Baltimore Takes Legal Action Against Sweepstakes Casinos

Baltimore officials have initiated a civil lawsuit against several companies that operate sweepstakes casino platforms, alleging that the services amount to illegal online gambling accessible to residents within the city.

The complaint was filed on March 4 in the Circuit Court for Baltimore City. Six companies are named as defendants: B2 Services, Blazesoft Ltd., High 5 Entertainment, Stake.us, VGW Holdings, and Yellow Social Interactive Limited. City officials argue that these operators provide casino-style gaming services to Maryland residents even though state law does not authorize online casino gambling.

According to the filing, the companies promote their products as sweepstakes-based entertainment to suggest they comply with existing laws. Baltimore authorities contend that this characterization does not change the underlying activity, which they claim functions as gambling. The city alleges the companies made their platforms available to Baltimore residents without holding authorization to conduct gambling operations in the state.

Mayor Brandon M. Scott described the legal action as an effort to enforce local law and prevent unregulated gambling activity within the city. “This lawsuit is about drawing a clear line: illegal gambling operations are not welcome in Baltimore,” Scott said. “These companies are targeting our communities, including young people and minors, and profiting while ignoring the law. No company, especially those operating from overseas, gets to profit here while flouting our laws and endangering our residents.”

Lawsuit Targets Dual-Currency Sweepstakes Model

Central to the dispute is the business structure widely used by sweepstakes casino platforms. These sites typically rely on a dual-currency system that separates gameplay from direct wagering with traditional money.

Users generally purchase a virtual currency, often labeled “gold coins,” which can be used to play games on the platform. Alongside that currency, players may receive another type of virtual token referred to as “sweeps coins.” These tokens can be wagered in casino-style games and may later be redeemed for prizes, including cash or cryptocurrency.

Baltimore officials argue that this system effectively replicates gambling. Their position is that the structure meets the key legal elements of gambling activity because participants pay money to obtain access to the games, outcomes depend on chance, and successful play can result in prizes that have real-world value.

City Solicitor Ebony Thompson stated that the operators are attempting to avoid regulatory scrutiny by presenting their services as promotional sweepstakes rather than gambling platforms. “These companies are operating illegal gambling platforms while using deceptive practices to avoid oversight and accountability,” Thompson said.

The lawsuit seeks several remedies from the court. Baltimore is requesting civil penalties against the companies, financial restitution for affected consumers, and an injunction that would prevent the platforms from continuing operations in the city. Authorities are also pursuing recovery of profits they claim were obtained through unlawful activity.

City Raises Concerns About Marketing Practices

In addition to the legal arguments surrounding the sweepstakes model, the complaint highlights concerns about how the platforms are designed and promoted. Officials claim the games incorporate visual elements and mechanics that resemble those found in mobile titles commonly played by younger audiences.

The filing states that the platforms use “colorful, cartoonish packaging—animated characters, spinning treasure chests, and ‘leveling up’ mechanics—drawn directly from the mobile games popular with children and adolescents.” City officials argue that these features increase the appeal of the platforms among younger users.

Marketing strategies cited in the complaint include advertising campaigns carried out through social media and influencer partnerships. The city also references celebrity endorsements, including appearances linked to Drake, and promotion on widely used platforms such as TikTok and YouTube.

The lawsuit describes the services as “An illegal gambling operation dressed up as a children’s game, marketed to young audiences, and operated from offshore jurisdictions without any of the consumer protections Maryland requires of legal gambling operations.”

Legal challenges related to sweepstakes casino platforms have been increasing across the United States. Court filings indicate that more than 100 individual lawsuits and class-action cases have been brought against companies operating similar services.

At the same time, lawmakers in Maryland are examining the broader issue of online gambling regulation. Proposed legislation under discussion could allow voters in the November 2026 election to decide whether regulated online casino gaming should be permitted across the state.

Baltimore’s lawsuit represents one of the latest legal efforts by local authorities to address sweepstakes casino platforms operating in jurisdictions where online casino gambling is not currently authorized.

Source:

Baltimore Files Lawsuit Over Sweepstakes Casino Platforms, realmoneyaction.com, March 9, 2026.