Sweepstakes site VGW gets cease-and-desist from MD regulator
Company Behind Chumba Casino and LuckyLand Slots Faces Regulatory Scrutiny
In a decisive move to uphold regulatory standards, the Maryland Lottery and Gaming Control Agency has intensified its crackdown on unregulated sweepstakes casinos operating within the state. This action comes concurrently with the advancement of legislation that seeks to prohibit such platforms, targeting one of the industry’s most prominent players: Virtual Gaming Worlds (VGW).
In a formal cease-and-desist letter dated March 12, the agency formally alerted VGW of its unlawful online gaming activities in Maryland. VGW is the parent company behind well-known sweepstakes sites, including Chumba Casino, LuckyLand Slots, and Global Poker.
Michael Eaton, the managing director of the Maryland Lottery and Gaming Control Agency, emphasized in the correspondence that “the only online gaming permitted in Maryland includes mobile/online sports wagering and online fantasy competitions.” He further clarified that “online casino gaming, commonly referred to as igaming, is strictly prohibited in the state.”
The agency underscored its position by pointing out that there are no records indicating that VGW holds a sports wagering license, a casino gaming license, or any form of registration as a fantasy competition operator in Maryland.
Compliance and Accountability Demands
VGW has until 5 PM ET on March 27 to adequately respond to the agency’s letter. Should the company indeed be engaging in gaming activities in Maryland, it is required to furnish comprehensive descriptions of all its casino games, sports wagering, and fantasy competition offerings. Additionally, VGW 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.”
The regulator’s letter demands that VGW formally acknowledge its intention to “cease offering any sports wagering, casino game, or fantasy competition in Maryland” and must also specify a definitive date within ten days of the letter’s date for the cessation of operations.
Failure to comply with these directives may severely impact VGW’s future business prospects, including jeopardizing its ability to secure any licenses for sports wagering or gaming, or registration as a fantasy competition operator in Maryland or any other jurisdiction in the future.
This situation highlights the pressing need for clarity and compliance within the rapidly evolving landscape of online gambling. As states continue to refine their regulations in response to market developments, operators must prioritize adherence to legal frameworks to avoid potential penalties and operational disruptions.
