VGW Faces 11th Federal Lawsuit in Mississippi

Are sweepstakes casinos pushing legal boundaries? VGW, a major player in the online sweepstakes casino world, faces its 11th federal lawsuit, this time in Mississippi. Plaintiff Makayla Darrielle Saulny accuses VGW of running illegal gambling operations in the state, claiming that players should be repaid for losses incurred on the platform. With VGW’s business model under increased scrutiny from media, regulators, and law enforcement, is the company’s defense strong enough to withstand these mounting legal challenges? Read on to understand how this case could reshape the future of online gambling.

VGW Faces 11th Federal Lawsuit in Mississippi Amid Allegations of Illegal Gambling

VGW Holdings, the operator behind popular sweepstakes casinos like Luckyland Slots and Chumba Casino, is once again in the legal spotlight. The company is defending its 11th federal lawsuit, this time filed in Mississippi. The plaintiff, Makayla Darrielle Saulny, claims VGW violated Mississippi’s gambling laws and is seeking to recover all money lost by players within a three-year period following August 20, 2021.

Saulny’s lawsuit, originally filed in the Circuit Court of Hinds County, was successfully moved by VGW to the US District Court for the Southern District of Mississippi. This legal maneuver is part of VGW’s broader strategy to shift state-level lawsuits to federal courts, where they believe their defense may fare better. In fact, VGW has consistently fought to remove cases from state to federal courts in similar disputes across the United States.

The crux of the lawsuit revolves around a section of the Mississippi Code that allows individuals to recover money lost in illegal gambling activities. Saulny’s attorney argues that VGW’s sweepstakes casino model, which allows players to purchase virtual currency for chances to win real money, constitutes illegal gambling under Mississippi law. The suit demands that VGW repay all funds lost by Mississippi players who engaged in the platform’s activities.

VGW is not new to these types of legal challenges. The company is currently defending multiple lawsuits across the U.S., with its business model facing growing scrutiny from regulators, the media, and law enforcement agencies. Sweepstakes casinos operate in a grey area of U.S. gambling law, and VGW’s model, which allows users to buy virtual currency for the chance to win real cash prizes, has sparked significant legal debate.

Payment Processors Under Fire

An emerging aspect of VGW’s legal woes is the inclusion of payment processors in these lawsuits. In August 2024, one of the most advanced lawsuits against VGW, filed in Florida, was amended to include Worldpay, a major payment processing company. The case, Knapp v. VGW and Worldpay, alleges that Worldpay “aided and abetted” VGW’s gambling operations by facilitating transactions on its platform.

Gaming attorney Daniel Wallach, a key figure following the case, has described it as one of the most detailed and far-reaching of VGW’s legal battles. The lawsuit against VGW and Worldpay highlights growing concerns about the role of payment processors in potentially illegal gambling operations. According to the complaint, Worldpay is accused of being complicit in a conspiracy to support VGW’s gambling activities.

Growing Legal Pressure on VGW

VGW’s legal troubles are not confined to Mississippi and Florida. The company has received cease-and-desist letters from several state attorney generals in regions where online gambling is strictly regulated. These legal actions suggest that VGW’s sweepstakes model could face even more challenges as states continue to crack down on grey-market operators. VGW recently appealed a decision from a Tennessee federal judge who remanded another case back to state court, indicating that the company will continue to fight vigorously to protect its business model.

As VGW faces its 11th federal lawsuit, the spotlight on its operations is only intensifying. With increased media coverage and regulatory scrutiny, VGW’s legal battles are likely to shape the future of sweepstakes casinos and their role in the broader online gambling market.

As VGW faces its 11th federal lawsuit in Mississippi, the company finds itself at a critical juncture. The legal claims, including accusations of illegal gambling and complicity by payment processors like Worldpay, could have far-reaching consequences for VGW’s business model. While VGW has fought to move cases to federal courts and protect its sweepstakes platform, the growing legal pressure from multiple states is a significant challenge. The outcome of these cases will likely influence the future of sweepstakes casinos and set important legal precedents for the entire online gambling industry.