Another State, Another Lawsuit: Arkansas Takes on Sweepstakes Casino

^{Arkansas AG Tim Griffin is leading the charge against VGW (Photo: Arkansas Attorney General’s Office)}

Arkansas has filed a lawsuit against sweepstakes casino operator VGW, alleging that the company offered illegal gambling through its online platforms. However, the lawsuit reveals more than another state challenging the sweepstakes casino business model.

According to the complaint filed Nov. 4, VGW reported approximately $66 million in taxable Arkansas sales between July 2025 and June 2026. The state also alleges that VGW allowed players ages 18 to 20 to participate in casino-style gambling until February 2025, despite Arkansas's minimum gambling age being 21.

Arkansas Attorney General Tim Griffin is seeking restitution, civil penalties, taxes, and an injunction against VGW. The lawsuit targets the company's sweepstakes operations, including Chumba Casino, LuckyLand Casino, Global Poker, and the now-closed LuckyLand Slots.

VGW Reported $66M in Arkansas Sales in One Year

According to the lawsuit, VGW reported approximately $66 million in taxable sales between July 2025 and June 2026. The company also paid roughly $6 million in Arkansas sales and use taxes during that period. That’s an average of $5.5 million in taxable sales per month.

These figures offer a rare look at the financial scale of a major sweepstakes casino operator within a single state. The complaint doesn't break down how much each casino contributed to total sales. Also, the $66 million figure doesn't reveal how much Arkansas players won, how much they redeemed, or how much profit VGW generated.

The lawsuit also alleges that VGW operated in the state between 2022 and June 2025 without paying Arkansas sales and use taxes. It did not reveal how much in sales the company generated during that period.

Arkansas Challenges VGW's Dual-Currency Casino Model

The lawsuit also targets the dual-currency business model used by VGW's sweepstakes casinos. VGW maintains that its platforms operate as sweepstakes rather than a traditional gambling business. Arkansas rejects that assertion.

In his Nov. 4 announcement, Griffin argued that consumers pay for the opportunity to gamble, regardless of how the virtual currencies are labeled. The complaint also questions whether free methods of obtaining Sweeps Coins distinguish VGW's platforms from gambling operations.

The complaint contrasts the immediate availability of promotional Sweeps Coins through purchases with the more involved alternative method of entry. Arkansas argues that the two methods don't change the underlying nature of the transactions. The state further compares VGW's operations with internet sweepstakes cafés, which offered promotional gaming credits alongside purchases of other products.

Arkansas Alleges VGW Allowed Players Under 21 to Gamble

Another serious allegation in the lawsuit is that VGW permitted residents ages 18 to 20 to open accounts and play casino-style games until February 2025. VGW raised its minimum age requirement to 21 in February 2025. However, Arkansas argues that the company had already allowed younger adults to participate in activities the state considers gambling.

Sweepstakes casinos generally operate under different age requirements than licensed casinos, with many permitting players to register at 18. Arkansas argues that VGW shouldn't have been able to bypass the state's age restrictions simply by describing its games as sweepstakes instead of gambling. The complaint doesn't disclose how many players ages 18 to 20 participated, or how much they spent.

What Happens Next for VGW in Arkansas?

Arkansas filed the lawsuit under the Arkansas Deceptive Trade Practices Act, alleging that VGW misrepresented its products as legal, free social gaming while operating an unlawful gambling business. The state is asking the court to impose civil penalties, order restitution, recover applicable taxes, and block the sites from operating in the state. The complaint seeks penalties of up to $10,000 per violation and recovery of money allegedly obtained through unlawful transactions.

For Arkansas players, the immediate question is whether the lawsuit will impact access to VGW's sweepstakes casinos. VGW has faced legal and regulatory challenges in other states, but continues to operate multiple popular sweepstakes properties. However, with the growing number of lawsuits against the company, one has to wonder how long it will be before the legal pressure forces VGW to make major changes to its US operations.