Legal Challenges for VGW in Georgia
Regarding the way its free-to-play and social casino businesses are run in the US, VGW is facing legal action. The case, which was filed in Georgia, contends that the companies’ current activities violate local gaming regulations and that social casinos and sweepstakes are not permitted in the Peach State.
Plaintiff’s Argument
A local called Destiny Kennedy is the primary plaintiff named in the city. She contends that the sweepstakes structure is an attempt to conceal the fact that VGW is operating an unlicensed gaming business. In many states where social and sweepstakes casinos are otherwise prohibited by law, social and sweepstakes casinos are the only permitted type of internet gaming, making them extremely popular around the country.
Sweepstakes Casinos Under Scrutiny
Many governments have adopted the popular argument that social and sweepstakes casinos are not “real money contests,” even in the face of local bans on online casinos. The idea has been unsuccessfully contested in a number of courts. Kennedy, though, is prepared to take a risk and try to disprove the claim. The complaint stated that “VGW proactively defrauds Georgia citizens because VGW advertises that its operations are legitimate and legal when, in reality, VGW knowingly and willfully operates what constitutes an illegal gambling enterprise.”
Personal Grievances and Legal Strategy
Kennedy’s Experience
Kennedy lost $1,150 when playing on the operator’s websites, thus she has personal grievances with them. Kennedy claims that the sole reason for the loss is that the “free-to-play” model promoted by social casino operators is flawed. She contends that since the operator’s true objective is for you to buy Sweeps Coins, which do require real money, it doesn’t actually mean that you get to play for free.
Legal Arguments
Kennedy’s lawsuit aims to establish that selling these coins for actual cash is VGW’s true business model. The complaint was initially filed with the State Superior Court in mid-May, but it has since been transferred to the Georgia Northern District Court. Kennedy’s claim will be especially challenging to support in court for the reasons outlined above. It will be up to the 42-page lawsuit to accomplish what is largely seen as an impractical legal goal.
The Basis of the Case
Use of Sweeps Coins
Kennedy’s legal team believes the case might be built around the usage of Sweeps Coins, which can be redeemed for cash and sent straight to a customer’s digital wallet or bank account. Approximately one Sweeps Coin is equal to one dollar. VGW is being sued for this “camouflaged” illicit gambling, claiming that it was exactly what Georgian law forbade.
Previous Legal Challenges
Historical Context
VGW has been under scrutiny previously. A man by the name of John Doe previously sued the business in Georgia. After experiencing comparable pressure from local courts, VGW was forced to leave Michigan.
Current Legal Proceedings
Kennedy’s complaint, which questions the legitimacy of social casinos and sweepstakes, is still receiving attention. Her case aims to create a precedent in a legal environment that has, for the most part, favored the owners of these gaming models.
