VGW Wins Third Georgia Lawsuit as Legal Challenges Mount Nationwide

While sweepstakes casinos are facing mounting threats across the US as more states ramp up regulatory and legislative enforcement, VGW, the parent of Chumba Casino, LuckyLand Slots, and Global Poker, has scored another legal victory in Georgia.

Earlier this month, the US District Court for the Northern District of Georgia granted VGW’s motion to dismiss a class-action lawsuit filed by plaintiff Destiny Kennedy.

Judge Thomas Thrash found that the plaintiff, who initially filed the suit in a state court over a year ago, had not validly opted out of VGW’s updated arbitration clause. Thrash denied Kennedy’s motion to amend and declined to certify the class, marking a dismissal on procedural grounds.

As SBC Americas reported, VGW also argued that the Georgia court lacked jurisdiction to hear the case. The judge agreed and cited the jurisdiction issue as a primary basis for dismissal. Judge Thrash noted:

“The Plaintiff does not identify any actions taken by VGW Group that were expressly aimed at Georgia. VGW Group does not purposefully target or direct any marketing or other business activities specifically toward Georgia residents.”

VGW’s Third Victory in Georgia

The dismissal of Kennedy’s lawsuit marks VGW’s third legal victory in the state. It was also the second time Judge Thrash has ruled in its favor.

In 2023, an anonymous “John Doe” plaintiff filed a lawsuit, alleging that VGW was running an illegal gambling operation. The case was sent to arbitration under VGW’s operative dispute resolution clause.

Like Kennedy’s case, the second lawsuit was a class action, filed by Fair Gaming Advocates. The plaintiff alleged that VGW’s sweepstakes operations constituted illegal gambling under Georgia law.

Thrash dismissed the lawsuit in December 2024, stating that the court lacked standing to hear the case. The plaintiff argued that because VGW had two remote employees who reside in Georgia and accept players from the state, the court was an appropriate venue for the case.

The judge disagreed, noting that VGW’s passive website and two remote employees were insufficient to establish jurisdiction under Georgia’s long-arm statute.

Other VGW Litigation: Kentucky, Alabama & Beyond

Georgia is not the only state where VGW has faced legal action.

In 2023, the company agreed to settle a class action lawsuit in Kentucky for $11.75 million. The plaintiff, Amy Jo Armstead, alleged that the sweepstakes currency model violated Kentucky gambling laws. That’s because users spent real money on virtual coins.

Meanwhile, an ongoing legal action against VGW is one of over a dozen lawsuits targeting sweepstakes casinos. The plaintiff, Amy Nicole Seal, initially filed the suit in 2023 in the US District Court for the Northern District of Alabama.

In January 2025, the federal court granted a motion to remand the action back to the Franklin County Circuit Court. It found that there was no federal jurisdiction under the Class Action Fairness Act (CAFA) and that the amount in controversy was insufficient.

Elsewhere, in New York, where sweepstakes casinos are now illegal, a class-action in the Southern District of New York accuses VGW of conducting unlawful gambling through its dual-currency model.

The notable difference in this suit is that it also names Apple and Google as defendants. It alleges that they facilitated and gained from VGW’s illegal gambling operations by distributing its apps and processing payments.

The plaintiffs have also invoked the Racketeer Influenced and Corrupt Organizations (RICO) Act. Invoking RICO is a legal mechanism typically used to prosecute organized criminal enterprises. The plaintiffs seek restitution and injunctive relief.