Class Action Says Operators of Chumba Casino, LuckyLand Slots, Global Poker Violate Georgia Gambling Law

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A proposed class action lawsuit claims the online casino websites operated by Australia-based VGW Holdings Limited and three subsidiaries constitute illegal gambling under Georgia law.

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The 42-page lawsuit takes issue with Chumba Casino, LuckyLand Slots and Global Poker—online casino platforms operated by co-defendants VGW Malta Limited, VGW LuckyLand Inc. and VGW GP Limited, respectively. Although the companies purport that their operations are legal and promote “just for fun gameplay,” the websites are, in fact, unlawful gambling platforms where Georgia consumers can wager and lose real money, the complaint alleges.

According to the case, VGW entices consumers to play online casino games on ChumbaCasino.com, LuckyLandSlots.com and GlobalPoker.com by providing new users with a certain amount of free virtual “gold coins” with which they can place bets. Once these free coins are exhausted, the consumer is prompted to purchase more if they wish to continue playing, the complaint says.

Along with a user’s purchase of gold coins, which can only be used on the websites and have no redeemable monetary value, VGW also provides an additional allotment of “sweeps coins,” the filing explains. These special coins may be redeemed for cash to the consumer’s bank account or digital wallet, with one sweeps coin the equivalent to approximately $1, the lawsuit relays.

The suit contends that “[t]his is where the Georgia citizens are truly lured into gambling” because, as the case tells it, consumers can—and are encouraged to—play the same casino games using sweeps coins (SC) that they can with gold coins (GC).

“The significant difference is that when a consumer plays the casino games with GC, a consumer or player can only win or lose GC, whose value exists solely in allowing the consumers to play the games and continue entertainment without needing to pay more money to purchase GC,” the complaint describes. “However, winnings of SC can be redeemed for dollars in consumers’ bank accounts, digital wallets, gift cards etc.”

Per the filing, VGW attempts to “camouflage” its allegedly illegal operations by misrepresenting that the websites are “social casino[s]” offering merely “sweepstakes promotions.” However, the lawsuit charges that the sale of virtual gold coins is “nothing more than a pretext” for buying and gambling with coins of cash value, in what amounts to the “exact type of operation” prohibited under Georgia law.

“VGW pioneered this migration of ‘sweepstakes casinos’ to the world wide web and since 2013, VGW has knowingly, intentionally, willfully, and illegally won billions of dollars from its gambling operations, while also lying to the public and proclaiming that VGW’s operations are legal,” the suit claims.

The lawsuit looks to represent anyone in Georgia who suffered monetary losses on ChumbaCasino.com, LuckyLandSlots.com or GlobalPoker.com during the applicable statute of limitations period.

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