VGW sued for $32m by Louisiana Department of Revenue

The suit alleges that the sweepstakes operator owes unpaid sales tax in the state.

Sweepstakes operator VGW has been sued for approximately $32.47m by the Louisiana Department of Revenue, who are seeking to recover alleged unpaid sales tax from the entity via this lawsuit.  

This latest action comes following the Louisiana State Governor Jeff Landry’s decision to veto an anti-sweepstakes bill approved by the state House and Senate in June. Subsequently, a key recent opinion was issued by Louisiana Attorney General Liz Murrill, clarifying that online casino gaming has remained illegal in the state.  

Now, the Department of Revenue has now utilized this clarification as part of this latest suit, as it enables the regulatory agency ammunition to chase any unpaid taxes by sweepstakes operators in currently active in Louisiana. Indeed, in addition to VGW, sweepstakes operator WOW Vegas has also been named as part of this suit, with the Department of Revenue seeking an additional $13.5m in unpaid tax from the entity.  

As part of the VGW section of this latest lawsuit, the Louisiana Department of Revenue cites taxes and penalties ranging from early 2019, including a delinquent filing penalty, tax penalty and accuracy-related penalty – alongside unpaid taxes. The suit also underlines VGW’s pursuit of a regulated sweepstakes market in California and recent withdrawals from the Delaware and New York state markets.  

Good to know: Last month, VGW announced a groundbreaking partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria Tribe – based in California 

Indeed, this partnership was formed as the pair seek to contest a newly proposed anti-sweepstakes bill – AB 831 – which would restrict sweeps activity in California – representing the first formal collaboration between a sweepstakes operator and Tribal entity.  

Elsewhere, VGW also announced last month that it would be formally exiting the Canadian market to re-focus its attention on the US landscape, where it yields a much larger presence.  

Will Underwood

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