VGW Faces Fresh Accusations in Arizona

Virtual Gaming Worlds (VGW), the company behind Chumba Casino, Global Poker, and Luckyland Slots, reportedly continues to operate in Arizona nearly two years after state regulators ordered it to stop. This case raises questions about the state’s enforcement of gambling laws and the company’s political spending, as it remains unclear whether authorities will take formal action. Arizona Regulators Have Ignored VGW’s Activities A recent Arizona Republic investigation revealed that the Arizona Department of Gaming issued a cease-and-desist order against VGW in November 2024. However, the Australian gambling company has continued its operations in the state. Regulators previously alleged that VGW’s platforms offered illegal gambling and warned that the company could face civil or criminal charges. However, no such action has followed. Regulators argued that VGW’s business model violated state law, as users could buy virtual currency, play games, and redeem winnings for cash or other prizes. According to the Department, giving users free-to-play options did not change the nature of the activity. VGW disputed that interpretation, arguing that sweepstakes platforms do not fall under state gambling laws. Despite these claims, regulators have insisted that VGW must cease its operations in Arizona. However, the dispute has not led to any concrete measures. Department of Gaming spokesperson Jessica Roza reportedly noted that the agency still considers VGW’s activities illegal and is assessing possible enforcement action. The company’s location overseas makes starting a case very challenging. Lobbying Efforts Have Ramped Up Significantly VGW’s recent political donations have drawn attention to its continued presence in Arizona. The company and its reported businesses reportedly spent roughly $350,000 lobbying Democrat and Republican officials. While these donations do not prove that political contributions influenced the case, the absence of visible measures against a major sweepstakes operator has drawn scrutiny. VGW spokesperson Michael Bennet previously claimed the company was confident that it complied with relevant laws and regulations. He added that VGW was willing to communicate with states and discuss potential regulatory frameworks surrounding its dual-currency offerings. However, the company has not commented on its continued operations in Arizona despite the regulator’s warnings. This case follows rising backlash against dual-currency sweepstakes across the USA. Several states have already banned sweepstakes casinos, while others are taking legal action against the sector. Meanwhile, VGW’s position as one of the country’s largest operators makes it a primary target for regulators and prosecutors looking to rein in the industry.