Maryland Takes Firm Stance Against Unregulated Online Sweepstakes Casinos

sweepstakes casinos. The agency recently issued a stern warning to Virtual Gaming Worlds (VGW), an Australian-based company operating popular platforms such as Chumba Casino and LuckyLand Slots. The action underscores Maryland’s commitment to enforcing its gambling laws and curbing unauthorized online gaming activities.

Regulatory Action Against VGW

On March 12, 2025, the MLGCA sent a formal Maryland. The letter, signed by managing director Michael Eaton, explicitly stated, “VGW d/b/a Chumba Casino and LuckyLand Slots is offering and conducting online gaming activities in Maryland without legal authority to do so.”

The communication emphasized that the only forms of online gaming permitted in Maryland are mobile sports wagering and online fantasy competitions. The agency demanded that VGW provide a detailed of its gaming activities in the state and any legal justifications for its operations by 5 p.m. ET on March 27. Additionally, VGW was required to confirm a cessation date for its unauthorized services within 10 days of receiving the notice.

Failure to comply, the MLGCA warned, could have severe consequences, including the potential disqualification of VGW from obtaining future licenses or registrations in Maryland. This enforcement action is part of a broader effort by the state to clamp down on illegal online gambling operations that by regulatory oversight.

The MLGCA’s crackdown coincides with legislative initiatives aimed at explicitly outlawing online sweepstakes casinos in Maryland. Senate Bill 0860, which seeks to ban these platforms, has gained significant traction, recently ing the Budget and Taxation Committee without opposition. The bill’s progress highlights the state’s determination to address the growing concerns surrounding unregulated online gambling.

Earlier this year, Maryland issued similar cease-and-desist notices to 11 other sweepstakes casinos and sportsbooks, signaling a consistent and aggressive approach to enforcing its gambling laws. The state’s actions reflect a broader trend of increased regulatory scrutiny on online gambling across the United States, as authorities grapple with the challenges posed by rapidly evolving digital gaming platforms.

VGW’s Defense and Industry Implications

The cease-and-desist letter to VGW was issued just one day after a VGW representative, Josh White, testified before the Maryland House Ways and Means Committee. White argued against proposed legislation that would ban sweepstakes casinos, contending that such platforms should be regulated rather than prohibited.

“VGW uses sweepstakes promotions the same way that McDonald’s and Microsoft do: as a marketing tool where players never pay for a chance to win,” White stated during the hearing. He emphasized that banning sweepstakes casinos would push Marylanders toward unregulated offshore platforms, advocating instead for a regulatory framework to govern the industry.

Despite these arguments, the legislative momentum appears to favor stricter controls. The companion bill to Senate Bill 0860, House Bill 1140, is also under consideration, further underscoring the state’s resolve to address the issue.

Maryland’s aggressive stance against VGW and other unregulated sweepstakes operators could set a significant precedent for other states facing similar challenges. As online gambling continues to grow in popularity, the actions taken by Maryland may influence how other jurisdictions approach the regulation of digital gaming platforms.

The outcome of this regulatory and legislative battle will likely have far-reaching implications for the future of sweepstakes casinos, not only in Maryland but across the United States. By taking a firm stand, Maryland is sending a clear message about the importance of adhering to state gambling laws and protecting consumers from unregulated and potentially harmful online gaming activities.

Source:

‘’Maryland Intensifies Regulatory Actions Against VGW’s Unlicensed Sweepstakes Casinos’’, news.worldcasinodirectory.com, March 18, 2025.