While the company successfully defended itself against accusations of illegally targeting Georgian customers, the broader crackdown on sweepstakes means VGW is not yet in the clear
In a significant legal victory for VGW Holdings, a popular player in the US sweepstakes sector, the Georgia Northern District Court has dismissed a class action lawsuit against the operator. Fair Gaming Advocates, an advocacy group for players’ rights, alleged that VGW’s gaming platforms violated state regulations. However, Judge Thomas Thrash has now ruled the Georgia court lacked jurisdiction to hear the case.
VGW Did Not Target Georgian Customers
Fair Gaming Advocates argued that VGW allowing Georgia residents to use its services and employing two remote workers residing within the state justified the court’s authority to oversee the matter. However, Judge Thrash did not accept these arguments, citing insufficient business interaction within the state to meet the threshold under Georgia’s long-arm statute (O.C.G.A § 9-10-91).
Judge Thrash stated that exercising jurisdiction in this case would defy “traditional notions of fairness and substantial justice.” The court determined that VGW not directly targeting Georgia meant its platforms were passive, drawing parallels to previous similar cases. Thrash concluded that VGW could not conceivably have foreseen a lawsuit in Georgia simply because its websites were accessible by Georgia residents.
While the Defendants casino gaming websites were accessible by Georgia users and the Defendants accepted payments from Georgia users, the Court finds this limited interaction.
Fair Gaming Advocates vs VGW Holdings court ruling
While VGW had filed a motion to compel arbitration, a common outcome for many similar lawsuits, Judge Thrash noted that the court’s refusal to hear the case also extended to its authority to enforce arbitration. The decision represents a significant victory for VGW, which has been battling numerous class action suits filed around the country.
Other Serious Accusations Remain
As regulatory scrutiny of the sweepstakes gaming model intensifies, VGW faces similar lawsuits in Connecticut and New York. In Connecticut, one plaintiff sued VGW over allegedly operating illegal online gambling platforms while also imposing unfair redemption restrictions. The complaint pointed to VGW’s minimum redemption thresholds as an alleged way to keep player funds hostage and make the players gamble more.
More recently, a class action lawsuit was brought against VGW and co-defendants Apple and Google in New York. The complaint accused the tech giants of knowingly assisting illegal gambling operations and collecting revenue shares. The lawsuit invoked the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, intensifying the pressure on VGW and its partners.
While the dismissal in Georgia is a positive outcome for VGW, the company’s legal battles are far from over. With class action lawsuits mounting and rising regulatory pressures, VGW’s operations face unprecedented scrutiny. The outcome in Georgia may only be one chapter in the ongoing debate over sweepstakes gaming legality, ensuring VGW will remain in the spotlight for the foreseeable future.
