Kentucky Attorney General Russell Coleman filed a lawsuit in Franklin Circuit Court against VGW, accusing the company behind sweepstakes casino sites of operating illegal gambling in the state. The complaint says the business uses casino-style games and a virtual-currency structure that, Kentucky argues, crosses the line into wagering.
According to Spectrum News 1, Coleman announced the case on Wednesday as one of three lawsuits filed that day. In the VGW action, the state says the company runs websites that mimic traditional casino games, including slots and blackjack, and that it uses two kinds of virtual chips, including Sweeps Coins that can be bought with real money and cashed out for winnings.
The filing targets VGW’s sweepstakes casino brands Chumba Casino, Global Poker and LuckyLand Slots, according to Marshall County Daily. Deadspin similarly reported that Kentucky says the sites are marketed as promotional sweepstakes but function as unlicensed online gambling.
Kentucky’s argument is that the dual-currency setup amounts to gambling because players are effectively wagering something of value for the chance to win money. BettorsInsider reported that the state says the arrangement would require a Kentucky gaming license, which VGW has not obtained.
Coleman said the office has a duty to stop illegal gambling in Kentucky regardless of how it is packaged. He also said the company may be using “new technology and a new scheme to hide,” but that “the reality is the same.”
VGW rejected the claims and said it plans to vigorously defend the lawsuit, according to Casino.org. The company said it has lawfully operated in the US for more than a decade and described its games as free, fun entertainment.
