Baltimore Files Lawsuit Against Chumba Casino LuckyLand Slots Pulsz McLuck Stake.us And Fortune Coins

Baltimore officials have filed a sweeping new lawsuit targeting six social casino operators, alleging they’re running illegal online gambling in the city under the guise of “sweepstakes” entertainment.

Baltimore takes aim at sweepstakes-style casinos in new court filing

The complaint was filed in the Circuit Court for Baltimore City by the mayor and city council, alongside the Baltimore City Law Department and the law firm DiCello Levitt. City leaders argue the operators violated Baltimore’s Consumer Protection Ordinance by offering casino-style games that, in practice, function as unlawful gambling—despite being marketed as free or social play.

At the center of the dispute is the sweepstakes model that has expanded quickly across the U.S., often featuring slot-style and casino-style gameplay paired with cash-prize redemptions.

Who Baltimore is suing: the operators behind the big names

The defendants named in the filing include:

VGW Holdings (operator of Chumba Casino and LuckyLand Slots), B2Services (McLuck), Yellow Social Interactive (Pulsz), Sweepsteaks (Stake.us), High 5 Entertainment, and Blazesoft (Fortune Coins).

The case name-checks several of the most recognizable social casino brands—among them Chumba Casino, LuckyLand Casino, Stake Casino’s U.S.-facing sweepstakes platform via Stake Casino, and Fortune Coins Casino—indicating Baltimore is not just targeting a niche segment, but some of the category’s largest operators.

The “dual currency” system at the heart of the allegations

Baltimore officials say these platforms use a “dual currency” structure designed to look like casual gaming while delivering gambling-like outcomes.

According to the complaint, users buy virtual coins with real money, then use a secondary currency to play casino-style games for the chance to win cash prizes. City attorneys argue this setup turns what’s marketed as social entertainment into gambling activity—especially when the purchase flow, prize mechanics, and gameplay mirror real-money online casinos.

Marketing claims vs. alleged reality: “free games” that can cost real money

The lawsuit also takes issue with how these products are promoted. Baltimore alleges the platforms present themselves as “free games” or “social entertainment,” including ads and influencer-style promotions on social platforms such as TikTok and Instagram.

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

What Baltimore wants from the court: penalties, restitution, and a hard stop

The city is seeking civil penalties, restitution for affected consumers, injunctive relief, and recovery of profits authorities allege were unlawfully generated. If granted, the remedies could force operational changes, restrict availability within city limits, and potentially create a playbook for other municipalities looking to challenge sweepstakes-style casino models.

This isn’t Baltimore’s first high-profile betting fight

The filing comes after Baltimore officials sued Draft Kings Sportsbook and FanDuel last April, alleging the companies exploited vulnerable bettors. With this latest action, city leaders are signaling an escalating enforcement posture—this time focused on social casino products that officials say blur the line between entertainment and illegal gambling.

The case now moves to the court system, where the operators are expected to respond and the sweepstakes model itself may face sharper scrutiny under local consumer protection and gambling laws.