VGW, Apple, and Google Face Illegal Gambling Lawsuit in NY

A group of people has sued VGW Apple, and Google in New York’s Southern District Court. They accuse these companies of running or backing illegal gambling operations. 

Class Action Claims VGW’s Apps Turn Devices Into Gambling Machines

The lawsuit, filed on December 3, claims that VGW’s platforms — Chumba Casino, LuckyLand Slots, and Global Poker — are online casinos not allowed by New York law. The people suing say these platforms offer games of chance that fit the state’s definition of gambling. They also argue that the devices used to access these platforms count as gambling devices under the law.

The plaintiffs also claim Apple and Google help these activities by offering VGW’s apps in their stores and taking big cuts of the money made, as reported by Legal Sports Report. The lawsuit says that VGW’s two-currency system, which lets users buy fake money to play games turns these platforms from harmless social gaming sites into illegal gambling operations. The legal action also brings up the federal Racketeer Influenced and Corrupt Organizations (RICO) Act saying the companies acted as part of an unlawful group.

The lawsuit sheds light on the huge money VGW’s operations bring in pointing to financial reports from its Australian accounts that show big earnings in 2022 and 2023. It says the company has dodged regulatory checks by fooling authorities and using arbitration clauses that force people to settle disputes in far-off places like Malta. Those who oppose VGW’s methods say this approach protects the company from being held responsible while letting it run gambling platforms without rules.

This lawsuit is not a one-off thing. People have filed similar cases against VGW and other sweepstakes companies in many states. For example, a class action lawsuit against sweepstakes operators was recently filed in New Jersey. 

Regulators and Advocacy Groups Challenge Sweepstakes Platforms Over Legality

Some regulators are taking a tough stand against the industry. For example, Delaware and Michigan have told these sweepstakes businesses to stop operating. They want to protect their regulated gaming markets. 

The American Gaming Association has asked for a closer look at these platforms. Groups like the California Nations Indian Gaming Association are worried, too. They think regulated gaming establishments might lose money because of these sweepstakes operators.

Despite these hurdles, VGW and other companies in the field keep insisting they are following the law. The Social and Promotional Gaming Association (SPGA), which started this year, speaks for the whole industry. This group says its members work within state and federal rules and sees lawsuits like the one in New York as a normal bump for new ways to play games.

Even though the industry faces more legal issues, no court has said these sweepstakes companies are wrong yet. Many lawsuits are stuck in legal red tape so we do not know what will happen to these platforms as rule makers, courts, and industry supporters keep arguing about whether they are legal or not.