The Maryland Lottery and Gaming Control Agency has taken a firm stand against unregulated sweepstakes casinos. On March 12, the regulator sent a cease-and-desist letter to Virtual Gaming Worlds (VGW), accusing the company of operating without a valid license in the state.
VGW runs popular sweepstakes-based gaming platforms such as Chumba Casino, LuckyLand Slots, and Global Poker. However, Maryland authorities made it clear that the only permitted forms of online gaming in the state are mobile and online sports betting, along with fantasy contests.
Michael Eaton, managing director of the Maryland agency, stated in the letter that “online casino gaming, also known as iGaming, is prohibited in Maryland.” The commission also confirmed that VGW has no record of licenses for casino gaming, sports betting, or fantasy competitions in the state.
Strict Deadline and Potential Consequences
VGW must respond to the cease-and-desist letter by March 27, confirming whether it has conducted online gaming in Maryland. The company must also provide a complete breakdown of its gaming content, including any fantasy contests or sports wagering.
Additionally, the operator has ten days to halt any gaming activity in Maryland. Failure to comply may result in severe penalties, including a permanent ban on obtaining future licenses or registrations in the state.
Maryland’s crackdown on VGW aligns with ongoing legislative efforts to ban unregulated sweepstakes casinos. State lawmakers are pushing for stricter laws to prevent operators from exploiting legal loopholes through virtual currency models.
Sweepstakes casinos often offer virtual coins for purchase, which players can use for entertainment and sometimes exchange for cash prizes. While operators claim this model exempts them from traditional gambling regulations, regulators argue otherwise.
Maryland is not alone in this fight. States like Kentucky, Michigan, Mississippi, and Washington have also pursued legal actions against sweepstakes casinos operating without proper licenses. VGW’s case marks the 12th cease-and-desist order issued by Maryland authorities against such operators.
As regulators continue to tighten oversight, Maryland’s move signals a growing commitment to enforcing gaming laws and protecting consumers from unregulated platforms.
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