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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Operators offering sports betting and gambling services across the globe have strict rules when it comes to data protection. The access of senior-level employees is monitored while the protection of intellectual property remains an important priority for developers within the gambling sector.

Now, a new report reveals that an Aristocrat employee is facing legal action over allegedly downloading more than 6,800 files from its services. As announced by the Associated Press, Dinh Toan Tran, a game designer with Aristocrat, is in hot water after the leading gaming operator filed a lawsuit, claiming he downloaded thousands of files.

The alleged incident dates back to December. In its lawsuit, the leading pokies developer claims Tran downloaded more than 6,800 files. With the lawsuit, Aristocrat seeks to recover the files.

During a court hearing last week, the company secured a search order from the Federal Court. Consequently, a property where Tran allegedly resided was searched. During the search, electronic devices such as tablets, laptops and external storage devices were seized.

The Court ordered Tran to provide the details needed to log in while at the same time asking him to reveal his whereabouts. Moreover, Tran was ordered not to delete or discard any documents, files or other intellectual property that may belong to the company. Experts are currently analyzing the information uncovered on the devices that were seized during the search that happened at a property located in western Sydney.

Analysis of the Information from the Seized Devices Continues

Ken Brotherson, is the lawyer representing the employee. He confirmed that his client wasn’t present when the search warrants were executed.

Federal Court Justice Yaseen Shariff explained that Aristocrat had a right to determine whether it was wrong or right about its suspicion of the downloaded files. He explained: “It seems to me everything has been done extremely professionally.”

It is yet to be confirmed if Tran indeed obtained any company files. Currently, it remains unclear what the essence of those files might be. Still, John Hennessy SC, Aristocrat’s barrister, informed the court on Thursday that a specific USB storage device is “the focus of the investigation.” Investigation and analysis of the files obtained during the searches continue.

The legal action comes after in December, Aristocrat announced the launch of its 3rd NFL-themed game, Overtime Cash. The launch reaffirmed the company’s successful relationship with the NFL and further expanded the portfolio of games for fans of the sport.

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True to his word, Senator Joseph Addabbo introduced a new iGaming bill in New York. The measure, dubbed Senate Bill 8185 was referred to the Racing, Gaming and Wagering Committee yesterday and seeks to authorize interactive gaming and interactive lottery gaming in The Empire State.

Addabbo, who’s a staunch supporter of the launch of online casino gaming in the state, also tried to get the vertical legalized in 2023. His previous bill, S4856, also sought to get digital gambling legalized. However, a major difference is that the previous bill did not include online lottery.

In any case, S4856 failed to gain traction and never yielded results. However, this did not stop Addabbo from promoting the launch of online gambling in New York.

Under S8185, New York’s seven land-based casinos, racetracks and tribes will be eligible to apply for online gambling licenses. The potential bidding process will also handle three additional licenses to parties that submit a program that gets the commission’s approval.

As mentioned, the main difference from last year’s bill is that S8185 also includes the legalization of online lottery. Per the proposal, New York would allow players to access joint, multi-jurisdiction and out-of-state lotteries online. Ticket sales would be overseen by the New York State Division of Lottery.

Addabbo Says New York Would Benefit from the Legalization

Applicants will have to pay a one-time license fee to secure their license. Existing operators, for example, will be required to pay $2 million for a license. Independent contractors, however, will need to pay $10 million.

In addition, potential applicants should prepare to face significant taxes as S8185 envisions a 30.5% gross gaming revenue tax. Mirroring New York betting’s controversial (and according to some operators unsustainable) tax, Addabbo plans to set high taxation rates for operators. As per the bill, $11 million of this money will be distributed by the Commission and the Office of Addiction Services and Supports for problem gambling-related services.

Under the current version of the bill, only players above the age of 21 will be allowed to play online.

A few days ago, the Senator commented on the matter, saying that the legislation would greatly benefit New York, significantly alleviating its rising financial pressures. He said:

Other states are doing it and taking our money. And if I hear my analysts in the industry correctly, we lose about a billion dollars a year. How long can we sit on the sidelines?

Senator Addabbo

New York is currently America’s largest betting market, constantly posting record-breaking figures. Addabbo and other online gambling supporters hope to replicate this success and generate more tax revenue for the state.

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In most states across the US, lottery winners cannot remain anonymous. Even if the winnings are in the millions, most states require the winners to be identified, which can sometimes cause trouble for the lucky few. Maine is one of the states that requires winners to be identified. However, the winner of one of the largest Mega Millions jackpots in the state was able to collect their winnings through a limited liability company called LaKoma Island Investments earlier this year. This effectively enabled the person to remain anonymous and collect the grand prize.

