Maryland Tightens Regulations on Unauthorized Gambling Establishments
Cracking Down on Unregulated Gambling: Maryland's Tough Stance on Sweepstakes Casinos
Maryland's gaming authorities have taken a hardline approach against unauthorized sweepstakes casinos, following in the footsteps of several states tackling this issue. The Maryland Lottery and Gaming Control Agency has issued a cease-and-desist order to Virtual Gaming Worlds (VGW), accusing them of operating without a valid license in the state.
VGW manages popular gaming platforms such as Chumba Casino, LuckyLand Slots, and Global Poker. However, Maryland considers these as unauthorized forms of online gaming, with only mobile and online sports betting, along with fantasy contests, being the legal options in the state at present.
Michael Eaton, the managing director of the Maryland agency, stated in the letter that "online casino gaming, also known as iGaming, is prohibited in Maryland." Maryland records also reveal that VGW has no records of licenses for casino gaming, sports betting, or fantasy competitions.
Deadline and Potential Penalties
VGW must respond to the cease-and-desist letter by March 27, confirming whether they've been conducting online gaming in Maryland. They must also present a detailed account of their gaming content, including information on fantasy contests or sports wagering. Additionally, the operator has ten days to halt any gaming activity in Maryland. Failure to comply may result in severe penalties, including a permanent ban from obtaining future licenses or registrations in the state.
Maryland's Longstanding Fight Against Sweepstakes Casinos
This latest move by the Maryland authorities mirrors ongoing legislative efforts aiming to restrict unregulated sweepstakes casinos. State lawmakers seek to strengthen laws and eliminate operator loopholes using virtual currency models.
Sweepstakes casinos often provide virtual coins for purchases, which players can utilize for entertainment or exchange for cash prizes. While operators claim this model exempts them from traditional gambling regulations, regulators refute these claims.
Several states, including Kentucky, Michigan, Mississippi, and Washington, have also taken legal action against unlicensed sweepstakes casinos. VGW's case represents the 12th cease-and-desist order issued by the Maryland authorities against such operators.
As regulators continue tightening their oversight, Maryland's actions signify a growing commitment to enforcing gaming laws and safeguarding consumers from unregulated platforms.
Gambling Laws in Maryland:
Maryland's gaming laws currently permit certain online gaming forms but with restrictions. The legal options are:
- Online Sports Betting: Approved and regulated in Maryland for residents to place bets via licensed online platforms[2][3].
- Daily Fantasy Sports: Legal and accessible for players[2].
Even so, Online Casinos like slots, poker, and blackjack aren’t legal in Maryland, with bills like House Bill 17 under consideration to establish a legal framework for these games[1][2][3]. Online poker, like other casino games, remains outlawed.
Operating an unlicensed online gaming platform in Maryland risks significant legal consequences, including criminal charges, financial penalties, reputation damage, and legal action, such as shutting down operations.
Ongoing legislative efforts seek to legalize online casinos in Maryland, focusing on creating a regulatory framework to ensure consumer protection, fair play, and tax revenue generation[1][2]. Nonetheless, real-money online casino gaming remains illegal in the state at present.
- The finance-related concerns surrounding the legality of online casinos, such as Chumba Casino, LuckyLand Slots, and Global Poker, are under investigation in Maryland, as operators like Virtual Gaming Worlds (VGW) are being accused of operating without a valid license in the state, with potential penalties including a permanent ban from obtaining future licenses or registrations.
- The business sector, particularly fintech companies involved in the casino-and-gambling industry, may find it challenging to navigate Maryland's complex gambling laws, as the state only permits mobile and online sports betting, along with fantasy contests, with other forms of online gambling, such as casino games, currently illegal and subject to strict regulations.
- With the Maryland Lottery and Gaming Control Agency cracking down on unregulated gambling, the finance industry should be aware of the risks associated with engaging in unlicensed casino-games, as the agency has issued several cease-and-desist orders to operators, making violations a serious matter with potentially serious legal consequences.
