Virtual Gaming Worlds (VGW) Holdings announced Friday that it voluntarily withdrew its services from Delaware despite disagreeing with the Division of Gaming Enforcement (DGE).
In February 2023, the DGE sent a cease-and-desist letter to VGW Luckyland, Inc., a subsidiary of Australia-based VGW Holdings. Just over two years later, the platform is complying with the notice and leaving the Old Line State.
VGW Leaving Delaware After Second Cease-And-Desist Letter
Earlier this week, the DGE issued a second cease-and-desist order to VGW for “misrepresenting its services as a promotional sweepstakes while enabling players to purchase coins for casino-style games, leading to potential cash winnings.”
VGW issued this response in a news release Friday:
“In relation to a statement issued by the Delaware Department of Gaming Enforcement (DGE) on April 7, 2025, 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.
“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.”
VGW Ordered To Cease Operations In Eight States
VGW Luckyland offers a platform where users can purchase virtual coins and play casino-style games to win real cash prizes. Although VGW operates under a promotional sweepstakes system, the DGE determined that the platform still allows players to engage in real-money gambling.
Because VGW offered real-money games to Delaware residents without a license, the platform violated the state’s constitution, the Delaware Penal Code, and the Delaware Gaming Competitiveness Act of 2012.
Delaware becomes the eighth state to halt VGW operations, joining Connecticut, Idaho, Maryland, Michigan, Montana, Nevada, and Washington.
VGW also added in its response that the company “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.”
Sweepstakes casinos offer a chance to participate in online casino games and potentially win prizes. Instead of real money, they use their own form of currency, typically known as Gold Coins (GC) and Sweeps Coins (SC).
Coins can be redeemed for prizes if the player completes playthrough requirements.