Now, a new report released by the Portland Press Herald suggests that the lucky winner is willing to go to great lengths to protect his identity. Reportedly, the person who won the $1.35 billion Mega Millions jackpot filed a lawsuit against the mother of his child with the US District Court in Portland. With scarce details on the topic, the lawsuit identifies the man only by a pseudonym and confirms that he currently resides in Maine. Similarly, the mother of his child was also identified with a pseudonym, but it was confirmed that she lives in Dracut, Massachusetts.

The new lawsuit alleges that the woman breached a non-disclosure agreement that was signed with the winner of the jackpot. This agreement reportedly dates to February this year and was signed between the duo before the man claimed the Mega Millions jackpot. The winner of the jackpot alleges in his lawsuit that the mother of his child shared “protected subject matter” with two persons she was not allowed to under the non-disclosure agreement. The defendant is given time until December 6, 2023, to submit a response.

The Lottery Winner Seeks Injunction, $100K in Damages

The lucky winner of the $1.35 billion jackpot beat incredible odds of 1 in more than 300 million to win the grand prize. As with other big sums, the winner can select a lump cash payment or annual installment payments for the full sum. The winner from Maine selected a lump cash sum payment, taking a staggering $723.6 million. It’s important to note that lottery winnings across the US are taxable so this sum is before the applicable taxes.

In his case against the mother of his child, the lottery winner seeks injunctive relief from a judge. Moreover, the winner is after some $100,000 in damages from the defendant.

Undoubtedly, the lawsuit reaffirms the lottery winner’s dedication to concealing his identity. The legal claim explains that the non-disclosure agreement signed between the winner and the defendant was to address “the unique safety, security, and privacy concerns associated with winning the lottery.” The legal document confirmed that the winner wanted to protect his identity so he could avoid irreparable harm to himself and his assets.

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Genting Malaysia, one of the world’s largest gaming companies, has announced its intention to raise MYR500 million (US$113m) by issuing medium-term notes through its subsidiary company, Genting Malaysia Capital Bhd.

The company explained in a filing to Bursa Malaysia that the notes are being issued through three tranches. The first tranche involves MYR250 million over five years with a 5.07 percent interest rate; the second is for MYR150 million at 5.35 percent interest; and the third is for MYR100 million at 5.52 percent.

Proceeds from the issuance will be used for a variety of purposes, including operating expenses, capital expenditure, investment, refinancing, working capital requirements, and general funding requirements. This will include funding the development and redevelopment of Genting Malaysia’s properties and resorts, including those located in Genting Highlands, Pahang.

This move comes after Genting Malaysia announced the sale of its 15.47-acre parcel of land in Miami for US$1.23 billion. It is expected that sum will be used to fund the expansion of the company’s New York casino if it is granted a full license.

Resorts World Casino New York City has a good chance of snagging one of the most coveted casino gaming licenses in the United States. The move to raise funds through the issuance of medium-term notes is part of Genting Malaysia’s ongoing strategy to expand and improve its integrated resorts around the world.

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The broadcaster behind Bally Sports regional sports networks (RSN), Diamond Sports Group (DSG) announced Tuesday it is in the process of finalizing a Restructuring Support Agreement (RSA) with companies that hold the majority of its debt, as well as Sinclair Broadcast Group. This is a strategic move that ultimately seeks to eliminate a debt of more than $8 billion that is outstanding for the company.

However, in order to implement the RSA, DSG confirmed that it filed for Chapter 11 protection with the US Bankruptcy Court within the Southern District of Texas. Ultimately, the company’s plan is to strengthen its balance sheet by implementing the restructuring and using the proceedings. At the same time, DSG plans to continue the broadcasting of high-quality sports content in the US.

The latest announcement reveals that DSG plans to keep Bally Sports operational during the complex Chapter 11 process. Moreover, DSG said that it currently has some $425 million in cash which can help with the restructuring and boost its business.

“The RSA Diamond is finalizing with creditors and Sinclair provides that Diamond will separate its business from Sinclair and become a standalone company,“

reads a statement released by Diamond Sports Group

The RSA Represents a Strategic Move

David Preschlack, DSG’s CEO, explained: “The DSG Board of Managers has been evaluating strategic opportunities with the support of its advisors and in coordination with creditors to position the Company for long-term success and has determined that the best path forward for the Company and its stakeholders is to restructure through a Chapter 11 process.”

The CEO added that the company is engaging in this process in an effort to strengthen its balance sheet, reset its capital structure and eliminate some $8 billion in debt. Preschlack added: “The financial flexibility attained through this restructuring will allow DSG to evolve our business while continuing to provide exceptional live sports productions for our fans.”

According to Preschlack, DSG will not stop broadcasting games that ultimately help connect sports teams and leagues with their fans. Finally, he said that the company hopes to be revitalized by the restructuring and become even stronger than before.

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