Sweepstake casino operator VGW has departed the state of Connecticut after opting not to fight a cease and desist letter from the state’s consumer protection group.
Confirmation of the decision appears to have come as Founder of Wallach Legal, Daniel Wallach, drew attention to changes in the terms and conditions of the group’s Chumba Casino and Luckyland slots operations.
They added Connecticut to a list of states that weren’t included in the group’s offering, alongside Idaho, Michigan, Washington and Montana.
The decision comes following allegations by the state that VGW was operating an unlicensed casino offering in the state.
A cease and desist letter issued earlier in the year stated: “VGW is hereby ordered to immediately cease and desist offering its games and services to Connecticut customers.
“Failure to comply may result in additional action including, but not limited to, civil penalties under CUTPA and/or criminal penalties under Conn. Gen. Stat. 53-278b and 53-278d.”
This has since been followed by an increase in pressure on the vertical with the AGA urging the need for increased regulation of the sector.
The group made the point that sweepstake casinos are similar to that of regular casinos. However, in most circumstances these firms operate under a far less intense regulatory environment.
According to the AGA, sweepstakes avoid regulations and licensing through a dual-currency system, however they do still ‘look and play like an online casino’. It warned that ‘the ‘opaque nature’ could also significantly elevate the risk of bad actors having an opportunity for illegal activity.
The AGA stated: “The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market through investment and tax contributions. These sweepstakes-based operators have weak (if any) responsible gaming protocols and few, if any, self-exclusion processes.”This sentiment was rebuked by Laurence Escalante, the owner of VGW who emphasised the strength of the group’s financial crime controls.
