VGW facing lawsuit in Connecticut after leaving state

Olivia Richman

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Publish Date: 11/27/2024

Virtual Gaming Worlds (VGW) continues to find itself in legal trouble, this time facing a lawsuit in Connecticut.

VGW is the parent company of multiple online casinos, including Chumba Casino and LuckyLand Slots. While VGW claims that its casinos are social casinos, they may actually be operating as sweepstakes casinos, allowing players to pay real money in exchange for in-game currency.

While sweepstakes casinos are often scrutinized for finding ways around gambling laws, they are usually considered perfectly legal in most states. However, VGW has been accused of illegal gambling due to the misrepresentation and various other questionable practices — and it's not the first time. So far, 12 states have now pursued a class action lawsuit against the Australian company, with Connecticut now being added to that growing list.

Why is VGW facing a class action lawsuit in Connecticut?

Stephanie Cox has taken VGW to the Hartford Superior Court in Connecticut, accusing the company of being an illegal gambling platform that encourages players to keep gambling due to its redemption restrictions. Cox explained that she ended up spending $300 due to how the redemption restrictions work on VGW's sites, including only allowing one daily redemption request and reportedly taking weeks to follow through on those requests after they are made. The lawsuit explained that this extended waiting period often causes players to cancel their redemption request so that they can use the Sweepstakes Coins to keep playing instead, painting it as an insidious tactic on part of VGW meant to trick players into gambling, and potentially losing, their money rather than withdrawing it.

On top of that, VGW has been accused of continuing to operate in Connecticut through October despite receiving a cease-and-desist letter from the Connecticut Department of Public Safety in February. Connecticut isn't the first state to send a cease-and-desist to VGW. Delaware's Division of Gaming Enforcement issued a case-and-desist in 2023, but the company has so far refused to leave the state. VGW has left Connecticut.

VGW lawsuit

VGW faces lawsuits in multiple US states

VGW's sweepstakes model has caused legal battles across the United States to ensue, with lawsuits being filed in a number of US states. Currently, the company is being sued by Mississippi, Massachusetts, Georgia, and Florida over false advertising and illegal gambling. In 2023, Kentucky residents received a $11.75 million settlement payout from VGW for the same reason.

It's currently expected that VGW will attempt to move the standing cases against it to federal court in the hopes of controlling any resulting settlements as best it can.