Arkansas Attorney General Tim Griffin has filed a lawsuit against sweepstakes gaming operator VGW, accusing the company of violating the state’s Deceptive Trade Practices Act through its dual-currency casino model. The legal action targets VGW’s operations in Arkansas, including its Chumba Casino, LuckyLand Casino and Global Poker brands.<\/p>\n\n\n\n
Griffin argues that VGW’s position that it does not operate a gambling business is misleading. According to the attorney general, the company’s virtual currency system allows customers to spend real money on casino-style games and subsequently redeem winnings for cash, making the activity comparable to traditional gambling.<\/p>\n\n\n\n
The lawsuit seeks several forms of relief, including consumer restitution, financial penalties, unpaid taxes and an injunction against the company’s activities.<\/p>\n\n\n\n The central issue in the case is VGW’s use of two separate virtual currencies: Gold Coins and Sweeps Coins. Customers purchase Gold Coins using real money and receive Sweeps Coins as a promotional bonus. While Gold Coins are primarily used for entertainment, Sweeps Coins can be used to participate in casino-style games, with winnings eligible for redemption for actual cash.<\/p>\n\n\n\n Separating purchased currency from redeemable currency does not change the underlying nature of the activity. The arrangement is a form of gambling that should fall under Arkansas’s existing gambling legislation.<\/p>Tim Griffin, Arkansas Attorney General<\/cite><\/blockquote><\/figure>\n\n\n\n The attorney general has also challenged the way VGW markets its services. The lawsuit points to LuckyLand Slots’ promotional language, which described playing on the platform as completely safe and legal. Griffin argues that such statements create a misleading impression about the legal status of the operator’s business.<\/p>\n\n\n\n Sports betting is permitted in Arkansas, but real-money online casino gaming remains prohibited. Legislative attempts to establish a regulated online casino framework have also failed to advance. In 2025, proposals HB1861 and SB524 sought to introduce an Interactive Gaming Act and criminalise the operation of dual-currency sweepstakes casinos, but both initiatives were shelved.<\/p>\n\n\n <\/div>\n <\/section>\n\n\n\n\n The Arkansas lawsuit comes amid increasing regulatory and legal pressure on sweepstakes operators across the United States. Eight states have introduced legislation banning the sector, including California, Connecticut, Indiana, Maine, Montana, Nevada, New Jersey and New York.<\/p>\n\n\n\n New York provides a particularly relevant precedent for the current case. In September 2026, Attorney General Letitia James secured an $8 million settlement from VGW over the operation of the same brands now named in the Arkansas proceedings.<\/p>\n\n\n\n Griffin has also taken action against prediction market operator Kalshi, filing a separate lawsuit alongside the VGW case. Both actions reflect his broader effort to challenge business models he considers to be operating outside the state’s gambling framework.<\/p>\n\n\n\n The legal proceedings add to VGW’s existing difficulties. Its LuckyLand Slots brand announced a permanent North American closure in September 2026, while the company has also experienced leadership changes. Founder and former CEO Laurence Escalante resigned in July after facing 17 charges related to drug offences and domestic violence. Mats Johnson has been serving as interim leader.<\/p>\n\n\n\n The Arkansas case represents another significant challenge for the sweepstakes casino model, as US authorities continue to question whether dual-currency platforms should be treated as gambling businesses under existing state laws.<\/p>\n\n\n <\/div>\n <\/section>\n\n","protected":false},"excerpt":{"rendered":" Arkansas Attorney General Tim Griffin has filed a lawsuit against sweepstakes gaming operator VGW, accusing the company of violating the state’s Deceptive Trade Practices Act through its dual-currency casino model. The legal action targets VGW’s operations in Arkansas, including its Chumba Casino, LuckyLand Casino and Global Poker brands. Griffin argues that VGW’s position that it […]<\/p>\n","protected":false},"featured_media":70820,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","categories":[68],"class_list":["post-70819","os_news","type-os_news","status-publish","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.livecasinocomparer.com\/us\/wp-json\/wp\/v2\/os_news\/70819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.livecasinocomparer.com\/us\/wp-json\/wp\/v2\/os_news"}],"about":[{"href":"https:\/\/www.livecasinocomparer.com\/us\/wp-json\/wp\/v2\/types\/os_news"}],"replies":[{"embeddable":true,"href":"https:\/\/www.livecasinocomparer.com\/us\/wp-json\/wp\/v2\/comments?post=70819"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.livecasinocomparer.com\/us\/wp-json\/wp\/v2\/media\/70820"}],"wp:attachment":[{"href":"https:\/\/www.livecasinocomparer.com\/us\/wp-json\/wp\/v2\/media?parent=70819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.livecasinocomparer.com\/us\/wp-json\/wp\/v2\/categories?post=70819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Arkansas Challenges the Dual-Currency Model<\/h2>\n\n\n\n
New York Settlement Adds Pressure on VGW<\/h2>\n\n\n\n