Maryland Regulators Order Sweepstakes Gambling Operator To Exit The State

As states continue cracking down on sweepstakes and social casino gaming, Maryland regulators became the latest to make a move on these operators. The Maryland Lottery and Gaming Control Agency recently sent Australian-based Virtual Gaming Worlds a cease and desist letter.

VGW operates sweepstakes casino websites Chumba Casino, Luckyland Slots, and Global Poker. The company was ordered to stop operating in the state and produce confirmation in writing to the agency by March 27 that it had done so.

The agency also demanded that the company no longer operate any sports betting or fantasy contests in Maryland.

“The only online gaming permitted in Maryland is mobile/online sports wagering and online fantasy competitions,” control board managing director Michael Eaton noted in the letter to VGW. “Online casino gaming is not permitted in Maryland, and an operator is prohibited from offering any casino gambling unless licensed by the commission.”

Regulator Demands Answers

If the company continues to operate, the agency is asking for a full report on what games and sites are still in operation and a defense of why VGW believes those fall within Maryland law, including “any legal analysis or opinion interpreting Maryland Law that concludes, advises, or suggests that VGW may legally offer sports wagering, casino games or fantasy competition games in Maryland without commission registration or licensure.”

The move comes as the state looks to both ban sweepstakes casinos, but legalize regulated and licensed operators. Sen. Ron Watson, who sponsored online casino legislation last year, believes a sweepstakes ban could pave the way for regulated operators to enter the market.

“The intent of this bill is to acknowledge and put a halt to the amount of illegal gaming going on, and the uncaptured state revenue that is missed by not regulating and supporting legal iGaming,” Watson told Card Player. “iGaming is definitely ‘on the table’ and as Maryland’s fiscal challenges become more severe, this is now being considered as a potential option. Daily conversations are ongoing.”

VGW was also issued cease-and-desist letters in Connecticut, Delaware, and Michigan. But this is the first time a regulator has demanded that the company provide a legal opinion of its operations. There hasn’t yet been an announcement from VGW about leaving the state or responding to the agency’s demands about the company’s operations.

Other states considering sweepstakes gaming bans include New York and Florida.

New Jersey is taking a different approach. Lawmakers in the Garden State are considering regulating the industry like the state’s legal operators.

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