Greg Nolt, director of the Delaware Division of Gaming Enforcement, confirmed to Legal Sports Report recently that the Delaware sports betting regulator sent a cease-and-desist order to sweepstake operator Virtual Gaming Worlds (VGW) in February 2023.
Delaware Division of Gaming Enforcement said Virtual Gaming Worlds is in violation of state law
VGW, an Australian company, is still operating in Delaware and owns Chumba Casino, Global Poker, and Luckyland Casino. Sweepstakes casinos offer traditional casino games such as slots, roulette, blackjack, and poker. Players can play for free or buy virtual currency (often called Gold Coins) to enhance their gameplay.
Nolt wrote in a statement to LSR:
“The Delaware Division of Gaming Enforcement (DGE) issued a Cease Desist Order against VGW (Virtual Gaming Worlds) Luckyland Inc. on February 23, 2023, concerning their Slot Operations/Games in Delaware. The order stated: Permitting those people who reside in Delaware to participate in these games is in violation of Delaware law.
“They were instructed to immediately suspend all such accounts accessed by users physically located within the State of Delaware. The Delaware Division of Gaming of Enforcement (DGE) has not received any complaints from Delaware residents against VGW.”
Sweepstakes casinos are becoming the main topic of an ever-changing legal landscape
Not all sweepstakes casinos are licensed or regulated via gaming commissions. Although actual cash is among the prizes for Chumba, Global Poker, and Luckyland players, it’s a result of the user winning the games instead of risking real money.
Furthermore, players are able to obtain free tokens to play games with. The majority of the online slots on VGW’s sites are similar to what gamblers will find on licensed operators’ apps and websites. However, VGW offers such games without an online casino license in states such as Delaware.
The American Gaming Association (AGA) recently began asking state regulators to review the operations of sweepstake operators. Michigan regulators sent similar cease-and-desist orders to multiple sweepstakes casino operators in late 2023.
Per LSR, those three operators (VGW, Stake.us, and PredictionStrike) all ceased operations in the Great Lakes State. In addition to Michigan, VGW does not offer its products in Idaho and Washington. Both states have legislation that bans sweepstakes casinos and sportsbooks from operating in local markets.
Since online casino play is producing more revenue for the Delaware Lottery than ever before, state regulators are trying to help licensed casino operators by protecting their interest there. Online casinos are not interested in the two coexisting in the same jurisdiction.
