Virtual Gaming Worlds (VGW) Holdings, an Australia-based company behind Chumba Casino, LuckyLand Slots, and Global Poker, recently won a venue battle lawsuit to have its Florida case moved to Delaware. This case pertains to VGW’s online sweepstakes casinos.
Plaintiff Eric A. Knapp Is Suing VGW, Payment Processors Fidelity National Information Services, Worldpay Inc.
Plaintiff Eric A. Knapp is suing VGW and payment processors Fidelity National Information Services and Worldpay Inc. As part of the case, Knapp alleges that VGW violates Florida’s gambling laws by offering players a chance to win real money prizes at online sweepstakes casinos.
In response, VGW successfully argued that it should be transferred to the District of Delaware, citing forum selection clauses in its terms and conditions. Knapp and other members of the class action agreed to those T&Cs upon signup with VGW.
Furthermore, Knapp claimed that “the defendants fraudulently induced [the] plaintiff into agreeing to the terms.” However, Judge Carlos Mendoza for the Middle District of Florida stated, “There is no indication that the forum selection and choice of law clauses were formed by fraud.”
Worldpay Inc. Was Dismissed From The Same Case In 2020 After Becoming Worldpay LLC
Although the court case was filed in Florida and will now move to Delaware, this case is still ongoing, and the latest ruling doesn’t mean VGW is off the hook just yet.
Payment processor Worldpay Inc. was dismissed from the same case after the judge observed it folded into Worldpay LLC in 2020. But that was five years ago.
Worldpay LLC along with Fidelity National Information Services, another VGW payment partner, will still have to defend themselves in the Diamond State.
VGW Faces Other Lawsuits
In addition to VGW’s latest case, the company is facing another lawsuit in Connecticut, and it was also named in a RICO class action case filed in Manhattan Federal Court involving Google and Apple.
Sweepstakes casinos continue to operate in legal gray area. Arbitration clauses and jurisdictional arguments make it easy for sweepstakes operators to delay and/or get court cases dismissed.
Even then, lawmakers in various states are still taking action against sweeps operators.
Last month, Mississippi’s Senate passed SB 2510 in a 44-1 vote, making sweepstakes gambling a felony with penalties of up to $100,000 in fines or 10 years in prison.
Maryland lawmakers also introduced SB 860 and HB 1140, which would allow regulators to deny gaming licenses to sweepstakes operators.