VGW, Wow Vegas Face Lawsuits from Louisiana

Louisiana steps up action on sweepstakes casinos by declaring recent lawsuits against VGW and Wow Vegas.

Louisiana’s Department of Revenue is pursuing legal action against Virtual Gaming Worlds and MW Services Limited. They are declaring that these sweepstakes casino providers owe $44 million in unpaid sales taxes, interest, and penalties.

The state has already been battling to stop sweepstakes casinos from operating within its borders, previously filing lawsuits to ban dual-currency casinos and issuing cease-and-desist letters to about a dozen companies, such as Golden Hearts Games and Rolling Riches LTD.

Virtual Gaming Worlds, the operator behind sweepstakes platforms such as Wow Vegas and Chumba Casino, is being sued after filings in the 19th Judicial District Court alleged that the company failed to collect and remit taxes on the sale of virtual currency in Louisiana.

Following an investigation, officials suggested that VGW owes roughly $30.5 million, while MW Services is liable for about $13.6 million, a hefty sum for both operators.

According to Casino Industry News, the state calculated its figures using base tax amounts of $16.7 million for VGW and $7.5 million for MW. When interest and penalties through December 2024 were added, the totals reflected the scale of their operations, translating to approximately $159 million and $71.4 million in revenue generated in Louisiana and East Baton Rouge Parish.

These lawsuits mark the latest step in Louisiana’s ongoing fight against sweepstakes casinos, as the state continues efforts to ban these operators for good. Stay tuned with us for the latest updates on sweepstakes casinos and regulatory actions across the U.S.

References

• Louisiana’s Department of Revenue
• Virtual Gaming Worlds
• MW Services Limited