Context & Timing
On July 10, sweepstakes casino giant Virtual Gaming Worlds (VGW) quietly updated its terms and conditions across Chumba Casino, LuckyLand Slots, and Global Poker. The changes come as AB 831, California’s proposed ban on dual-currency sweepstakes platforms, climbs through the state Senate, raising the stakes for operators.
What VGW’s Updated Terms Do
VGW added a key California-only clause requiring users to waive rights under Civil Code §1542. In simple terms: Californians agree they won’t sue VGW over any claims—known or unknown—related to sweepstakes play.
“If you are a consumer who resides in California, you waive your rights under California Civil Code 1542…” the updated T&Cs state.
This isn’t just legal mumbo-jumbo, it’s a strategic shield. By cutting off user litigation in advance, VGW is protecting itself against lawsuits tied to its dual-currency sweepstakes model.
Introducing Sales Tax on Gold Coins
That’s not all, VGW is also rolling out sales tax fees on Gold Coin purchases in states including Kentucky, Illinois, Arkansas, Pennsylvania, and Hawaii, with more expected to follow.
A VGW spokesperson said:
“We acknowledge this is a change for some of our players… as the legal framework has evolved… we’ve determined it is the appropriate time to take this action… part of our commitment to integrity and compliance.”
VGW has previously told California lawmakers it’s open to helping the state raise revenue, and charging sales tax is one way to show good faith. It’s a way of saying: ‘We’re not the problem. We’re willing to play by the rules.’”
» Read more about how sweepstakes winning are taxed.
Why This Matters
VGW’s two big moves, waiving legal claims and taxing Gold Coins, aren’t just internal policy tweaks. They’re strategic moves with real implications.
By invoking California Civil Code §1542, VGW is cutting off surprise lawsuits before they start. No “I didn’t know I could sue” claims down the line, just a clean legal slate for users in California.
Then there’s the tax angle. Charging sales tax on Gold Coins isn’t just about compliance, it’s about optics. It’s a way of saying: “We’re not dodging the rules. We’re here to contribute.”
Together, these steps also boost VGW’s lobbying firepower. By voluntarily limiting liability and creating tax revenue, VGW is making a case: let us stay in the game, we’re willing to play by the rules.
Tribes Want Profits Back, While VGW Builds a Firewall
For California’s tribal leaders, it’s not just about shutting sweeps down, it’s about disgorgement: forcing companies like VGW to give up every dollar made from what they call illegal gambling.
VGW knows it’s in the crosshairs. The company is already fighting class-action lawsuits in Georgia, Massachusetts, Illinois, Kentucky, and more. By getting California players to waive their right to sue, it’s building a legal firewall, trying to keep one of the biggest battlegrounds off the board.
What’s Ahead
AB 831’s next stop is the Senate Appropriations Committee, and VGW’s legal moves could shape how lawmakers view the stakes. By preemptively tightening its terms and collecting sales tax, the company is showing that they’re not dodging regulation, they’re adapting to it.
But the ripple effect won’t stop there. Expect more operators to follow suit, tweaking policies, updating taxes, and building legal shields as similar bans take shape in other states.
And as for California regulators? They’ll be watching closely. VGW’s self-policing might earn points, or it might just raise the bar for what “compliance” really looks like.
Blaise Luis
