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- Maryland regulators have intensified their enforcement against sweepstakes casinos by issuing a second cease-and-desist order targeting Chumba Casino and LuckyLand Slots.
- This move highlights a growing national trend toward stricter oversight of sweepstakes-style online gaming, signaling increased regulatory pressure on operators in US markets.
Maryland’s Lottery and Gaming Control Agency has issued a second cease-and-desist order against Virtual Gaming Worlds’ platforms, Chumba Casino and LuckyLand Slots, for offering unauthorized online gaming in the state.
Despite a prior warning in March, these sweepstakes casinos continue to operate, prompting Maryland regulators to reiterate that only licensed sports betting and fantasy contests are legal.
The agency warned that continued non-compliance could impact VGW’s eligibility for future licenses.
Follow the law or face the consequences
This enforcement action reflects growing statewide and nationwide scrutiny of sweepstakes models, which leverage virtual currency and promotional mechanics to operate outside traditional casino regulations. Maryland’s move underlines a clear message: operators must fully comply with state laws or face escalating consequences.
This crackdown could mean reduced access to popular sweepstakes platforms, fewer promotional offers, and potential account restrictions if operators adjust to comply with legal demands. From an industry perspective, operators might need to rethink their business models, invest more in legal compliance, or pursue formal gaming licenses.
Maryland’s enforcement also contributes to a broader regulatory shift across the US, where states are reassessing the legal status of sweepstakes gaming amid concerns about the blurred lines between social gaming and gambling.
This evolving landscape could ultimately benefit players by creating a safer and more transparent gaming environment across US markets. Whether that leads to states legalizing real-money online casinos remains to be seen, but it’s the next logical step in this process.
The popularity of social casinos indicates that people are eager to play these games. So, take it out of the gray market and provide players with a legal way to do so.
Based on reporting by Filip Jovchevski for Deadspin.
