VGW Secures Third Georgia Lawsuit Dismissal on Jurisdiction Grounds

A “Passive Website,” Not a Local Business

In his ruling to dismiss the case brought by plaintiff Destiny Kennedy, U.S. District Judge Thomas Thrash determined that VGW’s online presence did not constitute “transacting business” in Georgia.

He noted that VGW’s websites, like Chumba Casino and Luckyland Slots, are “passive websites” accessible by Georgia residents, but the company does not specifically target them with marketing or other business activities.

“The Plaintiff does not identify any actions taken by VGW Group that were expressly aimed at Georgia,” Judge Thrash wrote.

He argued that forcing VGW into a Georgia court based on this limited interaction would “offend traditional notions of fairness and substantial justice.” The judge dismissed the case “without leave to amend,” effectively ending this line of legal attack.

Arbitration Opt-Out Doesn’t Invalidate Forum Selection

The ruling also dismantled a key argument related to VGW’s terms and conditions. The plaintiff had argued that by opting out of the mandatory arbitration clause, she should be free to sue VGW in a Georgia court.

Judge Thrash rejected this logic, siding with VGW’s argument that the two clauses are separate. He explained that opting out of arbitration simply means a dispute can go to court, but it does not invalidate the “forum selection clause,” which requires all legal action to be filed in federal court in either Delaware or Malta.

“Nothing in the arbitration opt-out provision states or implies that a user may opt out of the mandatory forum selection clauses. Nor would that make any sense,” he wrote.

A Pattern of Victory for VGW

This latest dismissal marks the third consecutive loss for attorney Barry Williams in his attempts to bring class-action lawsuits against VGW in Georgia. It follows two similar rulings from Judge Thrash that sided with the social gaming company.

In 2023, the judge dismissed a case from “John Doe,” ruling that the plaintiff was bound by the arbitration agreement. Earlier in 2024, a suit from Fair Gaming Advocates Georgia Inc. was also dismissed for lack of jurisdiction, with the judge’s reasoning from that case being heavily cited in the new Kennedy dismissal.

The consistent rulings from Judge Thrash provide VGW with a powerful legal shield against similar lawsuits in states where it has no physical presence or targeted operations.

The decisions establish a strong precedent that simply having a website accessible to residents of a state is not enough to be dragged into that state’s court system.