Baltimore officials filed a lawsuit accusing several social casino companies of running illegal online gambling platforms accessible to city residents, law firm DiCello Levitt announced Wednesday.
Key Takeaways
- Baltimore filed a lawsuit against six social casino operators, alleging illegal gambling activity disguised as legal sweepstakes.
- The complaint claims dual-currency systems allow users to wager purchased virtual coins for real cash prizes.
- The city is the second to directly target social casinos through lawsuits.
The complaint alleges the operators violated Baltimore's Consumer Protection Ordinance by presenting gambling products as legal sweepstakes casinos.
Defendants include B2 Services, Blazesoft Ltd., High 5 Entertainment, Stake.us, VGW Holdings, and Yellow Social Interactive Limited.
Many of the companies named in the complaint are incorporated outside the U.S. The city alleges the operators made their platforms easily available to Baltimore residents despite lacking authorization to offer gambling services in Maryland.
“This lawsuit is about drawing a clear line: illegal gambling operations are not welcome in Baltimore,” said Baltimore Mayor Brandon M. Scott. “These companies are targeting our communities, including young people and minors, and profiting while ignoring the law. No company, especially those operating from overseas, gets to profit here while flouting our laws and endangering our residents.”
City attorneys claim the companies describe the products as free social games even though participation often requires users to purchase credits with real money. The lawsuit states marketing materials target minors by including video game-style visuals and advertisements across social media platforms.
The city seeks civil penalties, restitution for affected consumers, injunctive relief, and the recovery of profits it alleges were unlawfully generated.
In April, city officials also filed a lawsuit against DraftKings and FanDuel for violating Baltimore’s Consumer Protection Ordinance.
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Maryland considers iCasino referendum
While Baltimore pursues legal action against unregulated operators, state lawmakers are also examining whether regulated online casino gaming should be allowed statewide.
Two bills, SB 761 and SB 885, were introduced as a paired proposal. SB 761 would place a question before voters in the November 2026 general election asking whether Maryland should authorize internet gaming for public programs, including education.
SB 885 outlines the regulatory framework that would apply if voters approve the referendum. The proposed legislation assigns oversight of iGaming and online bingo to the Maryland State Lottery and Gaming Control Commission. It also defines licensing requirements, operational standards, and consumer protection measures.
The proposal is structured around Maryland's existing casino industry. Participation would generally be limited to current casino operators and approved partners rather than opening licensing broadly to new companies.
The legislation also includes provisions for addressing problem gambling, monitoring, and a support fund for casino workers who could experience economic disruption should there be a shift in gambling activities to online platforms.
The two bills are still pending in the Maryland General Assembly.
