Maryland wants sweepstakes gaming and offshore betting out of the Old Line State.
Maryland Lottery and Gaming provided Covers with a list of 11 illegal online operators that were sent cease-and-desist letters, including five sweepstakes casinos and one social sportsbook.
The regulatory body said it joined a national effort to “inform the operators that their websites are illegal, and demand that operators block individuals in their state from accessing those sites.”
BREAKING: The Maryland Lottery has sent cease-and-desist letters to 11 illegal online gaming operators; 6 responded, 0 agreed to block access. Follow-up letters are being sent and initial letters to payment processors are in progress, demanding they block access. (h/t @FSDiMasi). pic.twitter.com/TxJvhuSLAk
— Daniel Wallach (@WALLACHLEGAL) January 15, 2025
The sweepstakes companies, an industry that’s come under fire in recent months, responded to the letters. That list includes Golden Hearts, Zula, MC Luck, REBET, Fortune Coins, and StakeUS.
Old Line State gaming regulators also sent letters to five offshore online sports betting and casinos: BetUS, BetNow, Everygame Sportsbook, BetAnySports, and SlotsAndCasino.
The offshore operators failed to respond to Maryland’s letters.
None of the illegal gaming companies have agreed to block access to the state’s residents, Maryland Lottery and Gaming said.
However, regulators are sending “follow-up letters to operators and initial letters to payment processors,” demanding that they comply with Maryland’s request to cease offering accessibility to what the state has deemed illegal websites.
Skirting regulators
Battling offshore sportsbooks is nothing new in the U.S. As sports betting has become legal across 39 states since 2018, governing bodies have long been working to push unregulated, untaxed operators out of those jurisdictions.
Sweepstakes gaming, also known as social casinos and sportsbooks, is gaining more attention throughout the industry.
Lawmakers and regulators are beginning to target websites that look and feel like legal casinos and sportsbooks, but they use a coin-based currency that can be redeemed for cash and prizes. Some sites allow users to obtain free coins, but deposits can be made through traditional banking methods to purchase more coins to play slot games or wager on sports with the ability to win prizes.
Sweepstakes companies are not held to the same regulatory policies as legal gambling operators and don’t pay gaming taxes in those jurisdictions.
The fight
Other states and entities are going after sweepstakes gaming companies, a multi-billion dollar business. In late 2024, a California lawsuit was filed accusing sweepstakes operator High 5 of breaking state law set during the internet cafe era.
Virginia regulators recently discussed taking a stance against offshore operators, primarily Bovada. Michigan stopped access from that operator last year. Florida regulators recently said they plan on targeting illegal gambling companies.
The American Gaming Association, a U.S. industry trade group, sent a memo to state lawmakers and regulators last year asking them to crack down on illegal sweepstakes and offshore operators.
The AGA also teamed up with the Indian Gaming Association and Sports Betting Alliance to urge state attorney generals and law enforcement agencies to take action against sweepstakes and illegal daily fantasy sites.
