Maryland’s gaming regulator has ordered sweepstakes operator Virtual Gaming Worlds (VGW) to exit the state as lawmakers consider the future of the vertical.
First reported by Forbes, the Maryland Lottery and Gaming Control Agency (MLGCA) told the Australian-based firm on March 12 that its sweepstakes casinos Chumba Casino and LuckyLand Slots are operating online gaming activities in the state “without the legal authority to do so”.
“The commission has no record of VGW being issued a sports wagering license, a casino gaming license, or registration as a fantasy competition operator,” said the regulator, which also stressed that only sports wagering and fantasy competition are permitted in Maryland.
VGW has been given until 27 March to leave the state. If the VGW believes it is operating the two brands lawfully, the MLGCA has stated it must provide “any legal analysis or opinion interpreting Maryland law that concludes, advises, or suggests that VGW may legally offer sports wagering, casino games or fantasy competition games in Maryland without Commission registration or licensure.”
Last year, VGW exited Connecticut following a similar cease-and-desist letter sent by the state’s Department of Consumer Protection. As of 15 April, customers in Nevada will also no longer have access to VGW’s Global Poker brand.
The company declined to comment on the latest news from Maryland when reached out to by SBC Americas.
In defence of sweeps
The MLGCA’s push to eradicate sweepstakes operators from the state has been coupled with a legislative push to ban the vertical.
In January, over a dozen operators were issued with notices to exit Maryland, meanwhile, a pair of companion bills, SB 860 and HB 1140, have been introduced to increase punishments for illegal online gaming and outlaw sweepstakes casinos in the state.
Just a day before VGW received its cease and desist order from the MGLCA VGW representative Josh White testified as part of a House Ways and Means Committee hearing.
During the discussion, he argues that sweeps and social gaming should not fall under the definition of illegal casino gambling and that VGW uses sweepstakes promotions “as a marketing tool where players never pay for a chance to win”.
He added: “[The bill] is based on misconceptions that would eliminate a well-regulated and legal form of digital entertainment while pushing Marylanders towards unregulated offshore platforms. A better approach is regulation, not prohibition.”
No vote has been taken on HB 1140, however, SB 860 was unanimously approved 47-0 in the full state Senate and is now set for a House committee hearing on 20 March.
