US Court Dismisses Montana Lawsuit Against VGW Holdings
A federal judge in Montana has dismissed a lawsuit against VGW Holdings, bringing an abrupt end to a case that had accused the Australian gaming group of unlawful business practices. The decision, issued on 19 August by the US District Court for the District of Montana, formally terminated the matter without prejudice, granting the defendants’ request to close the proceedings.
Case Filed Earlier This Year
The action was initiated earlier in 2025 by Montana resident Michael Lighter, who alleged that VGW’s sweepstakes-based gaming model violated both state and federal laws. The complaint focused on the company’s use of virtual currencies and promotional sweepstakes within its online social casino platforms, arguing that these mechanisms effectively amounted to illegal gambling.
VGW, which operates several leading social casino brands, has consistently maintained that its business complies with existing regulations. Montana is among the US states where the company no longer provides services.
Court records show that the defendants’ request for dismissal was filed on 16 August, just four days after both parties had jointly sought more time to prepare responses – the second such extension request in recent weeks. The court granted the motion swiftly, leaving the case closed without prejudice. No explanation for the sudden change in strategy was provided in the filing.
Wider Implications for Social Casino Operators
The dismissal represents a short-term procedural win for VGW, relieving the company of immediate legal pressure. However, the broader debate over the legality of sweepstakes-based models in the United States remains unresolved.
Courts have often struggled to reconcile traditional gambling laws with newer digital models, which occupy a gray area between skill-based entertainment and chance-based wagering. As a result, many lawsuits of this type have either stalled or been dismissed before trial.
This outcome highlights the difficulties faced by plaintiffs challenging sweepstakes-style operators. Without a clear regulatory framework at the federal level, enforcement continues to vary significantly from state to state.
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