High 5 Games issued with cease-and-desist order in Maryland
Sweepstakes casino asked to prove its right to operate in the state after the Maryland Lottery and Gaming Control Agency claimed it has “no record” of issuing any license
The Maryland Lottery and Gaming Control Agency (MLGCA) has sent a cease-and-desist letter to High 5 Entertainment, parent company of sweepstakes casino platform High 5 Casino, for operating in the state.
The letter, signed by MLGCA managing director for gaming Michael Eaton, claims High 5 Casino is operating in the state “without legal authority to do so.”
Maryland’s regulator has claimed it has “no record” of High 5 Entertainment being issued a license for sports betting, casino gaming, or fantasy sports, while igaming isn’t currently legal in the Old Line State.
The MLGCA has given High 5 Entertainment until April 2 to respond to the cease-and-desist letter, asking the company to provide details of any casino game, sports betting product or fantasy sports competition it is offering, if applicable.
High 5 Entertainment has also been asked to provide “any legal analysis or opinion” on existing Maryland laws which mean the company is able to operate in the state.
If the company fails prove its products have been licensed correctly in its response, it has been asked to cease operating within 10 days.
The letter read: “It has come to the MLGCA’s attention that High 5 Casino is offering and conducting online gaming activities in Maryland without the authority to do so.
“Maryland has enumerated laws that identify the types of gaming that may be offered in the state. If the game or activity doesn’t fit within one of those enumerated provisions, then that game or activity is not permitted in the state.
“The Commission has no record of High 5 Entertainment being issued a sports wagering license, a casino gaming license, or registration as a fantasy competition operator.
“Failure to provide the required information may jeopardise the ability of High 5 Entertainment to ever be issued a license for sports wagering or gaming, registration as a fantasy competition operator, any other license, registration, or certification from the Commission in the future.”
The letter from the Maryland regulator followed the same template as its cease-and-desist it issued to Virtual Gaming Worlds earlier this month as part of its clampdown on sweepstakes operators.
Earlier this week, High 5 Games received a suspension order in Connecticut following allegations of running an “illegal online casino.”
Connecticut’s Department of Consumer Protection (DCP) investigated the sweepstake casino platform, alleging it was marketing itself as a legal online casino and accepting bets from players in the state.
The investigation also found High 5 Casino accepted bets from self-excluded players, 108 of whom lost close to $300,000 on the platform.
High 5 Games responded to the decision saying it would fully cooperate with Connecticut’s regulator to resolve the matter and “maintain the integrity of our gaming licenses.”
Last week, High 5 Casino also exited the New Jersey market, informing customers in the state of its decision on March 14.
EGR North America has contacted High 5 Entertainment for comment.