VGW Intensifies Lobbying Efforts in Alabama

VGW, the company behind Chumba Casino, LuckyLand Casino, and Global Poker, has increased its political spending in Alabama, donating $100,000 to US Sen. Tommy Tuberville’s gubernatorial campaign. The state marks another jurisdiction where sweepstakes regulations could change. However, Tuberville has not publicly commented on VGW’s business model. New Alabama Gambling Legislation May Be Coming Soon VGW’s direct donations to Tuberville’s campaign this year are now $130,000, according to a September disclosure. The company donated $30,000 to the Republican candidate earlier this year. This contribution comes as VGW faces growing scrutiny over its sweepstakes casino model. The gambling company has increased its political spending in states where dual-currency platforms are treated as a type of gambling. Lobbying expenses in Alabama extend beyond the governor’s race. Campaign finance disclosures reveal that the company has also poured money into political action committees and state legislative candidates. Notably, VGW seems to be supporting candidates with a good chance of winning, likely aiming to curry favor with lawmakers. The company’s rising involvement in Alabama politics comes ahead of a possible debate over gambling policy. Tuberville has not supported a specific gambling expansion plan. He previously suggested that the legislature should make decisions on gambling, including a potential referendum. However, this lobbying activity is curious, considering that no gambling bill is currently under consideration. Sweepstakes Face Rising Pressure Across the USA VGW’s contribution comes at a difficult time for the company. In August, Florida Attorney General James Uthmeier filed a lawsuit against VGW and several related entities, alleging that they were offering illegal online gambling. The legal challenge claims that VGW’s products were a type of gambling masked as sweepstakes or social casinos. The lawsuit remains ongoing. This case represents the broader regulatory problem facing VGW. Different US states have taken varying stances on where the company’s offerings fall within existing gambling law. Several jurisdictions have even completely prohibited sweepstakes casinos. In Alabama, lawmakers have yet to implement a comprehensive gambling framework, leaving the future of sweepstakes uncertain. For VGW, Alabama is a state where sweepstakes regulations could change, strongly incentivizing the company to lobby for more favorable legislation. However, the Tuberville payment should not, by itself, be regarded as a sign that a specific political candidate will support the company. It does, however, draw attention to where VGW thinks it has the best chances of favorable legislation.