VGW Appeals Decision to Remand Sweepstakes Lawsuits in Tennessee
VGW is appealing a recent Tennessee court ruling that sent several sweepstakes-related lawsuits back to state court. The lawsuits, filed by players, are seeking to recover losses from unlicensed sweepstakes operators like VGW, claiming the activities are illegal gambling.
Sweepstakes Legalities
Gambling attorney Daniel Wallach said the lawsuits are not class actions but qui tam lawsuits.
Unlike class actions which can be removed to federal court under the Class Action Fairness Act (CAFA), qui tam lawsuits – where individuals sue on behalf of the government – are protected from removal to federal court and are not subject to mandatory arbitration dismissals.
This is a problem for VGW as the lawsuits are stuck in state court.
Plaintiffs Want to Get Their Money Back
At the heart of the lawsuits is the claim that VGW’s sweepstakes are illegal gambling and plaintiffs want to get their money back. VGW’s appeal is to protect its business model and dispute the allegations in a system that doesn’t favor arbitration in these types of cases.
This is another example of the heat on unlicensed sweepstakes operators in the US. VGW’s appeal will set a precedent for other lawsuits across the country for operators in the sweepstakes and online gaming gray areas.
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