A federal judge in Georgia's Northern District ruled that the court lacks jurisdiction over VGW Holdings Limited and its subsidiaries in a case involving online sweepstakes casinos, highlighting the challenges in litigating against offshore gaming operators.

Judge Thomas Thrash dismissed the case brought by Georgia citizens who claimed losses from VGW's online sweepstakes platforms, including LuckyLand Slots, Chumba Casino, and Global Poker. These platforms offer free initial play followed by purchasable "sweeps coins" that can be converted to real money.

The court determined that VGW's limited interaction with Georgia users through their websites was insufficient to establish jurisdiction under Georgia law. Despite VGW being registered in Delaware and operating from Malta, the judge ruled that their connection to Georgia wasn't "continuous and systematic" enough to subject them to the state's jurisdiction.

Gaming industry attorney Daniel Wallach noted this ruling demonstrates the difficulty in using private civil litigation to challenge the legality of sweepstakes casino operations.

Several states, including Connecticut, Idaho, Michigan, Montana, and Washington, have issued cease-and-desist orders to sweepstakes casino operators. Kentucky, Louisiana, Nevada, and Washington, D.C. have declared these operations illegal gambling enterprises. Despite this opposition from regulators, the ruling shows the complexity of enforcing gambling laws against offshore operators.

Related Articles

Previous Articles