Maryland Turns Up the Heat, Tells VGW to Pack Up and Go
Maryland’s gaming regulators are cracking down hard, firing off a cease-and-desist letter to sweepstakes giant VGW. The Maryland Lottery and Gaming Control Agency stated that VGW’s online gaming ops in the state lack legal footing, and they’ve got until March 27 to prove otherwise or get out.
Stop or Explain
The agency’s letter lays it out plain: in Maryland, only mobile sports betting and online fantasy contests get a green light. Casino-style iGaming’s off-limits. They’ve got no record of VGW holding a sports betting license, a casino permit, or a fantasy operator registration.
Yet, the company’s been running games anyway, and regulators want answers. By 5:00 p.m. ET on March 27, VGW needs to confirm whether it’s still offering sports wagers, casino games, or fantasy contests to Marylanders.
If they are, the agency’s demanding a full rundown: details on every game, links to mobile versions, even physical locations if they exist. On top of that, VGW’s got to cough up any legal analysis or opinion claiming its offerings are legit under Maryland law without proper licensing.
And here’s the kicker: they’re also told to promise they’ll stop, setting a hard exit date within 10 days of the letter. No response, or no compliance, could tank any shot VGW has at future licenses or approvals from the state’s gaming commission.
This isn’t random. As Gaming law expert Daniel Wallach spotlighted in a Forbes article, the letter landed just a day after a VGW rep testified against a Senate bill aiming to ban sweepstakes casinos statewide, talk about a quick counterpunch.
It’s not the first rodeo for Maryland regulators either; they’ve already sent similar notices to 11 other online gambling outfits deemed illegal. VGW, known for brands like Chumba Casino and LuckyLand Slots, now faces a choice: fight, fold, or flee.
Sweeping Out Sweepstakes
This dust-up with VGW fits a broader push in Maryland to ban sweepstakes casinos outright. Senate Bill 860 (SB 860), led by Sen. Paul Corderman, wants to outlaw “operating, conducting, or promoting” these sites, zeroing in on their dual-currency trick; free coins plus paid ones that cash out real prizes.
It’s a wide net, covering slots, video poker, table games, lotteries, keno, bingo, and even sports bets if they dangle cash rewards. The Senate Budget and Taxation Committee gave it a unanimous 13-0 nod, and it’s barreling toward a full Senate vote.
Over in the House, a twin bill, HB 1140, is working through the Ways and Means Committee, which held a hearing but hasn’t updated progress yet. Both bills aim to kill the legal loophole sweepstakes exploit, frustrating regulators who argue it’s gambling in disguise.
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