Described in the lawsuit as “unpermitted techniques” to force local consumers to play, these tactics were allegedly designed to make people lose their Sweeps Coins
As the wider crackdown on the US sweepstakes sector continues, individuals continue to seek restitution for the money they spent on what regulators call “illegal gambling” or damages because of alleged underhanded tactics. In a recent lawsuit in Connecticut, a resident complained that one such platform took his money while inducing him to continue playing.
Resident Says VGW’s Products Were Designed to Keep Players Spending
As reported by gambling law expert Daniel Wallach, a Connecticut resident has sued VGW, one of the biggest sweepstakes operators in America, in Hartford Superior Court. In their lawsuit, the resident argued that VGW operated an illegal online gambling platform. In addition to that, the operator constantly encouraged the plaintiff to continue playing.
The aggravated customer alleged that the operator had established onerous redemption restrictions in order to keep him wagering. Described in the lawsuit as “unpermitted techniques” to force local consumers to play, these tactics were allegedly designed to make people lose their Sweeps Coins.
The techniques in question included severe restrictions on redeeming and turning coins into real money. To elaborate, the minimum permitted redemption amount on the operator’s Chumba and GlobalPoker brands is 100 coins, which can be converted into $100. Similarly, the minimum on LuckyLand is 50 Sweeps Coins to be redeemed for $50.
Because of this minimum, any balance below the threshold remains stuck on the site and cannot be withdrawn or deposited, the plaintiff argued.
To make matters worse, VGW allegedly had long delays in approving and processing coin redemption. The plaintiff implied that this was a tactic to dissuade players from withdrawing their funds and encouraging them to play more and lose their coins instead.
The consumer also pointed out that the sweepstakes operator had operated for months after receiving a cease-and-desist letter from the Connecticut Department of Public Safety.
Sweepstakes in Trouble
Speaking of Connecticut, the state just hit VGW with a class action lawsuit because of its continued operation despite the earlier cease-and-desist letter. VGW, which claims to offer social casino offerings, was described as an unlicensed online gambling operator by the Connecticut authorities.
Plaintiffs furthermore accused the operator of posing as a legal product.
The action against VGW aligns with a broader pushback against the sweepstakes sector. Sweepstakes, which have long been considered “gray area gambling,” are a form of entertainment that seeks to avoid regulation by distinguishing itself from traditional gambling.
Despite that, regulators and industry stakeholders have scrutinized the sector, saying that the model’s status should be re-examined.
