Major sweepstakes operators have also received cease-and-desist letters from other US jurisdictions requesting that they discontinue providing gaming to local players.
Virtual Gaming Worlds (VGW), a massive sweepstakes casino, has received a cease-and-desist letter from the Maryland Lottery and Gaming Control Agency. The regulator claimed that the operator had to withdraw from the market since its items amounted to unlawful gaming.
This regulatory action is in line with a nationwide backlash against the sweepstakes concept.
Maryland Takes Sweepstakes Seriously
Maryland has stepped up its anti-sweepstakes efforts as a potential ban on social casinos gained momentum. VGW received an official cease-and-desist letter from the Maryland Lottery and Gaming Control Agency on March 12 requesting that it stop operating an unauthorized gaming business in the state.
To put it in perspective, sweepstakes are a form of dual-currency game in which participants bet digital currency in hopes of winning cash or cash equivalents. Although part of this digital currency is available to players for free, if they want to play more, they can purchase it.
Proponents of sweepstakes have maintained that this kind of product does not qualify as gambling because players can theoretically play and win for nothing. However, detractors have pointed out the parallels to internet casinos.
Sweepstakes have primarily been found on the US grey market up to now. Nevertheless, a number of jurisdictions have recently decided to make them illegal.
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VGW Could Face a Maryland Ban
The Maryland government compared VGW’s activities to gambling in its letter. For background, the operator operates a number of well-known casinos with sweepstakes, such as Chumba Casino, LuckyLand Slots, and Global Poker.
Additionally, the Marland commission reminded everyone that online sports betting and online and mobile fantasy contests are the only types of online gaming that are allowed. However, playing at an online casino is still illegal.
Consequently, VGW was found to have seriously violated the state’s gaming regulations. The operator has until the 27th of March to reply to the letter. Furthermore, within ten days of receiving the letter, it had to cease operations.
VGW faces dire repercussions if it disregards the agency’s regulations. The operator might, among other things, be permanently barred from the state, which would prevent it from ever obtaining a gaming license in Maryland.
Under Fire: Sweepstakes
As previously stated, the regulatory action taken against VGW by the Maryland Lottery and Gaming Control Agency is by no means uncommon. Major sweepstakes operators have also received cease-and-desist letters from other US jurisdictions requesting that they discontinue providing gaming to local players.
Meanwhile, legislators in several states have put forward plans to permanently outlaw sweepstakes operators. Such initiatives have received equal backing from commercial operators, tribal governments, and regulatory bodies, who claim that uncontrolled sweepstakes harm the legal sector.
Operators of sweepstakes, meanwhile, have stated that they are open to regulation and don’t mind paying taxes as long as they are able to lawfully sell their goods.
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