Close-up on a person playing the roulette on a cell phone at a casino to represent online social casinos

City of Baltimore Sues Major Social Casino Operators for Illegal Online Gambling Disguised as Free Games, Sweepstakes

Mar 04, 2026

Lawsuit Alleges Offshore Companies Violated Consumer Protection Laws by Targeting Baltimoreans, Including Minors, With Deceptive Online Gambling Platforms

BALTIMORE March 4, 2026 –The Mayor and City Council of Baltimore, represented by the Baltimore City Law Department and DiCello Levitt, have filed a lawsuit in the Circuit Court for Baltimore City against six major social casino operators. The lawsuit alleges the companies violated Baltimore’s Consumer Protection Ordinance by operating illegal online gambling platforms disguised as lawful sweepstakes.

The defendants — Chumba Casino and LuckyLand 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. Despite lacking authorization to operate in Maryland, the companies allegedly made their platforms readily accessible to Baltimoreans, extracting millions of dollars while evading state regulation, taxation, and consumer safeguards.

“This lawsuit is about drawing a clear line: illegal gambling operations are not welcome in Baltimore,” said Baltimore Mayor Brandon M. Scott. “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.”

The complaint alleges that the defendants’ platforms constitute illegal gambling under Maryland law by using so‑called “dual currency” systems, in which users purchase virtual coins with real money and receive a second currency that can be wagered for the chance to win real cash prizes. According to the Maryland Lottery and Gaming Control Agency, these platforms contain all three elements of gambling — consideration, chance, and prize — and are not legally authorized in Maryland, where casino gambling is permitted only at six licensed, brick‑and‑mortar facilities.

The lawsuit further alleges that the defendants deceptively market their platforms as “free games” or “social entertainment,” even though meaningful play requires real‑money purchases. It also alleges that the companies target minors and young users through cartoonish, videogame‑style designs and advertising on platforms such as TikTok, YouTube, and Instagram.

According to the complaint, the defendants rely on minimal age‑verification measures that are easily circumvented and operate without required responsible‑gambling protections. At the same time, they allegedly contribute nothing to public revenues or addiction‑treatment services, while externalizing the costs of gambling addiction onto Baltimore families and municipal systems.

“This conduct is both a clear violation of Baltimore’s Consumer Protection Ordinance and a serious public health concern,” said City Solicitor Ebony M. Thompson with the Baltimore City Law Department. “These companies are operating illegal gambling platforms while using deceptive practices to avoid oversight and accountability. The City is using its consumer protection authority to stop these unlawful practices and to address the real harm they are causing to Baltimore residents.”

Peer‑reviewed research has linked social casino games to elevated rates of problem gambling, financial distress, and mental health crises, particularly among adolescents and young adults. According to the complaint, the City’s action is intended as both a public health and consumer protection intervention. Unlike licensed Maryland casinos, which are subject to strict regulation and required to fund responsible gaming programs, the defendants allegedly operate outside those safeguards while profiting from addictive behavioral mechanics.

“Baltimore is taking on an industry that has deliberately blurred the line between gaming and gambling to avoid regulation and accountability,” said DiCello Levitt Founding Partner Adam Levitt. “These social casinos are not harmless entertainment. They’re designed to extract money through unfair, abusive, and deceptive practices. We’re proud to stand with the City of Baltimore as it acts to protect its residents, including some of the most vulnerable, and to set an example for other municipalities confronting the same unlawful conduct.”

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.

The legal team in this matter is led by the Baltimore City Law Department’s Ebony Thompson, Sara Gross, and Natalie Neill, and DiCello Levitt’s Adam Levitt, Dan Ferri, and Eaghan Davis.

About DiCello Levitt
At DiCello Levitt, we’re dedicated to achieving justice for our clients through public client, class action, environmental, mass tort, securities, financial services, antitrust, business-to-business, whistleblower, personal injury, and civil and human rights litigation. Our lawyers are highly respected for their ability to litigate and win cases—whether by trial, settlement, or otherwise—for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations—and our capital—on the line for our clients.

DiCello Levitt has achieved top recognition as Plaintiffs Firm of the Year and Trial Innovation Firm of the Year by the National Law Journal, in addition to its top-tier Chambers and Benchmark ratings. For more information about the firm, including recent trial victories and case resolutions, please visit www.dicellolevitt.com.

Media Contact
Caitlin Whitehurst, Director of Communications, cwhitehurst@dicellolevitt.com

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