Maryland Takes Steps to Curb Sweepstakes Gaming

The crackdown on online sweepstakes gaming has hit Maryland, where the operator of popular games Chumba Casino and LuckyLand Slots has been asked to exit the state or face potential consequences.

The Maryland Lottery and Gaming Control Agency (MLGCA), in a letter sent last week, notified Virtual Gaming Worlds that it is “offering and conducting online gaming activities in Maryland without legal authority to do so.”

Virtual Gaming Worlds has until 5 p.m. ET on March 27 to respond to the letter. If the operator confirms it is indeed offering any of the aforementioned activities, it must provide a series of documents including a detailed description of each casino game, detailed descriptions of sports wager offerings and fantasy competition offerings, and legal analysis of its eligibility.

In addition, the MLGCA is requesting that Virtual Gaming Works acknowledges it will “cease offering any sports wagering, casino game, or fantasy competition in Maryland, and a date within 10 days from the date of this letter in which you intend to cease such operations.”

The MLGCA warned that failure to adhere to its guidelines “may jeopardize the ability of VGW to ever be issued a license for sports wagering or gaming, registration as a fantasy competition operator, or any other license, registration, or certification from the Commission in the future.”

Legal iGaming in Maryland is not accessible, but the Old Line State does have retail casinos and online sports betting. Maryland saw $5.9 billion wagered on sports in 2024, a 28.7% increase over the previous year. Gross revenue spiked 23.7% to $635.7 million across sportsbooks.

The letter was sent one day after a VGW representative, Josh White, testified at a House Ways and Means Committee hearing in opposition to proposed legislation seeking to ban sweepstakes casinos in Maryland. White contended that sweepstakes games should not be classified as illegal because they’re used “in the same way that McDonald’s or Microsoft does,” merely as marketing tools.

House Bill 1140 follows actions taken by other states this year to curb sweepstakes gaming. New York is considering legislation that would ban online sweepstakes games and revenue from illegal markets, specifically targeting those that simulate casino-style entertainment, including poker, slots and sports betting.

“These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject,” the bill reads.

Other states looking to take action include Connecticut, Florida, Mississippi, and New Jersey.