Baltimore Becomes Second U.S. City to Sue Sweepstakes Casinos

Submitted by Gilbert Horowitz on

Written by :

Gilbert Horowitz

Published on :

Baltimore city skyline

The Mayor and City Council, represented by the Baltimore City Law Department and DiCello Levitt, filed a lawsuit against six major social casino operators on Wednesday, making Baltimore the second U.S. city to take action against the sweepstakes casino sector. 

These casinos include Chumba Casino and Lucky L and Slots (VGW Holdings), McLuck (B2Services), Pulsz Casino (Yellow Social Interactive Limited), Stake.us (Sweepsteaks Limited), High 5 Games (High 5 Entertainment, LLC), and Fortune Coins (Blazesoft Ltd.). 

According to the lawsuit, the companies violated Baltimore’s Consumer Protection Ordinance by operating illegal online gambling platforms disguised as lawful sweepstakes.

Unlike a real money online casino, sweepstakes - or social casinos - is an online platform that allows users to play casino-style games, including slots, bingo, table games, and even live casino games, using virtual currency instead of real money.   These types of online casinos rely on additional real money purchases once the free play component is exhausted.  In contrast, real money online casinos require a small deposit that can be increased through wins.  Free play and cash bonuses are typically offered as well. 

Authorities say these companies extracted millions of dollars despite billing themselves as "free to play" while dodging state regulation, taxation, and consumer safeguards.

The state of Maryland has also sent out cease and desist letters to various sweepstakes casino operators. 

Los Angeles Also Has Taken Action Against the Sweepstakes Casino Sector 

In September 2025, the Los Angeles City Attorney filed a civil lawsuit against Stake.us, a sweepstakes casino linked to the global crypto casino Stake.

The suit alleges the platform operates an illegal online gambling enterprise disguised as a “social” or sweepstakes casino.

It also named suppliers and related companies that allegedly helped run the platform.

California recently passed a law banning sweepstakes casinos and specifically making it unlawful to offer a “dual currency” system common with most of these sites. Users purchase virtual coins with real money, then use the virtual money for the chance to win cash prizes.

  • Gilbert Horowitz, Gambling911.com 

 

Related Content

Bally's Secures Funding for Bronx Casino as Chicago Project Solvency Concerns Still Loom Large

Bally's Secures Funding for Bronx Casino as Chicago Project Solvency Concerns Still Loom Large

Bally's Corporation advised investors this week that its $560M financing package will help its planned $4B Bronx casino resort move forward....though questions still remain as its Chicago project has been halted.
FanDuel Refunds Following Sunday NFL Kickoff Downtime

FanDuel Refunds Following Sunday NFL Kickoff Downtime

There were more than 300 reports of problems, and "Is Fanduel down" was trending on Google. So was "fanduel content unavailable."
Female Athletes Enraged Over Sydney Sweeney Nude NoVig Prediction Market Ad

Female Athletes Enraged Over Sydney Sweeney Nude NoVig Prediction Market Ad

Days after Sydney Sweeney appeared in provocative poses appearing to be entirely nude for a prediction market video advertisement, a number of female athletes have expressed outrage.
Quick Hit Link Jackpot Pays Out Big at Okeechobee Florida Casino

Quick Hit Link Jackpot Pays Out Big at Okeechobee Florida Casino

The $31,061.70 jackpot was hit courtesy of a $6 bet on a 1-cent denomination machine.