In a bold move to regulate online gaming, the Maryland Lottery and Gaming Control Agency has escalated its efforts against unregulated sweepstakes casinos. The state’s gaming watchdog has issued a stern warning to Virtual Gaming Worlds (VGW), an Australian company that operates popular sites like Chumba Casino and LuckyLand Slots, signaling a crackdown on unauthorized online gambling activities in Maryland.

Regulatory enforcement action:

On March 12th 2025, immediately following a legislative session where a VGW lobbyist spoke against a proposed ban on online sweepstakes casinos, the Maryland gaming authority dispatched a decisive email. The communication clarified that VGW was operating without the necessary legal approvals, emphasizing that the only permissible forms of online gaming in Maryland are mobile sports wagering and online fantasy competitions. The letter from the agency forcefully noted, “VGW d/b/a Chumba Casino and LuckyLand Slots is offering and conducting online gaming activities in Maryland without legal authority to do so.”

The regulatory body’s letter (pdf), authored by managing director Michael Eaton, delineated the specific legal boundaries of online gaming in the state and demanded that VGW halt all unauthorized operations. It set a compliance deadline of 5 p.m. ET on March 27 for VGW to outline its current gaming activities in Maryland and furnish any legal justifications for its operations. The agency also required VGW to confirm a cessation date for its unauthorized services within 10 days of the notice, underlining the severe consequences of non-compliance, which could preclude VGW from obtaining future licenses or registrations in Maryland.

Legislative developments:

This enforcement action coincides with legislative efforts to explicitly outlaw online sweepstakes casinos in Maryland. Senate Bill 0860, aimed at banning these platforms, is moving swiftly through the legislative process, having recently passed the Budget and Taxation Committee without opposition. The heightened regulatory and legislative activities underscore Maryland’s commitment to curbing illegal online gambling operations that bypass state regulations and licensing requirements.

The Maryland Lottery and Gaming Control Agency’s assertive stance is part of a broader trend of increased regulatory scrutiny on online gambling across various states. Earlier this year, Maryland issued similar cease-and-desist notices to 11 other sweepstakes casinos and sportsbooks. The consistent pressure from regulatory bodies reflects growing concerns about the integrity of online gaming and its impact on consumers.

Maryland’s aggressive measures against VGW and other sweepstakes operators highlight the state’s determination to enforce its gambling laws strictly. As the landscape of online gambling continues to evolve, the actions taken by Maryland could serve as a precedent for other states grappling with similar regulatory challenges. The outcome of this confrontation could significantly influence the future operations of sweepstakes casinos not only in Maryland but across the entire United States.