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

Written by :

Gilbert Horowitz

Published on :

4 March, 2026

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.