Arizona Department of Gaming weighs enforcement against VGW over continued operations

The Arizona Department of Gaming is assessing possible enforcement action against Virtual Gaming Worlds (VGW) over the company's continued operations in the state, according to a department spokesperson. The agency issued a cease-and-desist order against VGW in November 2024, and the company has reportedly continued to operate in Arizona since then.

According to regulators, VGW's sites constituted illegal gambling, and the company was told it might face civil or criminal charges. No such case has materialized. The department's position was that state law was broken by a model in which players purchase virtual currency, wager on games and convert winnings into cash or other prizes. Offering free-to-play versions, the department said, left the character of the activity unchanged.

VGW rejected that reading of the law and maintained that state gambling statutes do not cover sweepstakes platforms. Jessica Roza, a spokesperson for the Department of Gaming, reportedly said the agency's view remains that VGW's activities are illegal and that it is weighing possible enforcement action. She also noted that pursuing a case is very difficult because the company is based overseas.

According to the report, VGW and its associated businesses directed roughly $350,000 toward lobbying Democrat and Republican officials. The report added that the donations are not proof that political contributions swayed the case, yet scrutiny has arisen because no visible measures have been taken against a major sweepstakes operator.

Michael Bennet, who speaks for VGW, said earlier that the firm believed its conduct was in line with applicable legislation. He went on to say that VGW would talk with individual states about how its dual-currency products might be regulated. The report notes, however, that the company has stayed silent about carrying on in Arizona even after the regulator issued its warnings.

According to the report, a number of states have banned sweepstakes casinos outright, and others are pursuing legal action against the sector. VGW's brands include Chumba Casino, Global Poker and Luckyland Slots.