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Baltimore is officially tired of being a playground for uninvited guests. City officials filed a major lawsuit March 4 against six social casino operators, signaling a shift from warnings to legal action.
While these companies attempt to blend into the scenery by labeling themselves “free-to-play” social clubs, the city alleges they are actually running illegal gambling operations that target vulnerable residents.
Baltimore Mayor Brandon Scott is seeking more than an apology; he is pushing for a total shutdown. He noted that while Maryland allows gambling at only six specific, highly regulated brick-and-mortar locations, these digital platforms have been “squatting” in the city without a license. By bypassing official regulations, they evade taxes and skip funding the addiction-treatment services that their “addictive mechanics” make necessary.
Allegations of social casinos targeting minors
City officials are particularly concerned about who these companies are inviting to the table. The lawsuit alleges that defendants—including popular sweepstakes casino companies, VGW (Chumba/LuckyLand), Stake.us, and McLuck—use “colorful, cartoonish” designs specifically meant to attract minors.
By flooding platforms like TikTok, YouTube, and Instagram with video-game-style ads and flashy influencers, the city claims the companies have framed gambling as harmless entertainment for teenagers.
City Solicitor Ebony Thompson called it a serious public health concern, noting that the minimal age checks on these sites are about as effective as a “keep out” sign on a screen door. According to news by WBAL NewsRadio, Scott said:
“This lawsuit is about drawing a clear line: Illegal gambling operations are not welcome in Baltimore. These companies are targeting our communities, including young people and minors, and profiting while ignoring the law. No company, especially those operating from overseas, gets to profit here while flouting our laws and endangering our residents.”
International entities named in lawsuit
The city is not just targeting local startups. Most of these “players” are foreign-owned corporations based in Malta, Cyprus, Estonia, and Canada. The defendants include:
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VGW Holdings
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B2Services
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Yellow Social Interactive
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Sweepstakes Limited
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High 5 Entertainment
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Blazesoft Ltd.
A push for restitution and regulation
Baltimore is demanding the return of “ill-gotten” profits, restitution for residents, and civil penalties that could reach into the millions.
This marks the second time the city has used its Consumer Protection Ordinance as a legal tool, having already sued DraftKings and FanDuel earlier this year.
While the city fights these unregulated “ghost casinos,” state lawmakers are debating a 2026 referendum that might bring legal, regulated online casinos to Maryland. Until then, Mayor Scott is making it clear: If you want to bet in Baltimore, you must do it by the book.
“Baltimore is taking on an industry that has deliberately blurred the line between gaming and gambling to avoid regulation and accountability,” said DiCello Levitt Founding Partner Adam Levitt. “These social casinos are not harmless entertainment. They’re designed to extract money through unfair, abusive, and deceptive practices.”
