Maryland regulator targets sweepstakes operator VGW
The Maryland Lottery and Gaming Control Agency doubled down on its efforts to crack down on unregulated sweepstakes casinos in the state. It sent a formal cease-and-desist letter to one of the industry’s largest operators just as legislation to ban such sites advances in the state legislature.
In a letter dated 12 March, the agency informed Virtual Gaming Worlds (VGW) that it has come to the agency’s attention that VGW is “offering and conducting online gaming activities in Maryland without legal authority to do so”. VGW operates sweepstakes sites such as Chumba Casino, LuckyLand Slots and Global Poker.
The letter, signed by managing director Michael Eaton, explicitly states that “the only online gaming permitted in Maryland is mobile/online sports wagering and online fantasy competitions”, adding that “online casino gaming (also known as igaming) is not permitted in Maryland”.
The agency noted that the state commission “has no record of VGW being issued a sports wagering licence, a casino gaming licence, or registration as a fantasy competition operator.”
Strong language
VGW has until 5pm ET on 27 March to respond to the letter. If the company is indeed offering gaming activities in Maryland, it must provide detailed descriptions of all its casino games, sports wagering and fantasy competition offerings, along with “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.”
The regulator is demanding that VGW acknowledge it will “cease offering any sports wagering, casino game, or fantasy competition in Maryland” and provide “a date within 10 days from the date of this letter in which you intend to cease such operations”.
The letter warns that failure to comply “may jeopardise the ability of VGW to ever be issued: a licence for sports wagering or gaming, registration as a fantasy competition operator, any other licence, registration, or certification from the Commission in the future”.