Notification in red letter – cease and desist The concept of the termination of activities.
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Maryland’s Firm Message to VGW
The Maryland Lottery and Gaming Control Agency, the state’s gaming regulator, has delivered a clear message to Virtual Gaming Worlds (VGW), the Australian firm operating popular sweepstakes casino platforms like Chumba Casino and Luckyland Slots: it’s time to exit the Maryland market.
Cease and Desist Notification
On March 12th, just a day after VGW’s lobbyist opposed a Senate bill aimed at banning online sweepstakes casinos in Maryland, the agency sent VGW an email. The communication indicated that VGW had been conducting online gaming activities in Maryland without the necessary legal authorization.
Online Gaming Regulations
The letter emphasized that the only legal online gaming activities in Maryland are mobile sports wagering and online fantasy competitions, while also clarifying that online casino gaming, or iGaming, is not permitted. The agency pointed out that VGW does not have a sports wagering license, a casino gaming license, or registration as a fantasy competition operator in Maryland.
Request for Confirmation and Documentation
Signed by Managing Director Michael Eaton, the letter requests that VGW confirm by 5:00 pm on March 27, 2025, whether it is still engaged in any sports wagering, casino gaming, or fantasy competitions in Maryland. If VGW is offering these services, it is required to provide detailed descriptions of its offerings and any legal opinions supporting its activities in the state.
Implications of Compliance or Defiance
The agency’s timing seems poised to exert strong pressure on VGW. If VGW chooses not to comply with the agency’s request, it risks the passage of Senate Bill 860 and further legislative action against online sweepstakes casinos. Conversely, if VGW complies, it may inadvertently admit that its previous operations in Maryland were illegal, potentially influencing legal situations in other states.
Potential Fallout from Legal Opinions
This cease-and-desist letter marks a notable departure, as it not only requests VGW to cease operations but also asks for any legal opinions that justify its business model in Maryland. Despite prior scrutiny and legal actions taken against VGW in other states, they have yet to provide a comprehensive legal defense of their operations.
The Broader Impact of this Situation
With just 10 days to respond, VGW finds itself in a precarious position. Resisting the Maryland Lottery’s demand may increase the legislative momentum against them, not just in Maryland but in neighboring states as well. If VGW opts for a voluntary exit, it could trigger similar demands in other jurisdictions, making this situation pivotal not only for VGW but for the future of sweepstakes casinos nationwide.
