Fair Gaming Advocates (FGA) has filed a lawsuit in the Commonwealth of Kentucky against Virtual Gaming Worlds (VGW).
The lawsuit alleges that VGW’s sweepstakes casino is an unlicensed and illegal gambling enterprise within the Commonwealth of Kentucky.
VGW’s Previous Settlement and Continued Operations
In 2022, VGW agreed to a $11.75 million settlement after violating Kentucky’s gambling laws. Despite this large settlement, VGW has brazenly chooses to continue operating its illegal gambling business in Kentucky.
Kentucky’s Gambling Loss Recovery Law and Its Purpose
FGA is suing VGW under Kentucky Revised Statute 372.040, a law designed to punish illegal gambling businesses by forcing them to pay out three times the amount of money they have unlawfully taken from Kentucky citizens. The purpose of this law is to ensure that illegal gambling operations cannot profit from their misconduct, which removes any financial incentive to continue breaking the law.
This same law was famously used in a lawsuit against PokerStars for operating an illegal online poker business in the Commonwealth of Kentucky. That case initially resulted in a judgment exceeding $1 billion before ultimately being settled for $300 million in 2021. Now, FGA is using this same law to hold VGW accountable for its illegal gambling business in Kentucky.
Potential Liabilities for VGW
FGA’s lawsuit against VGW represents significant liabilities for VGW and its shareholders. FGA projects that VGW faces a potential judgment amounting to multiples of tens of millions of dollars, or even more, for operating an illegal gambling business in Kentucky.
About Fair Gaming Advocates
At Fair Gaming Advocates we promote integrity and fairness in gaming. We achieve this through education, guidance, and legal action to protect consumers from deceptive and illegal gambling businesses.
About VGW and Laurence Escalante
VGW is an illegal gambling operation that pioneered the illegal online sweepstakes casino business model. VGW operates Chumba Casino, LuckyLand Slots, and Global Poker; VGW is the world’s largest operator of illegal online sweepstakes casinos. Laurence Escalante, an ostentatious and controversial gambling billionaire, founded VGW in 2010 and has illegally earned billions of dollars since its inception.