Maryland Lottery and Gaming Sends 11 Cease and Desist Letters to Sweepstakes Casino Platforms
The Maryland Lottery and Gaming Control Agency has produced a report which gives details on its 11 cease and desist letters sent to sweepstakes casino operators. These operators are now required to stop operating in Maryland and serving the state's customers because they are believed to have been offering illegal online casino gaming.
The Maryland Lottery and Gaming Control Agency has taken decisive action against online gaming operators it believes are operating illegally within the state. In a report published earlier this week, the agency confirmed that it had issued cease-and-desist (C&D) letters to a total of 11 sweepstakes casino and sportsbook operators, urging them to stop serving Maryland customers immediately.
The agency provided a list of the targeted operators. Among them, six companies - Golden Hearts, McLuck, Zula, REBET, Stake.US, and Fortune Coins - acknowledged receipt of the letters and responded to the agency. The remaining five, namely BETUS, SlotsAndCasino, BETNOW, BetAnySports, and Everygame Sportsbook - did not respond to the directive.
Sweepstakes operators under scrutiny
The six operators that responded are all sweepstakes-based platforms, a category of online gaming that has often operated in legal gray areas across the US. Notably, Stake.US is the social gaming counterpart of Stake.com, a well-known international gaming entity. REBET, another recipient of a C&D letter, had previously announced nearly a year ago its intention to offer a sweepstakes sportsbook in 47 states.
While sweepstakes operators argue that their business models comply with state and federal legislations and regulations, critics have accused them of exploiting legal loopholes to provide real-money gaming disguised under the sweepstakes model. The decision to single out these six companies from a broader pool of sweepstakes operators remains unclear, raising questions about the selection process.
Offshore sportsbooks also targeted
In addition to the sweepstakes companies, the remaining five operators that received C&D letters are believed to be offshore sportsbooks or online casinos. These sites, which often operate outside US jurisdiction, have long faced scrutiny from state regulators for offering online betting services without proper licensing. But despite the official warning, none of the 11 operators have halted operations in Maryland, according to the MLGCA's latest findings.
A growing trend in enforcement
The crackdown on these operators comes amidst increased regulatory action against unlicensed gaming platforms across the country. Maryland's move follows a trend of state-level enforcement actions against sweepstakes operators and offshore sportsbooks. Earlier this year, Bovada, a major offshore betting platform, was issued C&D orders in multiple states and subsequently withdrew from the Maryland market. In the meantime, lawmakers are proposing bills left and right that seek to limit or even ban these sweepstakes casinos and gaming operators outright, such as a recent bill filed in Mississippi.
It's apparent that state regulators nationwide have been closely monitoring sweepstakes models, with some jurisdictions considering new legislation to explicitly define and regulate their legality. While some states, like the aforementioned Mississippi, have moved to ban certain sweepstakes-based gaming formats, others continue to allow them under existing laws.
What's next?
The MLGCA has not disclosed whether further action will be taken against the 11 operators if they continue to serve Maryland customers. However, regulatory agencies often escalate enforcement through fines or legal proceedings if C&D letters are ignored. With no immediate compliance from the targeted companies, Maryland lawmakers and gaming officials may push for stricter measures to enforce compliance.
As the legal landscape around online gaming continues to evolve, both operators and regulators face increasing pressure to clarify the boundaries between lawful gaming and unauthorized gambling. The coming months may provide greater insight into how Maryland and other states will handle the ongoing debate over the legality of sweepstakes-based gaming platforms and offshore sportsbooks.
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