VGW Faces Regulatory Challenges in Maryland

VGW Faces Regulatory Challenges in Maryland

• VGW has come under scrutiny in Maryland, marking the latest move against the industry.
• The company is required to halt operations and furnish further information.
• Non-compliance could lead to the future prohibition of entry into the state.

The Maryland Lottery and Gaming Control Agency has initiated action against another operator within the state, focusing its efforts on Virtual Gaming Worlds, the proprietor of Chumba Casino. Known as VGW, the company has been issued a legal notification by the regulator through a cease-and-desist letter, which demands that the company comply and terminate its operations within a ten-day window from the notice receipt.

VGW Comes Under Fire in Maryland as Scrutiny Intensifies on Sweepstakes Industry

The notice was dispatched to VGW, also responsible for operating LuckyLand Slots, Global Poker, and other brands, on March 12. This mandates that the company adhere to the request and cease offering its services within the state by March 22, at least temporarily.

Furthermore, VGW is required to provide a written response to the regulator by March 27, addressing various concerns related to its operations. Maryland accuses VGW of conducting a form of gambling without the requisite licensing to do so.

VGW must formally address the Maryland Lottery and Gaming Control Agency, either confirming or denying the operation of gaming products within the Old Line State. Additionally, VGW is obligated to present the regulator with a comprehensive and detailed account of the types of products it is offering to local consumers.

This situation represents the latest chapter in the ongoing saga involving social casinos and sweepstakes operators. A growing number of U.S. local governments have adopted a more assertive stance towards this sector, with Maryland being among the states expressing a critical viewpoint on the matter.

VGW Must Disclose All Gaming Operations to the Regulator

Mississippi is already on the verge of prohibiting the sector, while New Jersey and New York are contemplating similar measures to outlaw the activity. Sweepstakes have come under intense examination from regulators, trade organizations, and tribal entities, accused of facilitating a form of gambling without obtaining the necessary licenses akin to those held by regulated companies.

The industry has rejected these accusations, contending that the sweepstakes model is rooted in legal precedent and asserting that the companies involved are not violating any laws. Nevertheless, the Maryland Lottery and Gaming Control Commission has opted to regard VGW as an organization offering a form of gambling without the proper licensing.

In its statement, the regulator noted that it ‘had no record’ of VGW possessing such licenses while still engaging in these activities.