VGW Ordered to Cease Operations in Delaware
The Delaware Lottery has recently ordered Virtual Gaming Worlds (VGW) to halt its operations within the state, prohibiting the company from offering its sweepstake products to Delaware residents.
Regulatory Challenges Across Multiple States
Delaware is not the only state where VGW has encountered regulatory barriers. In December 2023, the Michigan Gaming Control Board also ordered the company to cease its sweepstakes operations.
Similarly, VGW has been forced to suspend services in Idaho and Washington, reflecting a broader trend of regulatory resistance to online sweepstake products.
Class Action Lawsuits Add to VGW’s Legal Troubles
VGW is also entangled in legal battles, most notably in Georgia, where a class action lawsuit has been filed by a resident, Destiny Kennedy, accusing the company of offering illegal gambling products.
Kennedy claims that VGW’s dual-currency model disguises an illegal casino, and she is seeking to recover losses incurred while playing on VGW’s platforms.
This case, currently in the Georgia Northern District Court, is one of several legal challenges the company faces, with a similar class action lawsuit pending in Florida.
Despite these challenges, VGW continues to assert its dominance in the online sweepstakes market. Tim Moore-Barton, COO of VGW, acknowledged the regulatory difficulties but highlighted the company’s pioneering role in the sector. “We still have a leading market position,” Moore-Barton told the Australian Financial Review, emphasizing VGW’s strong financial position.
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