Arkansas is suing the parent company of Chumba Casino and LuckyLand Slots, alleging the company operates an illegal online gambling business through casino-style games that allow players to redeem virtual winnings for cash.
Attorney General Tim Griffin announced the lawsuit against VGW, whose brands also include LuckyLand Casino and Global Poker. The lawsuit alleges violations of the Arkansas Deceptive Trade Practices Act and seeks restitution, penalties, taxes and injunctive relief.
The dispute centers on the company’s use of two virtual currencies: Gold Coins and Sweeps Coins.
According to Griffin, consumers purchase Gold Coins with real money and receive Sweeps Coins as a bonus. Players can then use Sweeps Coins to play casino-style games and redeem their winnings for cash.
VGW maintains that its business does not constitute gambling, according to the attorney general’s announcement. Griffin argues that separating the currency consumers purchase from the currency they can redeem does not exempt the company from Arkansas gambling laws.
“Arkansas’s gambling laws are clear. If you’re providing a means for Arkansans to gamble money within our state, you are subject to the rules and regulations that govern legal gambling,” Griffin said.
Griffin compared the arrangement to internet sweepstakes cafes, where customers purchased internet time and received credits they could use to play games for cash prizes. He said courts have rejected arguments that those customers were purchasing internet access rather than an opportunity to gamble.
“Companies that operate gambling businesses in Arkansas are subject to our gambling laws, plain and simple,” Griffin said.
The attorney general’s announcement did not include a response from VGW to the lawsuit.
SHARE THIS STORY WITH OTHERS:
Discover more from NEA Report
Subscribe to get the latest posts sent to your email.
