The Mayor and City Council of Baltimore have filed a lawsuit against multiple sweepstakes casino operators, marking the first municipal civil enforcement action against sweeps since last year’s Los Angeles City Attorney case.
The companies named in the complaint are:
- VGW – Chumba, LuckyLand Slots, and more
- B2Services OÜ – McLuck, HelloMillions, and more
- Yellow Social Interactive – Pulsz and Pulsz Bingo
- Sweepsteaks Limited – Stake.us
- High 5 Entertainment – High 5 Casino
- Blazesoft – Fortune Coins, Zula, and more
It’s worth noting that three of these operators have previously withdrawn from Maryland but are still named in the suit for alleged past violations.
The complaint claims that the companies ran gambling-style games disguised as sweepstakes, which is illegal in Maryland. The city is seeking civil penalties of $1,000 per violation, restitution for Baltimore residents, disgorgement of profits, and injunctions preventing the operators from future business there.
Lawsuits against sweepstakes casinos are common, but this one could carry more weight considering it comes directly from a municipal government rather than a private party.
It’s reminiscent of the Los Angeles City Attorney enforcement action last year. That suit did have fast and far-reaching consequences in the sweeps space, prompting certain game suppliers to withdraw from California, or even the sweepstakes format in general (Pragmatic Play).
Maryland Has Already Tried to Push Sweeps Operators Out of the State
As touched on above, some of the operators named in the Baltimore suit are already withdrawn from Maryland, possibly influenced by the wave of cease-and-desist letters sent out by the Maryland Lottery and Gaming Control Agency.
That full list of operators contacted was published in March last year. In fact, VGW was contacted for a second time by the regulator late last year but still operates in Maryland.
Maryland lawmakers have also tried to push through proposals banning the sweepstakes format completely, with SB 860 and HB 1140 introduced in 2025. However, neither bill managed to reach the Governor’s desk.
This year we’re seeing SB 112 and HB 295 making similar efforts, but as of yet, neither has made significant progress with around a month left before the sessions ends.
Contents of the Baltimore Sweepstakes Complaint
The Baltimore lawsuit argues that the sweeps platforms’ use of a dual-currency system is “designed to cloak the nature of the activity” – the activity being online gambling, which is banned in MD. Maryland law allows for land-based casinos, the state lottery, sports betting, and fantasy sports contests, but it does not permit iGaming.
The complaint also uses emotive language throughout, claiming that sweepstakes casinos target minors through social media marketing and colorful, character-driven games. In practice, this appears exaggerated, as sweeps operators generally require KYC verification and do not allow redemptions without a valid ID, effectively preventing underage players from winning or having any incentive to sign up.
The complaint often conflates crypto casinos with sweepstakes casinos too, despite the two being separate verticals.
To decide whether the suit is successful, the key legal question here is whether sweepstakes operators violated Maryland gaming or consumer protection law by operating illegal gambling (consideration, chance, and prize).
It’s an accusation often levelled against the sweepstakes space, but still no US court has issued a definitive ruling. Operators continue to rely on the dual-currency model to remain compliant with state law in most places.
Some states – including California and New York – have been able to pass anti-sweeps laws definitively banning the format, and it looks like Indiana could be added to that list soon. However, it remains to be seen whether Baltimore’s lawsuit can succeed in court or substantiate its claims.
The case will now proceed through Baltimore’s courts, giving operators a chance to respond while the city must prove its claims, which is easier said than done.
Author: Jon Ridehalgh
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