City of Baltimore Files Major Civil Lawsuit Against Six Sweepstakes Casino Operators Over "Illegal" Dual-Currency Platforms

Baltimore files a lawsuit against six sweepstakes casino operators, alleging their dual-currency models are illegal gambling. Read the latest on the city's crackdown.

By: AXL Media

Published: Mar 5, 2026, 10:50 AM EST

Source: The information in this article was sourced from Gambling Insider

Baltimore Takes Aim at Offshore Sweepstakes Giants

The City of Baltimore has launched a significant legal offensive against the sweepstakes casino industry, filing a civil lawsuit on March 4, 2026, in the Circuit Court for Baltimore City. The complaint names six prominent operators: VGW Holdings (Chumba Casino, LuckyLand Slots), B2Services (McLuck), Yellow Social Interactive (Pulsz), Sweepsteaks Limited (Stake.us), High 5 Games (High 5 Casino), and Blazesoft (Fortune Coins). City officials allege that these companies are running illegal online gambling operations disguised as lawful social sweepstakes, thereby flouting Maryland law and endangering residents.

The "Dual-Currency" Model Under Scrutiny

At the heart of the city's legal argument is the industry-standard dual-currency system. Baltimore alleges that when users purchase "gold coins" (virtual currency for fun), they receive "sweeps coins" as a bonus. Because these sweeps coins can be wagered on games of chance and later redeemed for cash, prizes, or cryptocurrency, the city argues the model meets the legal definition of gambling: consideration (payment), chance (random outcome), and prize (redemption). The lawsuit contends that this structure is a deceptive attempt to avoid the oversight and taxes required of legitimate gambling operations in Maryland.

Allegations of Targeting Youth and Ineffective Verification

Mayor Brandon Scott and City Solicitor Ebony Thompson have underscored the social risks posed by these platforms, claiming they use "cartoonish packaging" and mobile-game mechanics popular with adolescents to lure younger audiences. The complaint cites celebrity endorsements—including rapper Drake—and influencer marketing on TikTok and YouTube as evidence of a strategy aimed at minors. Furthermore, Baltimore alleges that the platforms’ age-verification controls are minimal and easily bypassed, allowing underage users to engage in what the city describes as "an illegal gambling operation dressed up as a children’s game."