VGW Exits Connecticut Amid Pushback Against Sweepstakes

VGW Holdings, a leading operator of sweepstakes games, has ceased its operation in Connecticut following a cease and desist order from the Connecticut Department of Consumer Protection. This comes amid an increased pushback against the controversial sweepstakes industry.

VGW Holdings Exited Connecticut

The Connecticut Department of Consumer Protection sent a letter to VGW in February this year, labeling its products as unlicensed gambling. The company was therefore ordered to stop offering its products to players in the Constitution State and exit the local gaming market.

The Connecticut Department of Consumer Protection warned VGW that it risks additional regulatory action, should it fail to comply with the order. The company was warned that this action could include both civil and criminal penalties.

In addition to ordering VGW to cease its business operation in Connecticut, the local authority slammed the promotion of its products as an unfair trade practice.

Gaming lawyer Daniel Wallach confirmed VGW’s exit from Connecticut. In a post on X, he shared the latest update of the Chumba Casino and Luckyland Slots brands’ terms and conditions. As seen in the update, the brands no longer accept players from markets such as Connecticut, Idaho, Michigan, Washington and Quebec.

Rather than fight back and challenge the cease and desist order in court, VGW pulled out of Connecticut and recently amended its T&C’s for Chumba Casino and Luckyland Slots to list CT as an excluded state.

Daniel Wallach

Wallach reminded readers that state agencies are not bound by arbitration clauses.

Rather than fight back and challenge the cease and desist order in court, VGW pulled out of Connecticut and recently amended its T&C’s for Chumba Casino and Luckyland Slots to list CT as an excluded state. (A reminder that state agencies are not bound by arbitration clauses). pic.twitter.com/v6hOlzX39f

— Daniel Wallach (@WALLACHLEGAL) October 1, 2024

Regulators Are Pushing Back against the Sweepstakes Market

The regulatory action against VGW Holdings comes amid increased scrutiny against the sweepstakes sector. Historically, sweepstakes operators have claimed that their products do not constitute gambling, which has allowed them to avoid a wealth of regulatory trouble.

However, many have pointed out that there are inherent similarities between sweepstakes and betting, sparking increased calls for the sector’s regulation. Regulatory bodies and industry leaders have demanded governments take action and inhibit the growth of the sweepstakes market, which has been accused of cannibalizing the legal industry’s revenues.

Michigan issued a cease and desist order against VGW in January, causing the operator to cease its business there as well. However, the operator’s products are still available in Delaware despite a similar order being issued there too.