VGW left “deeply disappointed” following Delaware cease-and-desist order
Australia-based firm disagrees with accusations made by the state’s Division of Gaming Enforcement, claiming the regulator previously acknowledged the sweepstakes operator’s activities “had caused no harm to Delaware residents”
Australia-based sweepstakes operator VGW has hit back at Delaware’s Division of Gaming Enforcement (DGE) after receiving a cease-and-desist order from the regulator.
DGE issued the order last week after its investigation found the operator’s subsidiary, VGW Luckyland, to be “operating illegal online gaming” in Delaware without a license.
The regulator also alleged VGW had “misrepresented its services as a promotional sweepstakes” by allowing players to purchase coins for casino-style games, leading to potential cash prizes.
Players have been prohibited from accessing VGW’s platform since April 2.
In a statement released following the Delaware decision, VGW expressed its disappointment while asserting that it remained compliant with state legislation.
The statement read: “VGW stands by its online, casino-themed, free-to-play social games and sweepstakes promotions and continues to believe they comply with Delaware law, as well as the laws of all other jurisdictions in which those games continue to be offered.
“VGW is deeply disappointed at the statement issued and disagrees with its assertions. VGW is committed to working with state legislators to establish modern regulatory structures that safeguard players and provide benefits to state revenue through appropriate taxation frameworks.
“Similarly, we are also committed to respectful engagement with state authorities or agencies.”
VGW went on to claim the DGE had previously acknowledged that the operator’s product wasn’t harmful to Delaware players.
The company also said attempts to open a dialogue with the regulator were ignored.
The statement continued: “In this situation, at the urging of the Delaware Lottery, DGE demanded that VGW cease operating despite the DGE’s own communications acknowledging that VGW’s activities had caused no harm to Delaware residents.
“VGW attempted to engage with DGE to understand its concerns, repeatedly requesting the opportunity to discuss these issues with the agency, but were rebuffed.
“As such, VGW elected to voluntarily withdraw its services from Delaware earlier this month, despite disagreeing with the DGE’s position.”
The cease-and-desist order sent to VGW from the DGE was related to an initial request dating back to February 2023.
VGW also received a similar order in the state of Maryland back in March after its Chumba Casino and Luckyland Slots brands were alleged to be conducting online gaming activities without a license.
“VGW has operated in North America for more than a decade, creating not only great games, user experiences, and entertainment but ensuring this is done safely, responsibly, and at the highest level of standards.
“Our full confidence in our compliance with all laws and regulations where we operate remains unchanged,” the statement concluded.