Estimated reading time: 8 minutes.
Key facts
- Case: State of Arkansas v. VGW Holdings U.S. Inc. and related companies, Case No. 73CV-26-1743, White County Circuit Court, filed November 4, 2026.
- Who sued: Arkansas Attorney General Tim Griffin, with outside counsel from the law firms Baron & Budd and Bursor & Fisher.
- Platforms named: Chumba Casino, LuckyLand Casino, LuckyLand Slots and Global Poker, all run by companies in the VGW group.
- What is alleged: VGW's "sweepstakes casinos" are illegal gambling dressed up as free promotions, and VGW misled Arkansans by calling them "100% legal."
- Claims: Violations of the Arkansas Deceptive Trade Practices Act and unjust enrichment.
- Status: This is a state enforcement lawsuit, not a class action. No court has ruled on the claims, and there is no claim form or refund program.
In this article
- What Arkansas is accusing VGW of
- Who VGW is
- How Gold Coins and Sweeps Coins work
- Why the state calls it gambling
- The legality and age claims
- The legal claims and what Arkansas wants
- Other states and sweepstakes casinos
- What remains unproven
- What happens next
- Frequently asked questions
Arkansas has sued VGW, the company behind the popular online sweepstakes casino Chumba Casino, accusing it of running illegal online gambling in the state while telling players its games are free and legal. The lawsuit, filed November 4, 2026, seeks restitution for Arkansas consumers along with civil penalties, unpaid taxes and a court order stopping the practices.
The case matters to Arkansans who have bought coin packages on Chumba Casino, LuckyLand Casino, LuckyLand Slots or Global Poker, because the state is asking for money to be returned to them. It is also one of the more detailed state attacks yet on the sweepstakes model used across the online casino industry. Every description of VGW's conduct below is an allegation from the state's complaint or the attorney general's statement.
What Arkansas is accusing VGW of
The complaint says VGW's sites let people play slot machines, blackjack, poker and other casino games for money that can be cashed out. "While masquerading as a free sweepstakes, defendants accepted money from Arkansans, provided them the means to gamble, and paid out winnings in cash and other prizes," the complaint says, as quoted by the Arkansas Advocate.
Griffin framed the case around a simple test. "VGW provides Arkansans the opportunity to play various popular online games, and it claims that it is not operating a gambling business," he said in a news release. "But our review of the company shows that claim to be false."
The state says VGW never obtained a license or paid the gaming taxes required of the state's licensed casinos, and that it misled consumers about whether its products were legal.
Who VGW is
VGW is a gaming group headquartered in Perth, Australia. The complaint names ten related companies: three Delaware corporations based in Boulder, Colorado, two companies headquartered in Perth, and five companies in Malta. According to the complaint, VGW Malta operates Chumba Casino, VGW GP Ltd operates Global Poker and Beels Limited operates LuckyLand Casino.
The complaint says LuckyLand Slots stopped operating in the United States in September 2026, but did business in Arkansas before then. It also says VGW reportedly earned $2.8 billion in revenue from its sweepstakes casino operations in 2024, and that its chief executive became the youngest billionaire in Australia's history.
According to the complaint, VGW reported about $66 million in taxable sales in Arkansas between July 2025 and June 2026 and paid about $6 million in sales and use tax. The state says it believes VGW operated in Arkansas from 2022 through mid-2025 without paying those taxes.
No refund program exists This is a lawsuit brought by the state, not a class action or settlement. There is no claim form, and no money is available to VGW players at this stage.
How Gold Coins and Sweeps Coins work
VGW's platforms use two virtual currencies. Gold Coins are sold for real money and can only be used for play. They cannot be cashed out. Sweeps Coins come "free" as a bonus when a player buys Gold Coins, and Sweeps Coins won through gameplay can be redeemed for cash, at roughly one dollar per coin.
The complaint gives examples of how the bundles work. A player who pays $20 can receive 20.50 Sweeps Coins, which the state says means the player pays $20 and receives $20.50 in redeemable value. Larger packages come with proportionally more Sweeps Coins.
The state says VGW then controls how quickly players can cash out. Chumba Casino requires at least 100 redeemable Sweeps Coins before a player can request cash, and other VGW platforms require at least 50, according to the complaint. It also says Sweeps Coins at Chumba Casino expire 60 days after a player's last login, while Gold Coins never expire.
Watch your balances According to the complaint, unused Sweeps Coins at Chumba Casino can expire after 60 days without a login. Purchased Gold Coins do not expire.
Why the state calls it gambling
Gambling generally involves paying something of value for a chance to win a prize. VGW's position, as the attorney general describes it, is that players pay only for worthless Gold Coins and receive Sweeps Coins for free, so no one pays to gamble.
