Baltimore sues six sweepstakes casino operators under consumer protection law

Baltimore filed suit on March 4 against six companies behind some of the largest sweepstakes casinos, alleging they run illegal gambling operations in the city. The complaint, brought in the Circuit Court for Baltimore City by the city's Law Department and the law firm DiCello Levitt, names VGW Holdings (Chumba Casino and LuckyLand Slots), B2Services (McLuck), Yellow Social Interactive (Pulsz), Sweepsteaks Ltd. (Stake.us), High 5 Entertainment (High 5 Casino) and Blazesoft (Fortune Coins).

The city contends that the dual-currency model, in which users buy coins and wager a second currency for cash prizes, is gambling under Maryland law, and that marketing the sites as free games or social entertainment is deceptive when meaningful play requires purchases. It also accuses the operators of drawing in minors with cartoonish designs and social media ads, relying on weak age checks and skipping responsible-gambling protections.

Baltimore wants civil penalties, restitution for consumers, disgorgement of profits and an injunction. Mayor Brandon Scott said illegal gambling operations "are not welcome in Baltimore."

The case relies on the city's Consumer Protection Ordinance, a different route from the state bans and attorney general actions seen elsewhere. Most of the defendants are incorporated abroad, in Malta, Cyprus, Estonia and Canada, according to the city's counsel.

At the time of filing, Maryland lawmakers were weighing two sweepstakes ban bills; both later died in the state Senate.