In a cease-and-desist letter dated March 18, the Maryland Lottery and Gaming Control Agency (MLGCA) accused High Entertainment, the company behind High 5 Casino, of offering online casino games in Maryland without any legal authority to do so.
The letter, signed by the agency’s Managing Director of Gaming, Michael Eaton, is blunt:
“Online casino gaming (also known as iGaming) is not permitted in Maryland and an online operator is prohibited from offering any casino gaming unless licensed by the Commission,” Eaton wrote. “The Commission has no record of High 5 Casino being issued a sports wagering license, a casino gaming license or registration as a fantasy competition operator.”
The company has until 5 p.m. ET on April 2 to explain what it’s offering Marylanders, and either prove it’s allowed or confirm that it will stop.
What Maryland Wants
The MLGCA isn’t just asking High 5 to pack up and leave. As with its letter to VGW (Chumba Casino), the agency is also asking for a legal explanation, if one exists, justifying why the company believes it can operate without state approval.
The letter requests that High 5 submit:
“Any legal analysis or opinion interpreting Maryland law that concludes, advises, or suggests that High Entertainment may legally offer sports wagering, casino games or fantasy competition games in Maryland without Commission registration or licensure.”
So far, High 5 has stayed quiet, declining to comment publicly. But the letter makes the consequences of silence clear: ignoring the request could jeopardize the company’s future chances of securing any kind of license in Maryland, whether for sports betting, casino, or otherwise.
Part of a Bigger Pattern
High 5 is the latest in a line of online gaming platforms Maryland has moved against. In recent months, the state’s gaming regulator has sent cease-and-desist letters to several others, including VGW (Chumba Casino), BetUS, Fortune Coins, McLuck, Golden Hearts, and Zula. Most of these sites use sweepstakes or social casino models, games that look and feel like gambling but are marketed as free-to-play or promotional.
For a while, that model flew under the radar. But now, Maryland is taking a firmer stance. Now, the agency has started publicly listing companies that receive enforcement letters, an indication that it’s getting more serious about pushing unlicensed operators out of the market.
Trouble Beyond Maryland
If Maryland is a warning, Connecticut is a full-blown crisis for High 5.
In Connecticut, the state’s Department of Consumer Protection is pursuing over 1,000 criminal charges against the company. Regulators allege that High 5 misrepresented its legal standing to players and is operating illegally in the state.
In response, High 5 recently announced plans to exit all six U.S. states where online casino gaming is regulated, including New Jersey and Pennsylvania. The company, in a statement, said it “has always upheld the highest regulatory standards and remains committed to compliance across all jurisdictions.”
What This Means for the Industry
Maryland’s move adds pressure to an already uneasy corner of the gaming world. Sweepstakes and social casinos have built their success in states that don’t allow traditional online gambling, offering casino-style games with just enough distance from real-money betting to avoid regulation. At least, that used to be the case.
Now, states like Maryland and Connecticut are starting to push back. What was once a gray area is looking a lot more black and white. Regulators are less interested in how these platforms describe themselves and more focused on how they actually operate, and what that means for both players and the broader market.
For operators, this could be the start of a difficult phase. The model that worked yesterday may not hold up tomorrow. And for players, especially those who’ve grown used to these platforms being everywhere, the landscape might be about to shift.
Blaise Luis
