The State of Louisiana is set to take on a major facet of the gaming industry that could have sweeping impacts on the rest of the United States.
Louisiana is suing Virtual Gaming Worlds (VGW) and MW Services for nearly $44 million in unpaid taxes for virtual currency sales on their sweepstakes platforms.
Key Takeaways
- The suit comes as Louisiana continues efforts to crack down on sweepstakes casinos.
- Louisiana Department of Revenue (LDR) suing multiple sweepstakes operators in the hopes of claiming nearly $44 million in purported unpaid taxes.
Allegations include that both companies “had a duty to collect and remit sales tax and failed to do so,” with the penalties based on purported sales of the operators' virtual currencies provided via the platform, per Daniel Wallach, a sports betting and gaming lawyer.
BREAKING: The Louisiana Department of Revenue has sued online sweepstakes casino operators VGW and MW Services (dba "WOW Vegas") for $44 million in unpaid taxes, interest, and penalties based on estimated sales of virtual currency to in-state residents. pic.twitter.com/VOUSBMHloT
— Daniel Wallach (@WALLACHLEGAL) September 6, 2025
The move is the latest effort by the state to curtail the sweepstakes casinos locally, which exist in something of a grey area in the world of betting.
In April of this year, Louisiana Senator Adam Bass sought to outlaw the operation and promotion of the sites with the introduction of Bill SB 181, which targeted “Gambling by computer,” including casino-style gaming, lottery games, as well as sports wagering.
With regards to sweepstakes casinos, the legislation specifically sought to eliminate online games that utilize a “dual-currency system of payment allowing the player to exchange the currency for any prize or award,” including cash or cash equivalents.
“Following a review of applicable Louisiana statutes and legal precedent, it is the opinion of this office that online businesses offering casino-style games – purporting to be sweepstakes or social gaming platforms – are operating in violation of Louisiana law,” Louisiana Attorney General Liz Murrill said back in July. “These activities constitute illegal gambling and illegal gambling by computer under multiple provisions.
“While the operators claim these games are promotions in nature, users may purchase ‘Gold Coins’ and receive ‘Sweeps Coins’ as a bonus, typically in the same dollar amount as the purchase, which can then be used to play games and be redeemed for cash or valuable prizes,” she added.
Louisiana continues efforts to fight sweepstakes
Throughout 2025, the Pelican State has served as a leader with regard to the push to eliminate sweepstakes gambling, with the state senate having voted to pass a bill back in April banning the practice unanimously.
The state’s governor, Jeff Landry, ultimately vetoed the bill shortly thereafter, arguing that the state already had laws and regulators in place to enforce compliance.
Meanwhile, since the bill’s passage this past spring, both sweepstakes operators named in the bill, VGW and MW Services (trading as WOW Vegas), have been forced to shift operations in the state. VGW announced restrictions on the usage of its sweepstakes coin back in July, while WOW Vegas exited the state altogether in mid-July.
