A Georgia resident has launched a class action lawsuit against Virtual Gaming Worlds (VGW) and its subsidiary companies, claiming they are operating illegal online gambling websites within the state. The lawsuit, initiated by Destiny Kennedy, targets VGW Holdings Limited and its subsidiaries, VGW Malta Limited, VGW Luckyland Inc., and VGW GP Limited, for allegedly violating Georgia’s gambling laws by running internet gambling platforms such as Chumba Casino, Global Poker, and LuckyLand Slots.

VGW Falsely Marketing Online Gaming Platforms as ‘Just for Fun’

Kennedy’s complaint, filed in the Georgia Northern District Court on May 17, 2024, asserts that VGW’s activities breach the Georgia Code stipulations. She argues that the company falsely markets its platforms as “just for fun gameplay,” misleading users into believing that the sites are legal and purely for entertainment, according to information published by Top Class Actions. 

However, Kennedy claims that the real purpose of these sites is to facilitate illegal gambling, as users wager and lose real money through a dual-currency system involving Sweeps Coins and Gold Coins.

Kennedy’s legal action seeks to represent a broader class of Georgia residents who have lost money on VGW’s platforms. Kennedy reports a personal loss of approximately $1,150 from playing games on the implicated websites. The lawsuit demands monetary compensation for these losses and requests a jury trial to address the grievances of all affected consumers in Georgia.

VGW’s model, which includes both free-to-play currency and a purchasable Sweeps Coins system that can be redeemed for cash, is at the core of the allegations. Kennedy argues that while the sites allow for gameplay without real money, the primary goal is to encourage users to buy Sweeps Coins, thus disguising the gambling aspect under a veneer of legality. 

Kennedy Opted Out of VGW’s Arbitration Agreement

The case also highlights Kennedy’s proactive stance in opting out of VGW’s arbitration agreement, which typically redirects disputes to private arbitration rather than court trials. This move distinguishes her case from similar lawsuits that have been compelled to arbitration due to the terms agreed upon by users.

VGW has a history of legal challenges in the United States, having previously settled a lawsuit in Kentucky for over $11 million concerning its LuckyLand brand. The outcome of the current lawsuit in Georgia could have significant implications for VGW’s operations in states where online gambling remains heavily regulated or prohibited.

Last year, VGW also had to withdraw from the Michigan market, discontinuing its social gaming brands Chumba Casino, Global Poker, and Luckyland Slots, after facing regulatory pressure. 

As the Georgia case proceeds, VGW has yet to respond to the allegations. 

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Roblox, the rapidly expanding virtual gaming platform, is facing a class-action lawsuit in the Northern California District Court over allegations that it facilitates child gambling. The lawsuit contends that the company has failed to implement adequate measures to prevent children from accessing external gambling sites through its application.

Legal Action Unveils Unauthorized Youth Access to Gambling on Roblox Platform

Roblox, known for creating a virtual universe, has become one of the leading gaming platforms globally. The legal action asserts that some youngsters gained unauthorized access to funds on gambling platforms while using the Roblox application. 

Despite the platform’s community standards explicitly prohibiting gambling activities, the lawsuit claims that Roblox permits third-party gambling websites to operate through its interface, allowing users to place bets using Robux, as reported by KTVU.

Natalia Garcia from Common Sense Media, a nonprofit organization that provides information and education about various media, has expressed concerns, mentioning that it is not a new problem, unfortunately. She remarked that over the years, there have been numerous concerns regarding the over-commercialization of platforms like Roblox.

The alleged process involves users purchasing Robux, the in-game currency, before venturing into external virtual casinos. Connecting their Robux wallet to the gambling site enables users to convert their Robux credits into the site’s currency. Attorneys argue that, when users incur losses, Roblox imposes a 30% fee on the gambling site for converting credits into cash.

Psychiatrist and Advocacy Group Urge Roblox to Take Responsibility for User Safety

Legal representatives argue that Roblox, given its meticulous tracking of every Robux exchange on its platform, should be aware of users engaging in gambling activities. 

Medical experts have also raised concerns about the safety implications of metaverses like Roblox, emphasizing their addictive nature and potential harm.

Dr. Anna Lembke, a Professor of Psychiatry at Stanford, highlights the addictive nature of digital devices and the potential harm of gambling, especially for developing brains. Lembke emphasizes the responsibility of corporations to establish boundaries and safeguards, contending that strict parental supervision alone is not sufficient.

