VGW Ordered Out of Maryland, Regulators Request Legal Analysis

Virtual Gaming Worlds (VGW), the Australian operator behind popular sweepstakes casino websites like Chumba Casino and Luckyland Slots, has run into hot water with Maryland's gaming regulators. The Maryland Lottery and Gaming Control Agency has officially notified VGW that its online gaming activities within the state lack legal authorization, prompting an immediate cease-and-desist request.

A Swift Regulatory Action

The regulatory response came swiftly on March 12th, just one day after VGW's lobbyist voiced opposition to Senate Bill 860, a proposed ban on online sweepstakes casinos. Michael Eaton, the agency's Managing Director, specifically emphasized that online gaming permitted in Maryland is strictly limited to mobile sports wagering and fantasy competitions. VGW, according to Eaton’s letter, holds no record of the mandatory licenses or registrations required for these activities.

Deadline and Demands

Maryland regulators set a firm deadline: by 5:00 pm on March 27, 2025, VGW must confirm if it is still operating sports wagering, casino gaming, or fantasy competitions within the state. If so, the agency requires detailed descriptions, mobile links, and, crucially, a legal opinion explaining the legality of VGW's offerings under Maryland law. Additionally, VGW must outline a timeline for ceasing all unauthorized gaming activities.

Regulators didn't mince words. Failure to comply could severely impact VGW’s chances of obtaining future licenses or registrations from the Maryland Lottery and Gaming Control Agency.

Implications for VGW and the Industry

The timing of this regulatory crackdown puts VGW in a challenging position. Compliance with the cease-and-desist order could be interpreted as admission of prior illegal operations, potentially triggering similar actions in other states. Conversely, resisting could further galvanize legislative efforts against sweepstakes casinos, essentially sealing the fate of Senate Bill 860.

This unprecedented demand by Maryland, particularly the request for a detailed legal analysis, adds pressure on VGW to justify its sweepstakes business model, a model already under significant scrutiny nationwide. Notably, sweepstakes casinos have faced criticism and legal challenges, including civil lawsuits and cease-and-desist orders from several states, none of which VGW has openly contested in court to date.

A Strategic Dilemma

VGW now faces a critical decision that could resonate across the industry. Resisting Maryland’s demands risks near-certain legislative defeat for sweepstakes casinos in the state, potentially inspiring similar legislation nationwide. Compliance, however, might embolden other jurisdictions to follow Maryland’s rigorous scrutiny.

With Maryland setting a new precedent by explicitly requesting legal justifications for VGW’s business practices, the ripple effects could significantly alter the landscape for sweepstakes casinos across the country. It’s clear that what VGW decides within these next critical days will be closely watched by regulators and legislators alike, potentially reshaping the future of online gaming in the United States.