Global Poker Parent VGW Sued in Massachusetts Class Action

The Allegations Against VGW in Massachusetts

The most recent complaint, filed by attorney Joel D. Smith of the Boston-based Smith Krivoshey PC, alleges that VGW’s platforms operate as real-money gambling sites under the pretense of sweepstakes poker. The plaintiff, identified only as “M.M.,” accuses VGW of violations including unjust enrichment, violations of Massachusetts gambling laws, and deceptive practices, including the deliberate avoidance of the term “gambling” on its websites.

While the lawsuit is currently focused on Chumba Casino and Luckyland Slots, it leaves the door open for Global Poker to be added as a defendant if the class action expands. Like its sister sites, Global Poker employs a sweeps-based dual-currency model, which the plaintiff’s legal team argues is an attempt to bypass state and federal gambling laws.

A Long History of Targeting the U.S. Market

Originally founded in 2011, VGW has grown into a multi-billion-dollar company under the leadership of Australian entrepreneur Laurence Escalante. The company operates some of the largest sweeps-based platforms globally, but this lawsuit isn’t the first time VGW’s practices have come under scrutiny.

According to the complaint, VGW has long been aware that its model blurs the line between legal sweepstakes and gambling. A financial prospectus created for potential investors in 2015 and appended to the Massachusetts lawsuit describes the company’s offerings as targeting the “real-money gaming market” in the United States. The document also likens VGW’s approach to the Internet café sweepstakes model, which has been deemed illegal in several states.

Defining the Sweeps-Based Model

At the heart of the lawsuit is VGW’s use of “sweeps coins,” which players can redeem for cash. The plaintiff’s legal team argues that this mechanism transforms VGW’s sites into de facto gambling platforms. The lawsuit contrasts this with legitimate sweepstakes, such as McDonald’s Monopoly promotion, which are designed as short-term marketing efforts rather than the primary mechanism for customer engagement.

The complaint alleges that VGW’s use of the sweepstakes model is what would be defined as a misnomer, claiming that it serves as a pretext for gambling rather than a legitimate promotional tool. This distinction could prove critical, since Massachusetts law explicitly prohibits using sweepstakes as a cover for gambling.

Implications for Global Poker and the Industry

While Global Poker isn’t directly named in the current lawsuit, the outcome of this case could have far-reaching consequences for VGW and other sweeps-based operators. Massachusetts is one of several states scrutinizing VGW’s practices, and at least a dozen lawsuits have been filed against the company in courts across the U.S. The legal pressure has already led VGW to restrict access to its platforms in several states, including Connecticut, Michigan, and Nevada.