Baltimore officials have launched legal action against several sweepstakes casino companies, accusing them of operating illegal online gambling services accessible to residents in the city.
The civil complaint, filed March 4 in the Circuit Court for Baltimore City, names six operators: B2 Services, Blazesoft Ltd., High 5 Entertainment, Stake.us, VGW Holdings, and Yellow Social Interactive Limited. According to the lawsuit, the companies present their offerings as legal sweepstakes-based games even though Maryland law does not permit online casino gambling.
Baltimore contends the companies violated the city’s Consumer Protection Ordinance by offering casino-style games to users in the city without authorization to provide gambling services in the state. City officials also argue that several of the companies operate from jurisdictions outside the United States while still making their platforms available to local residents.
“This lawsuit is about drawing a clear line: illegal gambling operations are not welcome in Baltimore,” Baltimore Mayor Brandon M. 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.”
Dispute Centers on Dual-Currency System
The lawsuit focuses on the “dual-currency” system widely used by sweepstakes casino platforms.
Under this structure, users buy virtual currency—often called “gold coins”—to access games. At the same time, the platforms provide a second currency known as “sweeps coins.” Players can wager these coins on casino-style games and later redeem them for cash, prizes, or cryptocurrency.
Baltimore argues this system meets the legal definition of gambling because players pay money, games rely on chance, and prizes can be redeemed.
“These companies are operating illegal gambling platforms while using deceptive practices to avoid oversight and accountability,” Baltimore City Solicitor Ebony Thompson said.
The city is seeking civil penalties, restitution for consumers, an injunction to halt operations in Baltimore, and recovery of profits it alleges were generated unlawfully.
Marketing and Youth Targeting Concerns
The complaint also alleges the platforms are designed and marketed in ways that appeal to younger audiences. According to the filing, the games feature “colorful, cartoonish packaging—animated characters, spinning treasure chests, and ‘leveling up’ mechanics—drawn directly from the mobile games popular with children and adolescents.”
Officials also point to influencer marketing, celebrity endorsements including Drake, and advertising on social media platforms such as TikTok and YouTube.
The lawsuit describes the platforms 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.”
Court records show more than 100 individual and class-action lawsuits have also been filed against sweepstakes casino operators. Meanwhile, Maryland lawmakers are considering legislation that could allow voters in the November 2026 election to decide whether regulated online casino gaming should be permitted statewide.
Source:
“Baltimore Sues Social Casinos for Allegedly Offering Illegal Gambling”, yahoo.com, March 5, 2026
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