VGW in the Crosshairs as Arkansas Files Lawsuit

Arkansas has set its sights on sweepstakes giant VGW, arguing that its business violates the state’s Deceptive Practices Act. This is the latest legal challenge faced by the sweepstakes industry, which has been a point of contention for years. Arkansas Takes Action Against VGW Sweepstakes operators offer online gaming products and leverage a dual-currency system that allows for both free and paid play. Proponents of the sector argue that the fact that players can play without staking money sets sweeps apart from traditional gambling. As a result, sweepstakes have long operated in a gray area, avoiding regulation. Arkansas Attorney General Tim Griffin has now set his sights on VGW, one of the top names in the sweepstakes sector. He accused the company of deceptive marketing, firmly rejecting its claims that its products are not gambling. 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. AG Tim Griffin Griffin said that any sensible person would consider sweepstakes gambling despite their dual currency system. He said that the claim that there is a distinction between the currency that players can earn and the one that they can buy is “weak at best.” Griffin’s current lawsuit targets VGW’s continued marketing, which he deemed to be aggressive and misleading. He added that the company has continued to employ a deceptive marketing model, despite being well aware that its legal status is “not nearly as clear” as its ads suggest. For reference, one of VGW’s brands advertises itself as “100% safe and 100% legal.” For reference, VGW’s Chumba Casino, LuckyLand Casino, and Global poker brands are all available in Arkansas. Griffin’s lawsuit seeks relief that includes restitution, penalties, taxes, and injunctive relief. A similar case in New York saw New York AG Letitia James triumph, forcing VGW to pay $8 million. This set a precedent that could potentially be used against VGW in Arkansas. AG Griffin Is an Outspoken Opponent of Unlicensed Gaming Products AG Griffin continues to uphold his strict stance on illegal gambling and has remained a firm opponent of “gambling-like” products, such as sweepstakes and prediction markets. He previously initiated a lawsuit against prediction market giant Kalshi, arguing that its products violate the local laws. Speaking of which, the advent of prediction markets has shifted some attention away from the sweeps sector, making lawsuits against sweepstakes operators somewhat rarer. Despite that, eight states have already explicitly prohibited sweepstakes. These include the following: California Connecticut Indiana Maine Montana Nevada New Jersey New York Because of the continued pushback, VGW has been forced to scale down its US-facing business.