Maryland’s gaming regulator sent a second round of cease-and-desist letters to a pair of sweepstakes casinos and their operator.
Key Takeaways
- The Maryland Lottery sent initial cease-and-desist orders to the platforms in the spring.
- Recipients of cease-and-desists in Maryland have up to 10 days to shut down operations.
- The SGLA recently rebranded its sweepstakes casino games to “Social Plus.”
The Maryland Lottery and Gaming Control Agency, known as the Maryland Lottery originally sent cease-and-desist orders to the popular online sweepstakes casinos March 17. The regulator claimed VGW operated both platforms illegally without obtaining a Maryland gaming license.
The Maryland Lottery also said the only forms of legal online gambling in Maryland are online sports betting and fantasy contests, neither of which applies to the casinos’ offerings.
“We have reviewed your site(s) and see that (Lucky Land Slots and Chumba Casino’s)... offerings contain the elements of gaming,” Tuesday's letter, obtained by gaming lawyer Daniel Wallach, reads.
It adds, “Under Maryland law, gaming is illegal unless it is expressly authorized. The gaming that is being offered through your site is not legally authorized in Maryland.”
VGW was given until March 27 to confirm it had received the cease-and-desist order and report to the state if it was offering online gaming to its customers. That included providing a complete overview of its gaming content.
In Maryland, recipients of cease-and-desist orders are given 10 days to halt operations before they are deemed noncompliant.
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Maryland comes down on Chumba, Luckyland
Just like in the last cease-and-desists, the letters’ recipients were asked to acknowledge the notice within 10 days. They were also asked to share if they will halt a variety of offerings, including online poker, casino games, and sweepstakes, in Maryland.
Additionally, Chumba and Luckyland were asked to provide an effective shut-down date for their illegal offerings.
“Failure to comply with this Notice may jeopardize the qualifications of (Lucky Land Slots and Chumba Casino) for any future Commission-issued license, registration, or certification,” the cease-and-desists reads.
VGW in spring became the 12th social casino operator to receive a cease-and-desist order from the Maryland regulator.
'Social Plus' replacing 'sweepstakes casinos'
Maryland isn’t the only state taking a stand against sweepstakes casinos. These platforms have drawn the ire of many regulators nationwide, leading the Social Gaming Leadership Alliance (SGLA), of which VGW is a member, to rebrand its sweepstakes casino offerings to “Social Plus.”
The new term was meant to strip “misinformation” and properly represent games focused on consumer protection and responsible gaming.
“‘Social Plus’ gives us a bite-sized term that can positively describe online social games with sweepstakes promotions in an understandable and easy-to-share way,” SGLA managing director Sean Ostrow said in a Nov. 7 announcement. “Social games and entertainment are the core of what we do. But the “Plus” is more than just the opportunity to win prizes, it’s the higher standard of consumer protection and player safety that SGLA partners hold themselves to.”