Common Sense Media recommends restricting Roblox access to children over the age of 13 and urges parents to exercise close supervision. 

Dr. Lembke has voiced support for this position, asserting that she does not believe it is fair to place the entire responsibility on parents. She believes that the corporations responsible for creating virtual spaces for children should establish boundaries and guardrails.

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The operator of sports prediction games for entertainment, Fliff, is facing a class action lawsuit in California after a complaint seeking $5 million in damages was filed with the US District Court for the Central District of California on June 6.

Seeking Compensation for the Losses

The plaintiff, Bishoy Neshim, claims he lost over $7,000 while using the Fliff app and filed a complaint alleging Fliff is operating as a sportsbook. Neshim seeks compensation for his losses and for the losses of those similarly affected by Fliff’s alleged illegal sports betting operation. The lawsuit also seeks an injunction to stop Fliff from violating the federal Wire Act by offering its contests across state lines.

Sportsbooks are not permitted in California after voters decided against the legalization of sports wagering in November 2022, defeating the proposition that would have allowed for retail sports betting at tribal casinos and horse racing tracks, as well as the proposition that would have opened the state to mobile and online wagering.

The lawsuit states that “Fliff facilitates the ability for California residents to make online sports wagers to win real money without any approvals, regulations, oversight, or taxing,” claiming “to be a free-to-play operator of sweepstakes with the chance to play ‘sports prediction games’ for entertainment” while “in the real world, alleged sports prediction games are nothing more than online sports gambling.”

The lawsuit further elaborates on the model utilized by Fliff through which the operator uses a medium, “Fliff cash,” to replace real money but in practice, Fliff cash “has a dollar-for-dollar equivalence to actual money and that can be withdrawn and wired directly to the users’ bank account.”

The plaintiff states that Fliff does not satisfy the state’s definition of “sweepstakes” as its prizes are not distributed either by lot or by chance, and instead uses the sweepstakes model to entice customers with free “Fliff Coins” and then bait them into depositing US dollars and converting them into Fliff cash.

Regulatory Probe in Ohio

Based in Pennsylvania and with a development hub in Bulgaria, the operator that is currently available in 45 US states was one of five operators which fell under regulatory scrutiny in Ohio, following an investigation launched by the Ohio Casino Control Commission (OCCC) in May.

The OCCC addressed issues that these sweepstakes operators offer markets that mimic traditional prop-type bets, while player wins and losses are dependent on their point totals resembling a spread.

Following the complaint in California, the court is expected to hear arguments from both the plaintiff and defendant in the coming weeks and months. If the court finds Fliff guilty of unlawful bookmaking and wagering under Californian law, the operator will face a felony charge.

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A California man has brought a class action lawsuit against Nevada-based Rancho Mesquite Casinos for failing “to maintain adequate data security”. 

The company operates a number of gaming venues in the United States, including Rising Stars Sports Ranch Resort in Mesquite, The Brook in New Hampshire, and the Eureka casinos in Nevada.

According to the lawsuit, the operator failed to encrypt the personal information of customers and employees leading to “the theft of personal information” of more than 200,000 people during a cyber attack in November 2022.

The hackers were able to access personal data, including the full names, driving license details and Social Security numbers of clients and employees.

However, the update on the lawsuit reveals additional sensitive data including financial account numbers and debit and credit card numbers may have been involved in the breach.

In a letter on November 9, 2022, Rancho Mesquite wrote to clients saying, “Eureka experienced a cyber security incident during which some of our systems were encrypted by an unauthorized actor. Upon discovering the incident, we immediately took steps to secure our systems, began an investigation, and a cyber security firm was engaged to assist.

“Although the investigation is ongoing, we identified certain data that the unauthorized actor accessed during the incident. We began a review of the data and identified that the data included some of your information. Specifically, the data included your name and Social Security number.”

Some customers were more affected than others in the leaks.

The plaintiff, William Houghton, seeks a redress and restitution for the harm that had been caused to him and others as a result of Eureka’s failure “to maintain adequate data security”.

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A Southern Nevada casino is now facing a class action lawsuit for allegedly leaving its systems vulnerable and exposing the personal information of hundreds of thousands of customers and employees.

