Delaware regulator sends cease-and-desist to VGW Luckyland
The VGW Holdings subsidiary was operating illegally in the state
Key Points
- VGW Luckyland has been sent a cease-and-desist order from the Delaware Division of Gaming Enforcement
- The operator offered sweepstakes play with real-money prizes
- Delaware residents are no longer able to access the platform
Following an investigation, the Delaware Division of Gaming Enforcement (DGE) has sent a cease-and-desist to Australian-based VGW Luckyland for operating ‘illegal online gaming’ aka sweepstakes in the Diamond State.
It was concluded by the regulator that VGW Luckyland had labelled its services as sweepstakes. However, this was concluded to be a misrepresentation, as the operator allowed players to purchase coins for casino-style play, with cash prizes available. As such, VGW Luckyland was in violation of the Delaware Constitution, the Delaware Penal Code and the Delaware Gaming Competitiveness Act of 2012.
Following a cease-and-desist order, VGW Luckyland’s products were removed from the Delaware market.
The regulator went on to highlight the importance of following regulatory practices, noting the threat of cybercrime, identity theft and fraud faced by players in an unregulated environment. It also noted impersonators of legal operators in the state, which use similar names and logos to trick players.
Good to know: We explored the emerging sweepstakes market in the January/ February issue of Gaming America
Indeed, across the US, several offshore operators have received cease-and-desist orders for illegal operations. Recently, Lucky Tiger Casino and Rich Palms Casino, operated by Curaçao-based Alistair Solutions, received a cease-and-desist order from the Michigan Gaming Control Board, after it was found that the sites were offering unregulated gaming in the state.
However, in the case of VGW Luckyland, the issue relates more widely to the growing sweepstakes market, and the orders being put in place across various states to ban or regulate the market. Lawmakers in New York and Arkansas banned sweepstakes last month, while earlier this week, the Social and Promotional Games Association voiced its opposition to a bill looking to also ban sweepstakes in Louisiana.
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