Virtual Gaming Worlds is Facing Another Potential Lawsuit in Mississippi
By
Jane Shaw
Senior Editor
Updated: 11/11/2024
We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.
VGW Faces Another Lawsuit
Virtual Gaming Worlds (VGW), a popular provider of sweepstakes casino games and poker, is facing a lawsuit in Mississippi. The lawsuit concerns an alleged breach of the state’s local gambling laws by the company’s various websites and illicit cashback features.
Yet Another Class Action
VGW is frequently scrutinized regarding the legality of its operations. The lawsuit in Mississippi is yet another one in its history. Virtual Gaming Worlds owns Luckyland Slots, Chumba Casino, and Global Poker, the world’s largest sweepstakes poker platform. The brand has a history of such lawsuits in different jurisdictions.
The plaintiff’s attorney, Makayla Darrielle Saulny, states that the Australian-owned company, VGW, should reimburse all Mississippi customers for losses made while playing their platforms during the last three years. Just like with other lawsuits that the company has faced, the accusations are based on a section of the Mississippi Code, which allows individuals playing at illegal gambling operators to get their money lost on wagers back.
Virtual Gaming Worlds has managed to push the case to Federal Court. The laws under which the company is being sued date back to the 19th century. VGW has pointed out that these laws concern real-money gambling operators, as the brand’s platforms are legal and operate under sweepstakes laws.
Due to the increasing scrutiny VGW faces from the media, regulatory bodies, and even law enforcement, it is currently defending 11 federal cases. Of course, many other sweepstakes casinos have been sued under the same premises regarding the return of losses from wagers.
What are Sweepstakes Casinos?
Both social and sweepstakes casinos are very similar in how they provide their services. Both are platforms that are entirely free to play. They use virtual currency, such as gold coins, which players use to play games with. These games are very similar to their real-money counterparts.
These coins are given out as a welcome bonus on a daily basis when you first sign up and as rewards for various activities or achievements on the platform. It is also worth mentioning that gold coins have no real money value and cannot be exchanged for cash. Of course, players can exchange their real money for gold coin packs if they don’t wish to wait.
Here, the similarities end. Sweepstakes casinos offer a variety of rewards in a sweepstakes fashion. The more you play, the more sweep coins or tickets you get, and your chances of winning the sweepstakes get higher. These prizes can be in cash or vouchers for popular retailers.
The Gray Between Black and White
Due to the nature of sweepstakes casinos, many platforms adopt that form of operation, which allows them to comply with other regulations. This, of course, gives grounds for more malicious or barely legal brands to operate in a gray area.
As we mentioned earlier, many sweepstakes casino brands have been scrutinized over the years, mainly because they find loopholes in legislation. Based on reports, VGW operates its platforms almost the same way as a real-money gambling site but as a sweepstakes casino. According to financial audit statements, Virtual Gaming Worlds spent over $60 million on advertising in the US alone.