Lack of Timely Notice

Initiated by a California resident who claims his computer was part of a ransomware attack due to the casino security breach, the class action lawsuit accuses the company operating the Rising Star Sports Ranch Resort in Mesquite and The Brook in Seabrook, New Hampshire, of failing to provide the affected with timely and adequate notice, Las Vegas-based 8 News Now reported.

Rancho Mesquite Casino was the victim of a cyberattack in November 2022 during which a hacker accessed sensitive information of more than 200,000 casino customers and company employees, including their full names and social security numbers but it was in December when it sent notices to its clients about the breach.

In a letter sent to those whose personal data was exposed over the course of the several days of the hacker attack and enclosed in the court filing, the company explained that there was “a cybersecurity incident” on November 9 affecting Eureka during which parts of the casino company’s systems “were encrypted by an unauthorized actor.” Eureka Security is an Israeli-based cloud data security provider.

“Upon discovering the incident, we immediately took steps to secure our systems, began an investigation, and a cybersecurity firm was engaged to assist,” wrote the casino company to the affected parties, telling them that “although the investigation is ongoing, we identified certain data that the unauthorized actor accessed during the incident.”

“We began a review of the data and identified that the data included some of your information,” the letter concluded, pointing out that the data exposed to the hacker attack included names and social security numbers. The company also opened a dedicated phone line and offered one year of credit monitoring for those affected.

Negligence and Breach of Contract

The lawsuit accuses the casino operator of negligence, breach of contract and other counts, asking a jury to award monetary damages to the class members for the company’s failure to encrypt their sensitive information, and order the operator to strengthen its cybersecurity defenses.

“Simply put, plaintiff and class members now face substantial risk of out-of-pocket fraud losses such as loans opened in their names, medical services billed in their names, tax return fraud, utility bills opened in their names, credit card fraud, and similar identity theft,” claim the class action lawsuit documents.

The casino operator was repeatedly contacted by the reporting media with a request for comments but did not respond.

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According to the court documents, the company involved is Rancho Mesquite Casino. and the breach has reportedly affected two of its locations.

Class-action Lawsuit Against Eureka Casino

According to the data breach notification on the Maine Attorney General’s website 229,299 people were affected by the breach. This includes information belonging to employees, as well as customers. The personally identifiable information (PII) contained names, social security numbers, and financial information, including account/card numbers and security codes, according to the document.

The incident took place in November 2022, and Rancho Mesquite Casino (DBA Eureka Casino) notified the people affected. According to an 8NN report, it affected two of the company’s locations. Eureka operates hotels and casinos in Mesquite and Las Vegas, Nevada, and Seabrook, New Hampshire. The Maine AG office’s website didn’t explicitly specify which locations were breached.

According to the 8NN report, the letter sent to notify those whose PII was accessed by the hackers explained that the company took steps immediately to secure its systems. However, the attack took place in November 2022, and notifications were sent out in December 2022. This led to the company receiving further scrutiny over the delay in this instance.

The originating plaintiff in the class-action lawsuit is reportedly a California resident, who is claiming to be a victim of a ransomware attack, resulting from the security breach at Eureka Casino. The lawsuit was filed in a Las Vegas court, and the company was accused of negligence and failure to encrypt the sensitive information it was storing in its systems.

Cybersecurity Becoming a Prominent Topic

Data breaches are not a new occurrence and cybercriminals have noticed the world is moving increasingly toward digitizing everything. There is no shortage of targets and the gambling industry participants aren’t an exception to this. BetMGM was another example of this in late December of last year when it also suffered a cyber-attack.

The company confirmed it had launched an investigation at the tail end of December 2022. It acknowledged that patron data was impacted by the security incident. Again, social security numbers, dates of birth, and other details were accessed by the hackers. It’s standard practice for companies to collaborate with security companies in such cases.

There are also those trying to get ahead of the curve and the increasing number of industry participants collaborating with cyber-security experts and organizations is proof of that. Napoleon Sports & Casino joining the newly-established cybersecurity group of the European Gaming and Betting Association (EGBA) EGBA is one such example.

As companies learn to use and store an increasing amount of data to provide better experiences and more refined products, the need for enhancing cybersecurity also increases. PPI opens the doors for many frauds and in some cases – even identity theft, so companies are investing more time and resources into keeping their informational assets and customers safe.

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