Stop Services in Connecticut
In February, VGW received a cease-and-desist letter from the Connecticut Department of Consumer Protection. The department accused the operator of offering unlicensed gambling, which violated state law and fair-trade practices.
A spokesperson for VGW told SBC Americas that the company has decided to discontinue offering its products in Connecticut. The company carefully considered and analyzed its services and state laws before reaching this conclusion.
The spokesperson further stated that the decision was not made lightly, and the company continues to monitor developments in jurisdictions across the United States and engage with the authorities in Connecticut.
The company disagrees with the Connecticut Department of Consumer Protection’s position and believes that social games are a lawful activity in the state. However, VGW will remove services to keep the best interests of stakeholders at the forefront of operations.
VGW will continue to offer its free-to-play model in other areas of the United States. The company is confident in its compliance with local laws and regulations in the state where it operates.
Continual Legal Battles
VGW has faced legal troubles in the past as other states have tried to stop the operator from offering social gaming services. Late last year, the Michigan Gaming Control Board ordered the company to cease services in the state, which added yet another state to the small list of restricted areas. VGW is also banned in Idaho, Montana, and Washington. It has also faced a class action lawsuit in Georgia earlier this year.
The actions against the company occur at a time when sweepstakes gaming is facing strict scrutiny. The American Gaming Association has jumped on the bandwagon, stating that a crackdown needs to occur regarding sweepstakes services.
The AGA wants state attorney generals to investigate sweepstakes operators to ensure they comply with local laws. Real-money casinos are seeing the rise of sweepstakes gaming and seem a bit threatened by the popularity of sites like Chumba, Wow Vegas, and High 5.
Social casino sites have tried to fight back regarding their legitimacy by creating the Social and Promotional Gaming Association, but efforts are still being made to shut down the freeplay formats in select states.
