VGW Back in Dispute in Arizona

The Arizona activities of Virtual Gaming Worlds (VGW) have returned to the spotlight. The company operates the Chumba Casino, Global Poker and Luckyland Slots platforms. The Arizona Department of Gaming issued VGW a cease and desist order in November 2024. Despite this, the company is reported to have continued operating in the state.

The department argues that the company's model violates state law. Users can reportedly buy virtual currency, play games and convert their winnings into cash or other prizes. In the department's view, the free play option does not change the nature of this activity. VGW argues that sweepstakes platforms fall outside the scope of state gambling laws.

Authorities continue to say the company must stop its activities. However, the dispute has not yet resulted in a concrete penalty. Department spokesperson Jessica Roza said the agency still considers VGW's activities illegal and is evaluating possible enforcement actions. The fact that the company's headquarters is overseas also makes it harder to bring a case.

VGW's political donations in Arizona also draw attention. The company and its affiliated businesses are reported to have spent roughly $350,000 on lobbying aimed at both Democratic and Republican officials. There is no evidence that these contributions have affected the course of the case. Even so, the lack of a visible step against a major sweepstakes operator has drawn criticism.

Company spokesperson Michael Bennet previously said VGW believes it complies with the relevant laws and regulations. Bennet said the company is open to communication with states and is ready to discuss possible regulatory frameworks for its dual currency products. The company has not commented on its Arizona activities despite the regulator's warnings.

The report is part of growing opposition across the United States to dual currency sweepstakes casinos. Some states have banned such casinos, while others are taking legal action against the industry. Because VGW is one of the largest operators in the country, it has become a priority target for regulators and prosecutors.