BALTIMORE — The Mayor and City Council, represented by the Baltimore City Law Department and DiCello Levitt, have filed a lawsuit against six major social casino operators.
According to the lawsuit, the companies violated Baltimore’s Consumer Protection Ordinance by operating illegal online gambling platforms disguised as lawful sweepstakes.
All of the defendants - Chumba Casino and Lucky L and Slots (VGW Holdings), McLuck (B2Services), Pulsz Casino (Yellow Social Interactive Limited), Stake.us (Sweepsteaks Limited), High 5 Games (High 5 Entertainment, LLC), and Fortune Coins (Blazesoft Ltd.) — are largely foreign-owned corporations incorporated in Malta, Cyprus, Estonia, and Canada.
Authorities say these companies, which were not authorized to operate in Maryland, are making their platform easily accessible, extracting millions of dollars while dodging state regulation, taxation, and consumer safeguards.
"We're talking about foreign companies operating illegally in Baltimore and causing real harm to our residents," says Mayor Brandon M. Scott.
"Many of you remember that last year we announced a similar lawsuit against DraftKings and FanDuel for their deceptive practices. We will not sit by while companies break the law to steal Baltimoreans' hard-earned money, whether that is in person or in this fashion."
Allegedly, the companies' platforms were run through “dual currency” systems. Users purchase virtual coins with real money, then use the virtual money for the chance to win cash prizes.
In addition, these platform interfaces have alleged cartoonish, videogame-style designs and are marketed as “free games” or “social entertainment” on platforms such as TikTok, YouTube, and Instagram.
As a result, they pull in minors and young folks as users with minimal age-verification.
“These companies are targeting our communities, including young people and minors, and profiting while ignoring the law," says Mayor Scott.
"No company, especially those operating from overseas, gets to profit here while flouting our laws and endangering our residents.”
The city's complaint serves a dual purpose as a public health and consumer protection intervention, as the lawsuit says these companies "contribute nothing to public revenues or addiction-treatment services, while externalizing the costs of gambling addiction onto Baltimore families and municipal systems."
The lawsuit seeks civil penalties, injunctive relief, restitution for affected consumers, and disgorgement of ill-gotten profits. A copy of the complaint is available online here.
