Summary
- VGW Holdings celebrates a significant victory in Montana as the court dismisses all challenges against the company.
- Courts have often hesitated to take a definitive stance on issues surrounding the murky waters of gambling regulation because the legal definitions remain unclear.
- Across the United States, action against sweepstakes is gaining momentum as trade groups recognize the urgent need for a more modern regulatory framework.
VGW Holdings has been navigating an intense wave of pressure across the United States, where the tide of regulation and legislation has been turning against social and sweepstakes gaming. Yet, in the midst of this challenging landscape, VGW has emerged victorious from a legal battle in Montana. Earlier this year, the state had demanded that VGW leave, but now, a lawsuit against the social and sweepstakes gaming operator has been decisively dismissed.
Lawsuit against VGW falls flat in Montana as courts are hesitant
On August 19, the tides turned in favor of VGW when the US District Court of Montana agreed to their call to dismiss the case, effectively putting an end to the proceedings. State resident Michael Lighter and other plaintiffs had made a determined bid to show that VGW's activities violated both state and federal laws. However, their arguments failed to convince the court. Despite seeking damages and injunctive relief, Lighter's group faced a powerful setback as VGW celebrated a significant victory that could deter similar legal challenges in the future. The court also ordered the company to halt operations not only in Montana but across other states as well. This triumph for VGW is notable, though hardly unexpected given the courts' hesitance to get entangled in the evolving debate between traditional and alternative gaming platforms. Historically rooted in sweepstakes casinos, these platforms have recently started to face scrutiny. Undeterred by mounting pressures, VGW has also made strides by entering a partnership with Kletsel Dehe, a tribal gaming partner, in California. This move signals the company’s deft navigation through this challenging landscape.
One win in Montana does not stop the anti-sweepstakes onslaught in the US
Yet, challenges have arisen along the way. Recently, New Jersey Governor Phil Murphy signed a law that effectively bans all social and sweepstakes casinos. This move is being mirrored in states like New York and Massachusetts, where some have already seen similar legislation pass this year. Groups like the Social Gaming Leadership Alliance are urging businesses, regulators, and lawmakers to work together more closely. They recognize the urgent need to update legal regulations and adapt the tax code to fit this evolving landscape.