Arkansas rejects that. "Any reasonable person would call that gambling," Griffin said. The complaint argues that Sweeps Coins, not Gold Coins, are what drive purchases, and that the free entry options are hard to use in practice. Under Chumba Casino's 2023 rules, the complaint says, a player who wanted Sweeps Coins without buying anything had to generate a request code, handwrite details on a 4-by-6-inch card, mail each request in its own stamped envelope and follow the instructions exactly, all for five Sweeps Coins.
The state compares VGW to the internet sweepstakes cafes of past decades, where customers bought internet time, got "free" game credits and played for cash prizes. It cites a 2001 Arkansas Supreme Court decision, Pre-Paid Solutions v. City of Little Rock, which held that a phone-card machine offering cash prizes was an illegal gambling device even though free plays were available. The complaint also says VGW was familiar with the cafe model, pointing to an industry report included in a 2016 prospectus tied to VGW's effort to raise capital.
Allegations, not findings The claims that VGW's games are illegal gambling and that it misled players are the state's allegations. VGW has not been found liable for anything in this case.
The legality and age claims
The deceptive practices claims focus on what VGW told players. According to the complaint, LuckyLand Slots told players that "playing with us is 100% safe and 100% legal," LuckyLand Casino's help pages answered "Yes" to whether it was legal, and Global Poker promoted itself as a site "where you can legally redeem prizes."
The state argues that these statements are false in Arkansas and that they led people to believe they were using a lawful, regulated product.
The complaint also raises age limits. Arkansas restricts regulated casino wagering to people 21 and older. The state says VGW let people as young as 18 open accounts, buy Gold Coin packages and play for Sweeps Coins, and did not follow the 21-and-over rule in Arkansas until February 2025.
The legal claims and what Arkansas wants
The complaint brings claims under the Arkansas Deceptive Trade Practices Act, including its bans on false representations and on obtaining money under false pretenses. It also claims VGW was unjustly enriched, noting that Arkansas law treats gambling contracts as void.
The state asks the court to:
- Declare that VGW violated the deceptive practices law and order it to stop.
- Order restitution to Arkansas consumers and award damages.
- Impose civil penalties for each violation.
- Order VGW to pay the gambling taxes the state says it owes.
- Hold the VGW companies jointly responsible.
- Grant a writ of prejudgment attachment against VGW's assets, a step that can freeze property while a case is pending.
- Award attorneys' fees and costs, and hold a jury trial.
Parts of the public version of the complaint are redacted. These are requests. No amount has been awarded.
Other states and sweepstakes casinos
Arkansas is not the first state to take on VGW. The Arkansas Advocate reported that VGW paid $8 million to New York earlier this year after the New York attorney general sent it a cease-and-desist letter. Arkansas filed a separate lawsuit the same day against the prediction market Kalshi, also accusing it of running illegal gambling.
VGW did not immediately respond to the Arkansas Advocate's request for comment on the lawsuit.
What remains unproven
VGW has not responded in court. It is expected to argue that its sweepstakes model is lawful because players can get Sweeps Coins without paying. A court has not decided whether VGW's games are gambling under Arkansas law, whether its legality statements were deceptive or whether any Arkansan is owed money.
What happens next
VGW must be served and will then respond, likely by answering the complaint or asking the court to dismiss it. If the state wins or reaches a settlement, any restitution would be handled through the court, and the attorney general's office would likely announce how affected consumers could receive it.
For other cases open to consumers now, see our list of class action cases you can join. This article is for information only and is not legal advice.
Frequently asked questions
Why is Arkansas suing Chumba Casino's owner?
Arkansas says VGW runs illegal online gambling through Chumba Casino and its other sites and misled players by calling its games legal, in violation of the Arkansas Deceptive Trade Practices Act.
Is the VGW lawsuit a class action?
No. It is an enforcement action brought by the Arkansas attorney general. Players are not class members, but the state is asking the court to order restitution to Arkansas consumers.
Can I get my money back from Chumba Casino?
Not right now. There is no settlement or claim process. Money would only become available if the court orders restitution or the state reaches a settlement with VGW.
What are Sweeps Coins?
Sweeps Coins are a virtual currency VGW gives away with Gold Coin purchases. Sweeps Coins won in games can be redeemed for cash at about one dollar each, according to the complaint.
Which sites are covered by the lawsuit?
The complaint covers Chumba Casino, LuckyLand Casino, LuckyLand Slots and Global Poker. LuckyLand Slots stopped operating in the United States in September 2026, the complaint says.
Where was the VGW lawsuit filed?
The case was filed November 4, 2026, in White County Circuit Court in Arkansas as Case No. 73CV-26-1743.
