What Just Happened?
VGW Holdings, the company behind sweepstakes-style platforms like Chumba Casino, LuckyLand Slots, and Global Poker, just scored a legal win. On August 19, a federal judge in Montana officially dismissed a class-action lawsuit without prejudice, meaning the case could still be refiled down the line.
The lawsuit, led by Montana resident Michael Lighter and others, claimed VGW’s digital sweepstakes model constituted illegal gambling. Specifically, they targeted the way players use virtual currencies and promotional tokens to play casino-style games with the potential to win cash prizes.
VGW was due to respond in court by mid-August, but instead moved to dismiss the case entirely. The judge granted the request. No trial, no ruling on the legality of the sweepstakes model, just a straight end to the current proceedings.
For VGW, it’s a break in the legal storm. But because the case wasn’t thrown out “with prejudice” (i.e., permanently), the underlying legal questions remain wide open.
A Lawsuit with a Twist
Here’s where it gets a little different: this case wasn’t brought by the players themselves. Instead, it came from their spouses, people who said they were hurt financially and emotionally by a loved one’s losses on VGW platforms.
The idea was to use “loss recovery” laws to claim compensation. Basically, they argued that the sweepstakes games didn’t just affect the players, but also the people around them.
It was a unique angle, but it didn’t stick. The case was dismissed before it could get that far. Still, it shows how the sweepstakes debate is growing, and how more people, not just players, are starting to speak up.
Why This Dismissal Matters
For VGW, this is a win, but it’s more of a breather than a breakthrough. They’ve already pulled out of Montana, so the heat is off for now. But here’s the key: the judge didn’t say VGW’s sweepstakes model is legal. They just said this particular lawsuit didn’t stick.
Translation? The door’s still wide open for another case down the line, especially if someone comes forward with a stronger legal argument. So while VGW dodged this one, the bigger fight around sweepstakes-style gaming isn’t over.
The Broader Battlefield
This lawsuit might be done, but Montana’s message is loud and clear: sweepstakes casinos aren’t welcome. The state recently passed a law banning games that walk, talk, and spin like real-money gambling, even if they use virtual coins.
And they’re not messing around. Violators can face hefty fines, lose their business licenses, or even land in jail.
Montana isn’t alone, either. States like Connecticut, Mississippi, and New Jersey are also tightening the screws, whether through outright bans or waves of cease-and-desist letters. The pressure is mounting, and sweepstakes operators are feeling the heat nationwide.
What This Means Going Forward
VGW dodged a legal hit in Montana, but not a legal verdict. The case is gone for now, but could easily return. More importantly, the bigger question – are sweepstakes casinos legal or not? – still doesn’t have a clear answer. As more states crack down, this space is only getting hotter.
Blaise Luis
