Federal Court Rules Offshore Sweepstakes Casinos Hard to Prosecute in US Jurisdiction
Legal challenges against online sweepstakes casinos face significant jurisdictional hurdles, as highlighted by a recent federal court ruling in Georgia's Northern District. Judge Thomas Thrash dismissed a case against VGW Holdings Limited, citing lack of personal jurisdiction over the offshore gaming company.
VGW Holdings operates popular platforms including LuckyLand Slots, Chumba Casino, and Global Poker from Malta, while being registered in Australia and Delaware. These platforms offer initial free play followed by opportunities to purchase sweeps coins that can be converted to real money.
Wooden gavel on courtroom desk
Key points from the ruling:
- The court found that website accessibility and payment acceptance from Georgia users were insufficient to establish jurisdiction
- VGW's foreign-based operations make them largely immune from U.S. civil litigation
- The company's interactions with Georgia weren't "continuous and systematic" enough to warrant state jurisdiction
Industry Impact:
- Gaming lawyer Daniel Wallach notes this ruling demonstrates the challenges in legally challenging sweepstakes casino operations
- Several states including Connecticut, Idaho, Michigan, Montana, and Washington have issued cease-and-desist orders
- Kentucky, Louisiana, Nevada, and Washington, D.C. have declared these operations illegal gambling
The ruling highlights a significant challenge for U.S. regulators and the regulated gaming industry in controlling offshore sweepstakes casino operations, despite growing concerns about their legality.
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