VGW Starts Charging Sales Tax as Legal Pressure Grows in Sweepstakes Market

Virtual Gaming Worlds (VGW), which runs sweepstakes casino sites Chumba Casino, Global Poker, and Luckyland Slots, has started to add sales taxes to what users buy on its platforms. This change happens as the company deals with more regulatory oversight in the United States, where lawmakers are paying closer attention to the sweepstakes gaming industry.

Users in Multiple States Face New Charges as VGW Revises Terms of Service

VGW has changed its terms of service to include the new tax policy, which has an impact on purchases of its Gold Coins, the virtual money used in its games. The new policy states that tax rates will differ depending on where you live, and users in several states, including Kentucky, Illinois, Arkansas, Pennsylvania, and Hawaii, have already gotten a heads-up.

A VGW spokesperson said they know some players might find this change surprising. However, the company pointed out that changing laws made this update necessary to stay on the right side of the rules. VGW also promised to give users enough information and help to make the switch easier.

The company’s announcement fits with its wider efforts to handle legal issues in California, where a law targeting sweepstakes casinos is moving forward. Assembly Bill 831 (AB 831) suggests tough measures that could ban such platforms in the state. The bill just passed a key committee and will be reviewed further soon.

VGW Limits Legal Claims in California While Urging Lawmakers to Rethink Ban

VGW’s response to the bill was that it is ready to pay taxes in California, hinting that this could bring in a lot of money for the state. The company pointed to estimates showing up to $149 million in yearly tax revenue if the right rules were put in place. VGW has asked lawmakers to think again about the bill, instead suggesting a system with rules that balance protecting consumers with opportunities to make money.

In addition, VGW has changed its terms for people living in California, adding a rule that limits their legal rights under state law. The change means users must give up claims that could come from future arguments with the company, a move that some legal experts say could protect VGW from group lawsuits.

People who watch the industry say these changes show the growing tension between old-school gambling businesses and the rising sweepstakes sector. Tribal gaming groups have been loud in their opposition, pushing for stronger enforcement and even trying to get back profits from these platforms.As VGW gets ready for more legal fights, its latest steps seem to aim to keep its place in the US while trying to adjust to changing rules. It is not clear if these moves will be enough to stop stricter laws from coming.