Major sweepstakes operator, Virtual Gaming Worlds (VGW) has left Delaware, finally complying with a cease and desist order sent by the state gaming regulator over 2 years ago.
This means that, as of April 2nd, Chumba Casino, LuckyLand Slots, and Global Poker are no longer available to residents of The First State.
The Delaware Division of Gaming Enforcement celebrated the victory in a press release titled “Delaware shuts down illegal online slots”. The regulator stated:
“These types of real-money games offered to Delaware residents by an unlicensed entity violate the Delaware Constitution, the Delaware Penal Code and the Delaware Gaming Competitiveness Act of 2012.”
That said, it seems no other operator aside from VGW has been targeted, leaving many still offering sweepstakes casino games for residents of Delaware.
VGW is Often in the Firing Line
As the original innovator of the sweepstakes dual-currency format, Australia-based VGW bears the brunt of unwanted attention from gaming regulators. However, despite being drawn into multiple private cases across the US, the company often assumes more risk than others, staying in a state until its position becomes untenable.
In the case of Delaware, it’s interesting to note that the original cease and desist letter was sent on February 23rd, 2023, over two years ago. That said, VGW COO, Tim Moore-Barton is on record as saying he only became aware of the letter when it was later brought up in a lawsuit against the company.
Will VGW Still Choose to Litigate in Delaware?
Ironically, many businesses choose Delaware as the ideal litigation venue, including VGW. This is stated in the company’s terms of service, and we recently saw it successfully move a lawsuit there from Florida.
The Natural State is often seen as the premier venue in the US, thanks to extensive corporate case law that generally favors business. VGW’s departure now raises questions about whether it will continue to choose the state’s Federal District Court for litigation, or whether it may need to shift its legal strategy.
The company will also continue to fight in multiple private lawsuits across the US, including a recently-filed case in Connecticut. Such cases usually accuse VGW of offering illegal gambling via the sweepstakes format, but, despite some settlements along the way, no plaintiff has managed to successfully prove their case yet.
For now, VGW sister casinos, Chumba, LuckyLand Slots, and Global Poker add one more state to their list of restrictions, although they’re still willing to operate in a much larger market than many competitors, like High 5 and McLuck.
Author: Alex Windsor
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