The Maryland Lottery and Gaming Control Agency (MLGCA) recently issued cease-and-desist letters to 11 illegal gambling operators in the state. The MLGCA has been actively addressing illegal online gambling by sending cease-and-desist letters. According to a notice issued by the regulator on illegal online gaming activities, cease and desist letters were issued to Fortune Coins, Golden Hearts Games, McLuck Casino, Zula Casino, Stake.US, Rebet, BetUS, BetNow, SlotsandCasino, Everygame Sportsbook, and BetAnySports. Interestingly, only six out of 11 responded to the regulator while none of them have agreed to block Marylanders’ access. Golden Hearts, Zula, McLuck, REBET, and Stake US are the companies that responded, according to a report by The Closing Line.

Maryland Lottery and Gaming Control Agency’s actions

The MLGCA issued cease-and-desist letters to both responsive and non-responsive operators. The companies admitted to receiving the letters from Maryland regulators but still operated in the state. This revealed that, without imposing penalties, compliance might be difficult to enforce. Meanwhile, the offshore operators did not reply to the cease-and-desist letters from Maryland and continued their operations. Their defiance highlights the main drawback of states regulating entities beyond state lines.

Maryland has written follow-up letters to those operators and begun targeting payment processors enabling these sites’ transactions. Even under the auspices of the MLGCA, all 11 operators are still contacting Maryland. This defiance illustrates the challenges faced in enforcing online gambling laws. The MLGCA will send follow-up letters identifying the illegal payment processors who facilitate these operations in furtherance of its work.

National context of sweepstakes enforcement

Michigan has taken similar steps by sending cease-and-desist letters to several operators for promoting unlicensed online lotteries and iGaming. Virtual Gaming World (VGW) has faced scrutiny from various states, including Nevada, Delaware, Idaho, and Washington, which have served multiple cease-and-desist orders.

The actions taken by Maryland are part of a more considerable nationwide effort that has already resulted in a full-blown appeal from the American Gaming Association (AGA). The AGA has issued a statement urging lawmakers and regulators to take serious action against illegal operators. Regulating offshore sportsbooks has always been challenging due to their location outside U.S. jurisdiction. Strategies such as targeting financial channels and increasing public awareness are being employed to mitigate their impact.

Enhanced regulations against unregulated betting operators are becoming more normative, with an average rise in online gambling while protecting the consumer and ensuring fair play. These efforts are changing how online gambling is conducted, which has implications for operators and consumers as they adapt to lawful ways.