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Delaware is the latest US state to declare war on sweepstakes casinos.
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The Division of Gaming Enforcement released the following statement:
"An investigation by the Delaware Division of Gaming Enforcement (DGE) into VGW Luckyland, Inc. – a subsidiary of the Australian-based VGW Holdings Ltd. – revealed that VGW Luckyland, Inc. was operating illegal online gaming".
VGW Luckyland, Inc. operates some of the largest sweepstakes casinos including Chumba Casino, Global Poker and Luckyland Slots. Chumba Casino is known for its commercials featuring Hollywood celebrity and Wheel of Fortune host Ryan Seacrest.
"Delaware officials concluded the VGW misrepresented its services as promotional sweepstakes while enabling individuals to purchase coins for casino-style games, leading to potential cash winnings."
Regulators cite violation of the Delaware Constitution, the Delaware Penal Code and the Delware Competitiveness Act of 2012.
"In addition to compromising consumer protection, illegal sites result in significant tax revenue losses for the state. Websites claiming to offer legal games of chance should be viewed with suspicion. It is important to remember that just because you can download an app, visit the website, and play the games, it does not mean it is a legitimate and legal gaming platform. Delaware residents are urged to exercise caution and only engage with online gaming platforms at authorized Delaware Casinos."
It was not immediately clear as of Wednesday evening if Chumba Casino, Luckyland Slots and Global Poker had exited the state or intend to fight this decision.
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