Maryland residents are seeing their online casino options dwindling as the state regulator is chasing out the remaining sweepstakes casinos ahead of a possible legislative ban. The bill to prohibit the sweepstakes-based social casino model passed in the Senate last week and is now in the House for consideration. In the meantime, the state’s regulator, Maryland Lottery and Gaming Control Agency (MLGCA) has issued a new series of cease-and-desist letters to major sweepstakes platforms such as Stake.us, Chumba Casino, and High 5 Casino. Other operators were asked to leave earlier this year, alongside some illegal offshore real-money casinos.
Sweepstakes casinos have emerged as popular alternatives to online casinos in many states, including Maryland, with no legal iGaming. These platforms allow users to play casino-style games for fun or participate in sweepstakes promotions for a chance to redeem their winnings for cash prizes. As sweepstakes fall under federal laws, these sites are legal in all states that haven’t explicitly banned them. However, if Maryland moves forward with the ban, residents looking for legal online casinos would need to travel to neighboring states like Pennsylvania, Delaware, or New Jersey.
Some platforms comply with MLGCA, others resist
MLGCA isn’t waiting on lawmakers to ban sweepstakes casinos. It has already begun cracking down. For almost a year, the regulator has issued cease-and-desist letters to multiple platforms, accusing them of operating illegal gambling sites similar to offshore casinos.
In May 2024, MLGCA targeted Stake.us, Golden Hearts, McLuck Casino, and the social sportsbook Rebet. Some have complied, while others continue to operate. Rebet and McLuck, along with McLuck’s sister sites Hello Millions, Jackpota, Mega Bonanza, and SpinBlitz (formerly Scratchful), have all left the state. At the same time, Stake.us and Golden Hearts remain available in the state.
MLGCA continued its crackdown this year. In January, it sent cease-and-desist letters to sister sites Zula Casino and Fortune Coins, but neither platform has complied. Similarly, Virtual Gaming Worlds, the parent company of Chumba Casino and LuckyLand Slots, has ignored a March 12 cease-and-desist letter. In the meantime, company representatives have argued against the bill seeking to ban sweepstakes casinos.
One operator that has swiftly complied is High 5 Casino. After receiving an MLGCA notice on March 18, it updated its terms and conditions the following day, announcing that Maryland users could no longer play in Sweeps Play mode. Players with active accounts have until March 26 to use and redeem eligible Sweeps Coins. The quick exit is unsurprising, given that High 5 Casino has left several states recently, and its parent company, High 5 Games, had its Connecticut supplier license suspended.
Meanwhile, some sweepstakes casinos have left Maryland voluntarily, including:
- Carnival Citi
- Modo.us
- Spree
Lawmakers look to ban sweeps casinos
As multiple operators have ignored MLGCA’s letters, Maryland lawmakers have introduced a bill banning the platforms. SB 860, introduced by Sen. Paul Corderman, passed the Senate with a 47-0 vote on March 12, making Maryland only the second state, after Mississippi, to have a legislative chamber approve a ban on sweeps casinos. The bill now awaits further action in the House Ways and Means Committee. The committee heard arguments on March 20 but did not vote. The committee has not scheduled the bill for discussion in its upcoming meetings on March 25, 26, or 27.
Maryland is not the only state that is considering banning sweepstakes casinos. In New York, a similar bill has advanced to the Senate floor. Meanwhile, in New Jersey, Assemblyman Clinton Calabrese, who initially sought to regulate the platforms, has introduced a new bill to prohibit them instead.
Whether SB 860 will move to the House floor for a vote remains unclear. In the meantime, sweepstakes casinos continue operating as an iGaming alternative in Maryland. If the state ultimately bans them, residents may turn their hopes toward the legalization of online casinos. However, the odds are not promising. An iGaming bill failed to pass last year, and while a new proposal is still active this year, it faces an uphill battle amid strong opposition from retail casinos and labor unions.
