Arkansas has become the latest state to take VGW to court. Attorney General Tim Griffin filed a civil suit on November 4 in White County Circuit Court, alleging that the company’s sweepstakes casino platforms amount to illegal gambling under state law.
The complaint targets seven VGW-related companies and four brands: Chumba Casino, LuckyLand Casino, LuckyLand Slots and Global Poker. The allegations have not been decided by a court.
At the center of the case is VGW’s dual-currency model. Gold Coins can be purchased but have no cash value, while Sweeps Coins can’t be bought but can be redeemed for prizes. VGW has long argued that this split means it does not offer gambling.
Griffin rejects that argument. In announcing the suit, he said VGW rests its claim on a distinction between two virtual currencies, and that “any reasonable person would call that gambling.” The complaint says VGW holds no Arkansas casino license, and it also alleges violations of the Arkansas Deceptive Trade Practices Act, pointing to how the company marketed its games as legal, safe and social.
The filing also puts a number on the business. According to the complaint, VGW reported about $66 million in taxable Arkansas sales between July 2025 and June 2026, and paid roughly $6 million in sales and use tax on that total.
Griffin’s office says the relief it wants includes taxes, alongside restitution and penalties.
Griffin wants a court to stop the alleged gambling operations and order restitution for Arkansas players. The suit also asks for civil penalties, attorney fees and the costs of the state’s investigation, and it requests a jury trial.
Arkansas permits land-based casinos and online sports betting, but it has not authorized online casino games.
On the same day, Griffin filed a separate suit against prediction market operator Kalshi in Independence County Circuit Court, making the argument that it, too, offers unlicensed gambling.
This is the third state attorney general suit against VGW this year. Kentucky Attorney General Russell Coleman sued in June, and Florida Attorney General James Uthmeier filed suits in August against VGW and Stake.us. In September, VGW reached an $8 million settlement with the New York attorney general’s office after a cease-and-desist letter led it to stop offering coin gambling in that state.
None of the suits has produced a ruling that the sweepstakes model is illegal, and a settlement doesn’t set precedent. Each state is also relying on its own gambling statutes, so what holds in one court may not carry over to another.
The next filings will show how VGW responds, including whether it moves to dismiss or to push the case toward arbitration or another venue. The company has said it does not operate a gambling business. No response to the Arkansas complaint was found at the time of reporting.
Arkansas is a small market, but the case adds to a growing list of states testing whether existing gambling laws reach sweepstakes casinos without new legislation. Whether other attorneys general follow, and how courts treat the first rulings, will shape how the model fares in 2027.
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