Chumba Casino, owned by VGW Malta Ltd., is facing legal challenges over allegations related to its business practices, which several plaintiffs claim misrepresent the casino’s nature and fairness. A class-action lawsuit in Kentucky alleges that Chumba Casino and its affiliate, Luckyland Slots, engaged in unlawful gambling practices by selling virtual currency while branding their platform as a “sweepstakes,” which sidesteps traditional gambling regulations. The lead plaintiff, Amy Jo Armstead, claims she lost over $7,000 on the platform, and other plaintiffs have come forward with similar complaints of high losses and barriers to withdrawing winnings.
In response, VGW Malta recently settled for $11.75 million to resolve these complaints, though it denied any wrongdoing. This settlement covers Kentucky residents who spent at least $5 within a 24-hour period on either Chumba Casino or Luckyland Slots from March 2017 to March 2022. Those eligible can receive a portion of the settlement, with final payments depending on the total amount spent and the number of claimants who come forward.
While VGW Malta continues to deny the allegations, it agreed to settle to avoid extended litigation costs. Nonetheless, Chumba Casino and similar social gaming platforms remain under scrutiny for their “sweepstakes” models, which allow players to purchase virtual currencies to play for real prizes in jurisdictions where direct online gambling is restricted.
This case highlights the complexities around social casinos that use virtual currencies and demonstrates a growing push for consumer protection in online gaming, particularly in the U.S., where social casino regulations are still evolving. For those who may have been affected, participating in the class action offers a path to reclaim some losses incurred on these platforms
VGW Malta Ltd is a licensed subsidiary of Virtual Gaming Worlds (VGW), a prominent provider of online social gaming platforms. Founded in Malta, the company is licensed and regulated by the Malta Gaming Authority, ensuring that its gaming operations meet industry standards for fairness and security. VGW Malta Ltd operates some popular gaming brands, such as Chumba Casino and Global Poker, which offer social casino experiences rather than traditional gambling, using virtual currency and sweepstakes models. This setup allows users to enjoy casino-style games in compliance with regional regulations while promoting a safe, social, and interactive gaming environment for its players.
