VGW Exits Connecticut Following Cease and Desist Notice
VGW has made the decision to withdraw from the state of Connecticut after receiving a cease and desist order from the state’s consumer protection authority. The company opted not to contest the allegations, leading to its departure from the market.
Changes in Terms and Conditions
The exit was confirmed following observations made by Daniel Wallach, Founder of Wallach Legal, regarding alterations in the terms and conditions of VGW’s operations at Chumba Casino and Luckyland slots.
Connecticut was added to a list of restricted states, which already included Idaho, Michigan, Washington, and Montana.
Allegations of Unlicensed Activity
Connecticut authorities accused VGW of operating without the necessary licenses. The cease and desist letter, issued earlier this year, clearly stated:
“VGW is hereby ordered to immediately cease and desist offering its games and services to Connecticut customers. Failure to comply may result in additional action including, but not limited to, civil penalties under CUTPA and/or criminal penalties under Conn. Gen. Stat. 53-278b and 53-278d.”
Regulatory Scrutiny of Sweepstakes Casinos
VGW’s exit from Connecticut has occurred amidst growing pressure from the American Gaming Association (AGA) for tighter regulation of the sweepstakes casino industry.
The AGA highlighted that sweepstake casinos often operate similarly to regular online casinos, yet enjoy a less stringent regulatory framework.
Concerns Over Lack of Oversight
According to the AGA, sweepstakes casinos exploit a dual-currency system to avoid licensing requirements.
While these platforms “look and play like an online casino,” the absence of comprehensive oversight raises concerns about consumer safety and potential for illegal activities.
The AGA warned that “the opaque nature” of these operations poses risks to the integrity of the legal gaming market, particularly in terms of tax contributions and responsible gaming measures.
VGW’s Defense
In response to these concerns, Laurence Escalante, the owner of VGW, defended the company’s practices, emphasising the robustness of its financial crime prevention protocols.
Despite this defense, VGW’s departure from Connecticut marks another point of contention in the ongoing debate over the regulation of sweepstake casinos.
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