THE 14
APPLICANT’S AFFILIATES , INCLUDING AN ENTITY UNDER COMMON CONTROL , 15
KNOWINGLY ACCEPTS REVENUE THAT IS DIRECTLY OR INDIRECTLY DERIVED FROM: 16

(1) A HIGH–RISK JURISDICTION SUBJECT TO A CALL FOR ACTION BY 17
THE FINANCIAL ACTION TASK FORCE; 18

(2) A JURISDICTION DESIG NATED AS A STATE SPONSOR OF 19
TERRORISM BY THE UNITED STATES; OR 20

(3) A JURISDICTION IN WH ICH ONLINE CASINO GA MING IS 21
PROHIBITED AND THE REVENUE IS DERIVED FROM ONLINE CASINO GAMING IN THAT 22
JURISDICTION. 23

(B) (1) THE COMMISSION MAY NOT AL LOW A PERSON REQUIRE D TO BE 24
LICENSED UNDER THIS SUBTITLE TO COMMENCE OR CONTINUE OPERATIONS IF THE 25
COMMISSION DETERMINES THAT THE PERSON OR ANY OF THE PERSON’S 26
AFFILIATES, INCLUDING ENTITIES U NDER COMMON CONTROL , KNOWINGLY 27
ACCEPTS REVENUE THAT IS DIRECTLY OR INDIR ECTLY DERIVED FROM A 28
JURISDICTION DESCRIBED UNDER SUBSECTION (A) OF THIS SECTION. 29

(2) THE COMMISSION MAY REVOKE THE LICENSE OF A LICENSEE 30
THAT IS REQUIRED TO CEASE OPERATIONS UND ER PARAGRAPH (1) OF THIS 31
SUBSECTION IF , AFTER NOTICE AND OPP ORTUNITY FOR A HEARI NG, THE 32
COMMISSION DETERMINES THAT IT WOULD FURTHE R THE PUBLIC INTERES T TO 33
DISCONTINUE THE OPERATION OF THE LICENSEE IN THE STATE. 34
SENATE BILL 112 5

9–1E–03. 1

(a) (1) Unless the context requires otherwise, the requir ements under §§ 2
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
9–1A–19, 9 –1A–20, and 9 –1A–25 of this title apply to the authority, duties, and 4
responsibilities of the Commission, a sports wagering licensee, and an employee or a 5
contractor of a sports wagering licensee under this subtitle. 6

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
1, 2026. 8