Overview of the Lawsuit
VGW Holdings Limited, a prominent online social casino and poker game developer, is currently embroiled in a legal battle. The company is accused of unlawfully operating and marketing its internet gambling websites in Georgia. The lawsuit, filed by Destiny Kennedy, alleges that VGW operates illegal casino games on its websites, including Chumba, Luckyland, and Global Poker.
Plaintiff’s Claims
Destiny Kennedy claims to have lost approximately $1,150 playing casino games on these websites. She seeks to represent a class of Georgia consumers who have suffered monetary losses on Chumba Casino, Global Poker, or Lucky Land Slots during the applicable limitations period. Kennedy’s lawsuit argues that VGW misrepresents its gambling websites as “just for fun” gameplay when, in reality, they are internet gambling casinos where real money is wagered and lost.
Allegations Against VGW
The lawsuit alleges that VGW knowingly operates an illegal gambling enterprise while advertising its operations as legitimate and legal. Kennedy claims that VGW’s actions violate Georgia Code § 13-8-3, which voids gambling contracts and allows for the recovery of money lost in gambling. She demands a jury trial and requests monetary relief for herself and all class members.
Legal Basis
Kennedy’s lawsuit is grounded in Georgia Code § 13-8-3, which states that gambling contracts are void and that money paid or property delivered upon a gambling consideration may be recovered from the winner by the loser within six months after the loss. After this period, any person can institute an action within four years for joint use with themselves and the educational fund of the county. This legal basis forms the crux of Kennedy’s argument against VGW.
Related Class Action Lawsuits
This lawsuit is not an isolated incident. Earlier this year, a separate class action was filed against Roblox Corp., Satozuki Ltd., Studs Entertainment, and RBLX Wild Entertainment. This lawsuit claims that these companies allowed minors to gamble online using in-game Robux currency. The trend of targeting online gaming companies for alleged illegal gambling operations is gaining momentum, highlighting the growing scrutiny of the industry.
VGW’s Financial Performance
Despite the legal challenges, VGW Holdings has reported significant financial growth. The company, led by billionaire Laurence Escalante, is projected to reach $5 billion in annual revenue. In the first half of the year, VGW Holdings experienced a 29% jump in revenue, reaching $2.8 billion. Net profit for the same period rose by 23%, amounting to $207 million. This financial performance underscores the company’s prominence in the online gaming industry.
Current Legal Status in Georgia
In Georgia, sports betting, poker games, and other types of online betting remain illegal. Two sports betting bills failed in the legislative session ending in 2024, but there is a possibility that legalized gambling might be on the horizon by 2025. However, daily fantasy sports sites are technically permitted, as the state has neither legalized nor outlawed fantasy sports contests. This legal landscape adds complexity to the ongoing lawsuit against VGW.
Sweepstakes Casinos Legal Gray Area
Sweepstakes casinos, like those operated by VGW, exist in a legal gray area. While they operate legally in most U.S. states, specific legislation in states like Washington and Idaho classifies them as a form of gambling. In other states, sweepstakes casinos and online poker sites are not classified as gambling since no real money wagers take place. However, customers can purchase “Sweeps Coins,” which can be gambled with and exchanged for prizes or cash, creating a legal gray area where operators assume no gambling license is required.
Other Sweepstakes Casino Lawsuits
VGW is not the only company facing legal challenges. In Washington, a $415 million settlement was approved against Double Down Interactive LLC and International Game Technology PLC for running social casino games as “illegal gambling.” In Alabama, a class-action lawsuit was filed against Playtika alleging its games constitute “illegal gambling.” The case is still pending with no scheduled hearing date. In Kentucky, a class-action lawsuit was filed against Scientific Games Corp alleging their games should be classified as “illegal gambling.” The case was dismissed in October 2022. Another class-action lawsuit against VGW LuckyLand settled for over $11 million at the end of 2022. In California, a $5 million class-action lawsuit was filed against Fliff in June 2023, alleging its sweepstakes activities violated local gambling laws.
Call to Action
The article invites readers who have lost money on Chumba Casino, Global Poker, or Lucky Land Slots to share their experiences in the comments section. This call to action aims to gather more information and potentially identify additional class members who may have been affected by VGW’s alleged illegal gambling operations.
Representation
The plaintiff, Destiny Kennedy, is represented by Barry Williams. The case is titled Kennedy et al. v. VGW Holdings Limited et al., Case No. 1:24-cv-02184, in the U.S. District Court for the Northern District of Georgia. This legal representation underscores the seriousness of the allegations and the potential impact on VGW Holdings.
Conclusion
The class action lawsuit against VGW Holdings highlights the ongoing legal challenges faced by online gaming companies. As the industry continues to grow, so does the scrutiny from regulators and consumers alike. The outcome of this lawsuit could have significant implications for VGW and other companies operating in the online gaming space. Readers are encouraged to stay informed and share their experiences to contribute to the ongoing discussion surrounding the legality of online gambling operations.
