By
Jane Shaw
Senior Editor Updated: 12/27/2024
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.
A judge’s scale, gavel, and a book on a table
Recently, VGW Holdings won a legal battle when the Northern District Court of Georgia dismissed a class action lawsuit from Fair Gaming Advocates. This update comes amid very turbulent times for sweepstakes casinos in the US. Despite the win, VGW Holdings is not yet in the clear, as it continues to face significant challenges across several states.
Fair Gaming Advocates initiated the class action lawsuit against VGW Holdings in Georgia. The organization is fighting against the widespread sweepstakes casinos in the US. The lawsuit alleged that the VGW’s platforms (Chumba Casino, Global Poker, and LuckyLand Slots) have illegally targeted Georgian customers.
However, Judge Thomas Thrash ruled that the court lacked jurisdiction over VGW Holdings. According to him, VGW’s platforms were passive and accessible and didn’t actively target players from Georgia. This is a temporary relief for the company, considering the series of legal challenges it faces nationwide. It’s also a glimpse of hope for the outcome of any upcoming lawsuits.
“While the Defendants casino gaming websites were certainly accessible by Georgia users and the Defendants accepted payments from Georgia users in order to play the games, the Court finds this limited interaction, without more, insufficient to satisfy the transacting business prong in O.C.G.A § 9-10-91(1),” - the ruling of Judge Trash read.
Despite the favorable outcome in Georgia, VGW is involved in multiple other lawsuits nationwide. In Connecticut, for example, a plaintiff has accused VGW of operating illegal online gambling platforms and imposing unfair redemption restrictions. Additionally, in New York, a class action lawsuit has been filed against VGW Holdings alongside tech giants Apple and Google.
The lawsuit accuses these companies of knowingly assisting illegal gambling operations and profiting from them, invoking the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. This adds significant pressure on VGW and its partners as they defend against these serious allegations. And we’re yet to see what’ll come out of that.
The heightened scrutiny on sweepstakes gambling sites across the US has legislators actively debating new frameworks for iGaming without these types of platforms. That said, other companies and websites are also facing legal challenges. This includes popular sweepstakes online casinos such as High 5 Casino, WOW Vegas, and CrownCoins Casino, to name a few.
The outcome in Georgia is just one part of a larger narrative concerning the legality and regulation of sweepstakes gaming in the US. The situation is rather complicated, and it’ll be a while before it’s settled. We can’t possibly know what’ll happen, and if sweepstakes online casinos are completely banned in the country,
As of the writing of this article, they are widely spread, with only a handful of restricted states such as Washington, Michigan, and Idaho. The outcomes of the legal battles will likely have lasting implications for how sweepstakes platforms are regulated in the US. This could potentially influence future business models in the industry.
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