Owner of Sweepstakes Casinos Chumba Casino, Luckyland Faces Lawsuit in Georgia

Article by : Erik Gibbs Jun 7, 2024

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A Georgia woman named Destiny Kennedy has initiated a class action lawsuit against VGW, a prominent sweepstakes operator, alleging that VGW offers illegal online gambling products to residents in Georgia.

The lawsuit, initially filed in the state Superior Court, has since been transferred to the federal level and is currently being heard in the Georgia Northern District Court.

Kennedy’s lawsuit contends that VGW’s sweepstakes casino functions as an illegal gambling operation. She claims that VGW’s dual-currency sweepstakes model is deceptive, as it presents itself as a legitimate sweepstakes while operating in a manner akin to an illegal casino.

This model involves a free-to-play currency that players earn through loyalty, but the main attraction is the purchase and accumulation of Sweeps Coins, which can be redeemed for real money.

Kennedy’s complaint includes allegations that VGW frequently and arbitrarily rejects written requests for Gold Coins, which should be available to players under the sweepstakes model.

VGW is identified as the largest sweepstakes casino company in the United States, operating several brands such as Luckyland Casino, Chumba Casino and Global Poker.

Despite the ostensibly free aspect of its offerings, the lawsuit emphasizes that players are primarily incentivized to spend real money on Sweeps Coins, which they can convert back into cash.

An important aspect of Kennedy’s case is her decision to opt out of VGW’s arbitration agreement when she set up her online account, a detail she included in her complaint.

The emails documenting her opt-out are dated August 2023. This move is significant in the context of a similar class action lawsuit against Fliff in 2023, where an arbitration clause prevented the case from proceeding in court.

The legal framework surrounding this case includes a law passed by the Georgia legislature in 2012, which prohibits “internet cafes” from offering casino-style gambling games within the state.

This law explicitly bans the playing of games of chance on computers within Georgia. However, it specifies that the prohibition applies to places of business rather than personal homes and devices.

Destiny Kennedy filed her lawsuit on May 17, and as of now, VGW has not yet filed its response to the complaint.