VGW Faces Sweeps Class Action in California as It Winds Down Canadian Operations

Virtual Gaming Worlds (VGW), the parent company of social sweepstakes platforms Chumba Casino, LuckyLand Slots, and Global Poker, along with its founder, Laurance Escalante, and several other defendants, is facing a new national class action lawsuit filed in California. At the same time, VGW announced preparations to shut down its Canadian business.

The twin developments topped a busy week for VGW, which includes a landmark partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria tribe, a federally recognized Indian tribe in California.

These events highlight the rapidly shifting landscape for one of the largest sweepstakes casino operators and the sector as a whole.

California Class Action Targets VGW & Partners

On August 20, 2025, plaintiffs filed Brown et al. v. VGW Holdings US Inc. et al. in the US District Court for the Northern District of California.

The case, assigned to Judge Laurel Beeler, names a long list of defendants, including VGW entities, payment processors, data aggregators, and even a prominent slots influencer.

The suit was initially filed in Montana, but the plaintiffs voluntarily dismissed it earlier this month and moved it to California.

According to US gaming attorney Daniel Wallach, the complaint spans 129 pages with 415 paragraphs and includes seven class definitions.
Plaintiffs argue that California is the proper venue because all defendants maintain a physical presence in the state and conduct business with VGW there.

Several VGW employees, including US General Manager Derek Brinkman, are based in San Francisco. Notably, founder Escalante, who’s set to take complete control of the company, is the only named employee not based in California.

The suit differs from many other class actions against sweepstakes casinos. It’s filed on behalf of customers’ spouses who share bank accounts but never agreed to VGW’s terms.

It aims to avoid arbitration clauses that have derailed many similar lawsuits in the past. Plaintiffs seek damages under state loss-recovery statutes that allow secondary parties to recoup gambling losses.

The lawsuit is seeking damages, citing loss recovery acts under certain states’ law, which allow secondary parties to recoup gambling losses.

The complaint also seeks to create sub-classes of VGW users from several states, including Georgia, Illinois, Kentucky, Massachusetts, Mississippi, Missouri, New Jersey, New Mexico, Ohio, South Carolina, Tennessee, Wisconsin, and the District of Columbia.

Trustly, Brian Christopher, Yodlee, and Jumio Also Targeted

The complaint emphasizes that VGW does not operate in isolation:

“VGW’s illegal gambling enterprise is not, and cannot be, operated by VGW alone. The illegal enterprise is only possible with the aid and assistance of multiple partners. VGW operates much or all of its operations in California and has partnered with certain California-based individuals and companies, which provide essential gaming services to the VGW Casinos. These California partners include: (1) Jumio Corporation; (2) Yodlee, Inc.; (3) Trustly, Inc.; and (4) Mr. Brian Christopher Misfud.”

• Jumio Corporation: ID verification provider headquartered in Sunnyvale, California.
• Yodlee, Inc.: Financial data and payments firm based in Redwood City, California.
• Trustly, Inc.: Payments company with offices in San Carlos, California.
• Brian Christopher (Misfud): A slots influencer known for promoting real-money and social casinos, named as a defendant for his role in allegedly marketing VGW platforms.

The inclusion of promoters and technological providers highlights an attempt to broaden liability beyond VGW, specifically to the sweepstakes casino ecosystem.

That approach mirrors California Assembly Bill 831, a proposal currently under consideration to ban sweepstakes casinos. The proposal has gained broad opposition due to provisions that include targeting operators, suppliers, payment processors, and celebrity endorsers.

Opponents argue the language, “as written, could have unintended consequences for lawful promotional practices without offering clear consumer protections.”

VGW Pulls Out of Canada

While it faces over a dozen lawsuits and multiple state exits in the US, VGW is also exiting Canada. The company informed players that phase operations of its platforms will be over in the next couple of months:

• August 28, 2025: Last day for Canadian players to purchase Gold Coins. Still, they can continue using available Gold Coins and Sweeps Coins in the balance.
• September 25, 2025: Gameplay access ends. Redemptions will still be available.
• October 23, 2025: Final redemptions processed before complete shutdown.

In its customer notice shared by Wallach again, VGW said:

“After careful consideration, we’ve made a strategic commercial decision guided by our business priorities. This allows us to focus our resources and investment in a way that supports the ongoing success of the business.”

The company acknowledged the disappointment of long-time Canadian players, writing:

“We understand this is an adjustment after many years and our valued Canadian players may be disappointed. This decision wasn’t taken lightly and our focus is on ensuring players are fully informed about the changes, and that this transition is as smooth as possible.”

Future Outlook

The combination of the growing list of lawsuits and multiple market exits underscores the pressure on VGW and sweepstakes casinos.

The company says it’s exiting Canada to focus on US operations, but even there, its footprint is shrinking. A year ago, the list of ineligible states was just four: Idaho, Michigan, Montana, and Washington. Now, it has grown to 11, plus Canada.

Class-action lawsuits so far have failed to force operators out, as multiple cases have gone in the operators’ favor, including three times for VGW in Georgia.

Still, the newest lawsuit takes a different approach. If successful, it could pave the way for more exits for VGW and other sweepstakes operators.