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

Polymarket

Wanna Bet? Washington Steps Up Scrutiny of Prediction Markets

As the United States was preparing a daring mission to rescue an airman whose fighter jet was shot down by Iran, there was money to be made.
Legal

Ninth Circuit of Appeals Judges Skeptical Over Prediction Markets Claim They Can Bypass State Laws

U.S. Circuit Judge Ryan Nelson bluntly rejected Crypto.com attorney Shay Dvoretzky’s argument that exchange-traded contracts differ in substance from sportsbook wagers.
Guitar Hotel Hollywood Florida

May 2026 Casino Promotions and Events at Seminole Hard Rock Hotel & Casino Hollywood

Gambling911.com has received the May 2026 promos and entertainment schedule for the fabulous Hard Rock Hotel & Casino in Hollywood, Florida, our own backyard.
Dave & Busters

Suit Against Dave & Busters in South Carolina Court Claims Arcade Games Are Unlawful Gambling

A state advocacy group filed a suit in the District Court of South Carolina Florence Division late Wednesday April 15 arguing the chain’s games function as unlawful gambling rather than entertainment.