A class action lawsuit was filed in a U.S. district court Wednesday against sweepstakes casino operator VGW Holdings, payment processors Yodlee and Trustly, ID verification vendor Jumio, and slots influencer Brian Christopher.
Key Takeaways
- Sweepstakes casinos are coming under increased legal and regulatory pressure.
- The current case claims VGW specifically targets states where online casino gambling is illegal.
Although filed in California, this case claims to additionally represent VGW users from Georgia, Illinois, Kentucky, Massachusetts, Mississippi, Missouri, New Jersey, New Mexico, Ohio, South Carolina, Tennessee, Wisconsin, and the District of Columbia.
Sweepstakes casino company VGW offers online sweeps games Chumba Casino and LuckyLand Slots. Sweepstakes operators are unlicensed and unregulated but try to skirt state laws by offering “free play” casino games.
The companies use digital currencies, which have no direct cash value. Players, however, can spend real money to enhance their play. And players can lose real money, as well.
VGW avoided a previous class action lawsuit filed in Georgia on the grounds that the company had limited presence in the Peach State. While VGW is headquartered in Australia, Jumio, Yodlee, Trustly, and Brian Christopher all primarily operate out of California.
The lawsuit states, “VGW’s illegal gambling enterprise is not, and cannot be, operated by VGW alone. The illegal enterprise is only possible with the aid and assistance of multiple partners. VGW runs much or all of its operation through California, and has partnered with certain California-based individuals and companies, which provide essential gambling services to the VGW Casinos. These California partners include: (1) Jumio Corporation; (2) Yodlee, Inc.; (3) Trustly, Inc.; and (4) Mr. Brian Christopher Misfud."
Brian Christopher isn’t the first endorser or influencer tagged in a California lawsuit for an association with VGW, as “American Idol” host Ryan Seacrest was sued in the spring for allegedly promoting illegal gambling.
This new suit claims Christopher earns commissions from VGW when players sign up through his ads or endorsements on social media, where he’s seen playing on one of VGW’s websites.
Additionally, Christopher has his own branded slot games available on Chumba Casino. Christopher has warned would-be influencers to do their due diligence when partnering with gaming companies. He specifically warned people to avoid crypto casinos because they were
“unregulated.” Yet, VGW is both unlicensed and unregulated in the state of California.
VGW exits a dozen states
In May, VGW pulled out of New York after the Empire State introduced a number of bills that would specifically ban sweepstakes casinos. Likewise, VGW exited New Jersey ahead of its potential ban of sweeps. So, far, the sweeps company has vacated roughly a dozen states, including Nevada, Montana, Washington, Montana, Mississippi, Michigan, Louisiana, Connecticut, Delaware, and Idaho.
California is also considering beefing up its anti-sweeps laws, but VGW has yet to leave the state. On Tuesday, VGW signed a conditional agreement with the Kletsel Dehe Wintun Nation of the Cortina Rancheria in California.
