Entertainment company Virtual Gaming Worlds (VGW) has continued operating its online gaming platforms in Arizona despite being ordered by state regulators to shut down in November 2024 over alleged illegal gambling.
- VGW continues operating in Arizona despite a November 2024 order to cease its online gaming activities.
- Arizona regulators maintain that VGW’s platforms constitute illegal gambling.
- VGW has made six-figure donations to political groups linked to Democrats and Republicans.
According to Arizona Republic, the Arizona Department of Gaming first challenged VGW’s operations almost two years ago, alleging that its websites Chumba Casino, Global Poker, and Luckyland Slots broke state gambling laws.
The department argued that users’ ability to purchase virtual currency and redeem winnings for cash and other prizes meant the websites amounted to unlicensed gambling, despite offering free-play options.
VGW disputed the allegations, arguing that its sweepstakes casino platforms did not constitute gambling because users could participate without paying.
Regulators rejected the argument in December 2024, reiterating that its operations amounted to illegal gambling and ordering it to stop operating in Arizona.
Almost two years later, no civil or criminal charges have been brought against VGW in the state. A spokesperson for the Arizona Department of Gaming, Jessica Roza, said earlier this week that it still considers the company’s activities illegal and is assessing possible enforcement action.
The Attorney General’s Office said VGW’s overseas headquarters creates challenges for state prosecutors pursuing action against the company.
Political donations
VGW’s continued presence in Arizona comes as the company has made substantial political donations.
The company has contributed over $200,000 to political groups associated with Arizona Democrats, including organizations supporting Gov. Katie Hobbs and Attorney General Kris Mayes. VGW’s affiliate, Luckyland, also donated to a group backing Hobbs.
Republican-aligned groups also received funding, including $140,000 towards efforts to maintain Republican control of Arizona’s legislature and $10,000 to a group supporting Mayes’ opponent in the attorney general's race, Warren Petersen.
A spokesperson for VGW, Michael Bennet, said the company remained confident that it complied with applicable laws and supported discussions with states on regulating its gaming model. The company didn’t address questions about its continued operations in Arizona.
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Kalshi and Polymarket increase political donations
VGW isn’t the only gaming operator increasing its political contributions amid regulatory scrutiny. Prediction market platforms Kalshi and Polymarket, alongside their founders, have donated at least $5 million combined to political groups during the current election cycle.
According to Reuters, the contributions mark a significant increase from 2024, with funding directed towards both Democratic and Republican groups.
The spending increase comes as both companies face legal challenges from states seeking to classify their sports event contracts as gambling. The platforms maintain their markets fall under federal oversight, not state gambling regulation.
