VGW Holdings has been subjected to unprecedented pressure across the United States at a time when the regulatory and legislative mood has been shifting against the social and sweepstakes gaming sectors.
However, the company has won a court battle in Montana, a state that had asked VGW to leave earlier this year, resulting in a case brought by plaintiffs against the social and sweepstakes gaming operator being dismissed.
Lawsuit against VGW falls flat in Montana as courts are hesitant
On August 19, the US District Court of the District of Montana sided with VGW and granted its request to end proceedings, bringing the case to a halt.
The plaintiffs, including state resident Michael Lighter, sought to prove that VGW’s operations in the state constituted a violation of both state and federal laws, but the argument fell flat in front of the court.
While Lighter and others sought damages as well as injunctive relief, VGW has been able to score an important win that could curb future similar challenges. The company has been asked to cease operations not just in Montana, but also in other states, too.
The win, although important, is not immediately surprising as courts have been loath to meddle in the matter of traditional versus alternative gaming platforms. Sweepstakes casinos are established in a historical precedent, and they have not been openly challenged until recently.
What is more, VGW has just entered a partnership in California where it has teamed up with Kletsel Dehe, a tribal gaming partner, indicating that the company, despite all the mounting pressure it faces, is still navigating this perilous landscape skillfully.
One win in Montana does not stop the anti-sweepstakes onslaught in the US
However, there have been setbacks, too. Most recently, New Jersey Gov. Phil Murphy signed a bill into law, effectively banning all social and sweepstakes casinos. Similar moves are underway in New York and, most recently, Massachusetts, with some states succeeding already this year.
Organizations, such as the Social Gaming Leadership Alliance, have called for closer collaboration between businesses, regulators, and lawmakers, acknowledging the need to modernize the legal framework for regulating the vertical and actualizing the tax code.
