The Maryland legislature is considering a new bill that would give the state Attorney General powers similar to those granted under the federal Unlawful Internet Gambling Enforcement Act (UIGEA). Dubbed the Illegal Internet Gambling Enforcement Act (IIGEA), the legislation seeks to regulate and potentially prosecute online gambling operations within the state, with a particular focus on sweepstakes casinos.
Maryland’s IIGEA: Modeled on Federal UIGEA
While UIGEA famously led to the 2006 “Black Friday” crackdown on online poker sites like PokerStars and Full Tilt, Maryland’s state-level version differs in focus. Instead of targeting poker, the bill explicitly lists sweepstakes games as a regulated activity, while notably excluding sports betting and prediction markets.
The proposed law would allow the Maryland Attorney General to pursue online gambling companies, even those based outside the state, as well as any platforms that facilitate or promote them. Payment processors, content platforms, and web hosts could all be held accountable under the law.
Enforcement Powers and Practical Challenges
IIGEA would streamline the current cease-and-desist process. Currently, the Attorney General must first attempt to locate the operator directly before resorting to public notices. Under IIGEA, the AG could bypass that step and issue orders by publication immediately.
The law also broadly defines “platforms” as any entity that:
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Stores or hosts content, files, or data on a web server, and
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Makes this information accessible via computers, mobile devices, tablets, or other interactive devices.
This gives Maryland a sweeping claim over out-of-state platforms, though legal experts warn that enforcing jurisdiction beyond state borders is a gray area likely to face court challenges.
Legislative Progress
The IIGEA has been introduced in both chambers:
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House: Sponsored by Juanita Bartlett (HB1226)
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Senate: Sponsored by Jeff Waldstreicher and Chris West (SB652)
Both bills have had their first readings. Hearings are scheduled for March 5 in the House and March 11 in the Senate.
Outlook
If passed, Maryland’s IIGEA could give the state significant authority to regulate sweepstakes casinos and online platforms. However, enforcing such powers against out-of-state companies will likely be contested, leaving the legislation’s full impact uncertain.
This move reflects a growing trend of states exploring their own online gambling regulations, separate from federal oversight, in an era where digital gaming continues to expand.
