VGW faces Arkansas lawsuit over alleged illegal gambling

Australian sweepstakes operator VGW is facing a legal action in Arkansas. The operator is accused of violating the state’s Deceptive Trade Practices Act by allegedly misrepresenting the legality of its dual-currency gaming model. The lawsuit targets VGW’s sweepstakes casino operations that include Chumba Casino, LuckyLand Casino and Global Poker. The casino brands continue to operate in Arkansas despite the real-money online casino gaming being prohibited in the state. Attorney General Tim Griffin, who accused the case, said: Arkansas’s gambling laws are clear. If you’re providing a means for Arkansans to gamble money within our state, you are subject to the rules and regulations that govern legal gambling. Sports betting is legal in Arkansas, but real-money online casino is prohibited. VGW is among several sweepstakes operators active in the state. It has dual-currency model that allows o purchase one type of virtual currency and redeem another for prizes. The legality of this model has increasingly come under scrutiny across the US. Alongside the lawsuit against VGW, Griffin has also filed a separate legal action against prediction market operator Kalshi. Attorney General Griffin added: VGW’s claim that there is a distinction between the virtual currency one buys and the virtual currency one redeems is weak at best, and courts have rejected this too-cute-by-half logic time and time again Griffin’s lawsuit seeks several forms of relief, including restitution, penalties, taxes and injunctive measures. VGW still doesn’t know what will happen with its dual-currency model of doing business as more states in the USA consider introducing bans and taking actions against sweepstakes operators.