Chavdar Vasilev is a journalist covering the casino and sports betting market sectors for CasinoBeats. He joined CasinoBeats in May 2025 and reports on industry-shaping stories across the US and beyond, including legislative debates, market...
Read Full BioThe Maryland Lottery and Gaming Control Commission (MLGCC) has issued a second round of cease-and-desist letters to Chumba Casino and LuckyLand Slots, after VGW, the operator of both platforms, failed to comply with MLGCC’s first notice in March. In the new letters, sent on November 18, the regulator directs the platforms to shut down immediately in the state.
The identical letters, shared by gaming attorney Daniel Wallach, begin unequivocally:
“This is a Notice from the Maryland Lottery and Gaming Control Commission (‘Commission’) to Chumba Casino to immediately cease and desist conducting all unauthorized online gaming activity in Maryland.”
Regulators: Platforms are Offering Illegal Gambling in Maryland
MLGCC stated that Chumba and LuckyLand are offering real-money gaming equivalents to residents. The letter states: “We have reviewed your site and see that Chumba Casino is offering online poker, casino gaming, and sweepstakes that are available to individuals who are physically present in Maryland.”
The Commission further explains that these offerings satisfy all elements of gambling: “These offerings contain the elements of gaming: consideration, chance, and prize; in other words, it is gaming.”
The letter then makes Maryland’s position explicit: “Under Maryland law, gaming is illegal unless it is expressly authorized. The gaming that is being offered through your site is not legally authorized in Maryland.”
Maryland law only permits two online gambling categories:
- Mobile sports wagering offered by licensed operators
- Online fantasy sports competitions registered with the Commission
As the C&D notes: “No other operators or forms of real-money online gaming are currently legal in Maryland.”
VGW Ignored Maryland’s First Letter, But Could Delaware’s Outcome Follow?
In March, MLGCC sent cease and desist letters to a few sweepstakes casinos, including Stake.us, High 5 Casino, and VGW’s platforms. For Stake, that was the second such notice. Although the operator resisted for months, it eventually left the state. High 5 Casino complied promptly.
VGW, however, never responded. Still, this mirrors how the company handled enforcement elsewhere. In Delaware, VGW ignored the first order issued in 2023, but ultimately left the state after receiving a second notice in April of this year. The company also exited Connecticut in late 2024 following regulatory pressure.
Maryland’s new letter explicitly cautions that continued silence is not an option: “Failure to comply with this Notice may jeopardize the qualifications of Chumba Casino for any future Commission-issued license, registration, or certification.”
The Commission also emphasizes that VGW must respond within 10 days, writing: “Please acknowledge and respond to this Notice, by email, within 10 days from the date of this letter.”
VGW’s Non-Compliance Could Help Future Legislative Push
Maryland already attempted to ban sweepstakes casinos this year. Senate Bill 860 passed the Senate but stalled in the House as the legislative session came to a close. VGW was among the parties that testified in opposition to the prohibition.
As Wallach points out, however, VGW’s refusal to respond to the March order could help support the revival of prohibition efforts in 2026. Additionally, since Maryland’s 2025 legislative session ended, six states passed ban bills on sweepstakes casinos, meaning lawmakers could be more inclined to push a ban through the finish line in 2026.
VGW Already Preparing Tennessee Exit
Just days after Maryland issued its second C&D, VGW announced a withdrawal from Tennessee by year’s end.
In the notice, the company states that starting November 24, players will no longer be able to collect Sweeps Coins. Still, they will be able to use available coins until December 23. After that day, users are unable to play using Sweeps Coins. They will still be able to redeem eligible coins until January 20, 2026. From that day, VGW will no longer process redemptions.
The platforms will remain accessible in Tennessee only for Gold Coin (non-redeemable) play.
The exit from the Volunteer State comes just weeks after VGW informed users that it will withdraw from West Virginia. The phased-out exit is underway, with the last day to redeem eligible Sweeps Coins in the state being November 25.
Once Tennessee is added, it becomes VGW’s 13th restricted U.S. jurisdiction and its ninth exit of 2025.
A Day Later: Maryland Warns Sportsbooks on Prediction Markets
Just a day after it sent the cease-and-desist letters to Chumba and LuckyLand Slots, MLGCC issued a separate industry alert. It warned licensed sportsbooks that offering prediction markets or event-contract products could put their state licenses at risk.
The regulator has sent cease-and-desist letters to prediction market platforms Kalshi, Robinhood, and Crypto.com. That resulted in a counter suit by Kalshi, which is currently ongoing.
The letter made Maryland the seventh state to issue a warning to licensees on entering the fast-growing but highly debated segment. Notably, Nevada was among them, but industry leaders DraftKings and FanDuel decided to withdraw their license applications as they’re pivoting into prediction markets.
