VGW Must Exit Maryland Following Regulatory Scrutiny, Legal Review Requested
The Maryland Lottery and Gaming Control Agency certainly isn't mincing words. In a recent letter sent on March 12th, the regulator made it abundantly clear to Virtual Gaming Worlds (VGW), the Australian-based operator behind popular sweepstakes casinos Chumba Casino and Luckyland Slots, that the state has had enough of unauthorized gaming operations. This sharp directive closely followed testimony provided by a VGW lobbyist who opposed Senate Bill 860, legislation designed to ban online sweepstakes casinos in Maryland.
Unlicensed Operations Under Fire
The letter explicitly accused VGW of conducting online gaming activities without any form of legal authorization. Maryland’s law distinctly permits only mobile/online sports wagering and online fantasy competitions, explicitly excluding online casino gaming (known as iGaming) from its authorized activities. VGW, lacking any official records of sports wagering licenses, casino gaming licenses, or fantasy competition registrations issued by Maryland, finds itself in the regulator's crosshairs.
Cease Operations or Face Consequences
Maryland's gaming regulator has demanded VGW confirm by March 27, 2025, whether it's still involved in any prohibited gaming within state lines. Should VGW affirm such operations, the agency insists on detailed disclosures, including:
- Comprehensive descriptions of each casino game, sports wagering, and fantasy competition offered, complete with mobile links or retail locations.
- Any legal opinions or analyses that suggest VGW’s operations legally comply with Maryland law without official registration or licensure.
The letter further insists VGW agree to cease all unauthorized activities within ten days of receipt. Non-compliance could severely restrict VGW’s future licensing or registration possibilities in the state.
Regulatory Pressure Intensifies Amid Legislative Actions
This regulatory push seems strategically timed, occurring just after VGW’s opposition to Senate Bill 860 and shortly before further legislative scrutiny. If VGW refuses compliance, it risks amplifying legislative support for the bill, essentially sealing the fate of sweepstakes casinos in Maryland. Conversely, compliance might imply admission of previous illegal activities—potentially fueling similar actions elsewhere.
Legal Opinion: A Risky Proposition for VGW
Maryland's request for a legal opinion from VGW marks a significant escalation. While VGW has faced similar cease-and-desist actions in other states like Connecticut, Delaware, and Michigan, this appears to be the first instance where regulators explicitly demand a detailed legal justification for operations. Given mounting skepticism, civil lawsuits, regulatory actions, and legislative proposals against sweepstakes casinos, VGW faces considerable risks in disclosing its legal rationale.
Broader Implications for the Industry
VGW’s response—or lack thereof—could significantly influence legislative trends nationwide. Resistance might solidify legislative bans in Maryland, potentially catalyzing similar movements in other states such as New York, New Jersey, Connecticut, Florida, and Mississippi. Conversely, voluntary withdrawal could encourage more states to pursue regulatory scrutiny and demands for transparency from sweepstakes operators.
The clock is ticking, and VGW's decision in Maryland will likely resonate far beyond state borders.