VGW, a prominent player in the sweepstakes casino industry, is facing a lawsuit in Kentucky from a group seeking triple damages for losses incurred on its platforms, Chumba and Luckyland. The lawsuit emphasizes a nearly 1:1 ratio between U.S. dollars and Sweeps Coins, suggesting that VGW has replicated the Internet sweepstakes cafe business model. This lawsuit marks the third such legal action within two weeks, following similar suits against DingDingDing in California and Blazesoft in Illinois, all of which highlight the same financial ratio. In its first legislative testimony in the U.S., VGW defended its operations before a Maryland Senate committee, asserting that it is highly regulated and likening its sweepstakes promotions to those of major brands like McDonald's and Microsoft, claiming that players do not pay for a chance to win. Concurrently, Florida lawmakers are considering bills to ban sweepstakes casinos, and discussions are ongoing regarding online casino legislation in Arkansas and a prohibition bill in New York.
Another barnburner of a news day to cover, including the below news in Arkansas, a sweepstakes hearing in Maryland (including a letter of support for a prohibition by the Maryland Lottery), and a new bill prohibiting sweepstakes in New York. Link in next tweet https://t.co/Ji0TX8eObL
As noted in today's newsletter, there could be some movement on online casino legislation in Arkansas - A state I've been monitoring as a dark horse candidate. A live stream of the committee is about to begin. Link 👇
In its US legislative debut, sweepstakes casino giant VGW told a Maryland Senate committee that it is “highly regulated,” offers sweepstakes promotions “like McDonald’s and Microsoft” and “players never pay for a chance to win those promotions.” (2:49:27) https://t.co/0I9xMwjuwF