Maryland Cracks Down on Sweepstakes Casinos and Prediction Markets
Summary
The Maryland Lottery and Gaming Control Agency (MLGCA) has stepped up enforcement against unlicensed sweepstakes casinos and warned regulated sportsbooks that involvement with prediction markets could jeopardise their licences. The regulator issued a second cease-and-desist to Virtual Gaming Worlds (VGW) brands Lucky Land Slots and Chumba Casino and demanded a response within 10 days. Separately, the MLGCA made clear that offering or partnering with prediction markets without a Maryland sports wagering licence is unlawful — a stance linked to its ongoing legal dispute with prediction platform Kalshi.
Key Points
- MLGCA sent a second cease-and-desist to VGW subsidiaries Lucky Land Slots and Chumba Casino for alleged illegal online gaming in Maryland.
- Maryland permits only online sports betting and authorised mobile fantasy contests; online casino-style offerings are banned irrespective of labels like sweepstakes or social gaming.
- Lucky Land Slots and Chumba have 10 days to reply and could face obstacles to future licence applications if non-compliant services continue.
- The regulator warned licensed sportsbooks that participation in prediction markets could lead to licence revocation, extending concerns to operators engaging in prediction markets in other jurisdictions.
- Maryland is the eighth US jurisdiction to issue warnings about prediction markets; major operators (FanDuel, DraftKings, Fanatics) are eyeing the space.
- The move ties into Maryland’s legal action against Kalshi, which was ordered to halt operations and is currently involved in appeals at the Fourth Circuit.
Content summary
The MLGCA is treating sweepstakes casinos that mimic online casino gambling as unlawful under state law and has targeted VGW-run Lucky Land Slots and Chumba Casino with a second formal enforcement notice. The regulator insists that names and branding do not exempt operators from Maryland’s prohibition on online casino products unless they hold a specific licence.
The regulator also put regulated sportsbooks on notice: branching into prediction markets or partnering with unlicensed prediction platforms could risk their Maryland sports wagering licences. This warning reflects a broader US trend where multiple states have signalled concern about the prediction market model and its overlap with regulated sports wagering.
Maryland’s approach is reinforced by its litigation against Kalshi, with the state having ordered the platform to stop operating earlier in the year and the dispute moving through the courts. The regulator’s twin focus — on sweepstakes casinos and prediction markets — signals a stricter enforcement era in Maryland that could influence operator strategies and partnerships nationwide.
Context and relevance
This is a significant development for operators, affiliates and legal teams tracking US gambling regulation. Maryland’s hard line illustrates regulators’ readiness to treat borderline products (sweepstakes, social gaming, prediction platforms) as gambling when the product’s mechanics mirror casino or sports betting. Operators considering expansion into prediction markets or working with sweepstakes-style platforms should reassess compliance, commercial partnerships and market access strategies.
The decision also matters because it adds momentum to a patchwork of state-level actions that could shape federal and industry responses. Firms such as FanDuel and DraftKings that are exploring prediction-market adjacent offerings should watch these rulings closely — the commercial upside may come with regulatory risk.
Author’s take (Punchy)
Regulators are no longer giving ambiguous products the benefit of the doubt. If you run, partner with, or promote sweepstakes casinos or prediction markets, assume extra scrutiny and prepare to justify your model — or pull back. This isn’t just paperwork: it can stop revenue and block future licence wins.
Why should I read this?
Short version: regulators are cracking down — fast. If you work in gaming, payments, compliance or affiliate marketing, this affects deals, revenue and whether your product can operate in Maryland (and maybe elsewhere). Consider this your heads-up to check contracts and compliance checklists pronto.