After a failed attempt last year, Maryland legislators are taking another swing at creating a formal license for cigar lounges that want to let customers enjoy a drink with their smoke. The proposed bills, reintroduced in the 2026 legislative session, aim to solve a problem that's been bugging cigar shop owners across the state for years—whether they can legally let people bring alcohol into their establishments.
The whole thing started back in 2024 when the Maryland Department of Health put together a working group to figure out if tobacconists should be able to get liquor licenses. That led to proposed legislation in 2025, but it didn't go anywhere. Now it's back with some tweaks that could make it more palatable to lawmakers, though it still faces an uphill battle.
The Current Situation
Right now, Maryland law is a bit murky when it comes to cigar lounges and alcohol. The state's Clean Indoor Air Act has an exemption for tobacco shops, but the rules about bringing booze into these places have been enforced differently depending on which county you're in. Some shops already advertise themselves as BYOB—bring your own bottle—but they're operating in a legal gray area that could potentially get them in trouble.
The current law says a business can allow indoor smoking if its "primary activity is the retail sale of tobacco products and accessories; and the sale of other products is incidental." That last part—"is incidental"—doesn't give anyone a clear number to work with, which has created confusion about what flies and what doesn't.
What The New Bills Would Do
House Bill 766 and Senate Bill 623 would make some significant changes. First off, they'd replace that vague "is incidental" language with a hard number—businesses couldn't make more than 30 percent of their money from selling stuff that isn't tobacco-related if they want to keep allowing indoor smoking.
But the real meat of the legislation is creating something called a Class C-Premium Cigar Lounge license. This would officially let customers bring their own liquor into cigar lounges and drink it from 10 in the morning until 1 in the morning. The license would only cost retailers $100 a year, which is a far cry from the $2,000 price tag the 2025 version carried.
To qualify for this license, shops would need to jump through several hoops. They'd have to make sure at least one employee gets certified in an alcohol awareness program. They'd need building plans showing they have proper air filtration and exhaust systems—nobody wants smoke pouring out into the street. And they'd have to generate at least 70 percent of their revenue from premium cigars, pipe tobacco, and related accessories. Every employee would also need to sign something acknowledging they'll be exposed to secondhand smoke on the job.
The Geographic Limits
Here's where things get a bit restrictive. The bills would limit how many of these licenses could be issued based on population. County clerks could only hand out one license for every 150,000 residents. In counties with fewer than 150,000 people, they'd be limited to just one license total.
That's a pretty big deal when you look at Maryland's demographics. The state has 23 counties, and 13 of them have populations under 150,000. That means more than half the counties in Maryland could only have a single licensed cigar lounge under this system.
On the flip end of the spectrum, there's Montgomery County, the state's most populated county. Based on its 2024 population numbers, Montgomery could potentially have eight of these licenses available. That's a pretty stark difference from the rural counties that would be limited to one.
There's also a location restriction. Any cigar shop sitting next to a licensed healthcare facility or licensed childcare facility wouldn't be eligible for the license at all. That makes sense from a public health standpoint, but it could knock out some existing shops depending on what's nearby.
What Changed From Last Year
The 2026 version of the bills has some notable differences from what was proposed in 2025. For starters, the 2025 version included language that would have grandfathered in existing cigar lounges. That provision seems to have disappeared from the current bills, which could be a sticking point for shops that are already operating.
The earlier version also didn't include the 70 percent revenue threshold for being exempted from the Clean Indoor Air Act. And as mentioned earlier, that $2,000 license fee got slashed down to just $100, which should make it a lot more accessible for smaller operations.
Who Supports It
Glynn Loope, who serves as director of state advocacy for the Premium Cigar Association, threw his support behind the legislation. In a letter, Loope pointed out that while current Maryland law technically allows tobacconists to apply for alcohol licenses, county enforcement has been all over the map.
"Although current law permits Maryland tobacconists to apply for alcohol licenses, county regulation of existing lounges has been inconsistent," wrote Loope. "A statewide license would provide regulatory clarity and uniformity for a limited number of new lounges."
That's the crux of the issue—right now, whether you can bring a bottle of bourbon into your local cigar shop depends on which county you're in and how the local authorities feel about enforcing the rules. A statewide license would create one set of standards everyone has to follow.
Who's Against It
The bills aren't without opposition. The Maryland Department of Health came out against the 2025 version, as did anti-smoking groups and the Restaurant Association of Maryland. Between the House and Senate versions of the 2025 bills, only six legislators signed on as co-sponsors, and the proposed legislation never made it out of committee.
The 2026 versions were introduced by Delegate Andre Johnson Jr., a Democrat from Hartford County, and Senator Ron Watson, a Democrat from Prince George's County. The same two lawmakers who pushed for it last year. This time around, the bills have only managed to attract three co-sponsors combined between both versions.
The opposition from health groups makes sense—they're generally against anything that makes it easier to consume tobacco products. The Restaurant Association's opposition is a bit more interesting. They might be concerned about competition, or they might have issues with the BYOB aspect creating an uneven playing field compared to restaurants that have to go through the full licensing process to serve alcohol.
What It Means Going Forward
The fact that this legislation is back for round two shows there's at least some appetite for clarifying the rules around cigar lounges and alcohol in Maryland. But the lack of co-sponsors and the opposition from multiple interest groups suggests it's going to be a tough sell.
For cigar shop owners who've been operating BYOB establishments, the bills would provide legal cover and clear guidelines. They'd know exactly what they need to do to stay on the right side of the law. For owners thinking about opening new lounges, the path forward would be much clearer than it is now.
The population-based limits on licenses could create some interesting dynamics. In the more populated counties, there might be competition among existing shops to be the ones who get licensed. In rural counties where only one license would be available, whichever shop gets it would essentially have a monopoly on the combination of cigars and customer-brought alcohol.
The removal of the grandfathering language from the 2025 version could be problematic. If there are shops currently operating as BYOB establishments, and the new system only allows one license per 150,000 residents, some of those shops might find themselves out of luck. They'd have to either stop allowing alcohol or hope they're the ones who get the limited licenses available in their counties.
The $100 annual fee is a significant improvement over the $2,000 that was proposed last year. That lower price point means even smaller shops could afford to get licensed without it being a major financial burden. It also suggests the legislature might be more focused on creating a regulatory framework than generating revenue from the licenses.
Whether this version of the bills has any better chance of passing than last year's attempt remains to be seen. The tweaks show lawmakers heard at least some of the feedback, but without broader support from legislators and with continued opposition from health and restaurant groups, it could be another tough road ahead.
For now, cigar enthusiasts and shop owners in Maryland will have to wait and see if state legislators can come to an agreement on how to handle this niche but persistent issue.
