The Delaware Division of Gaming Enforcement has finally been successful in ousting VGW from operating in the state. The Delaware DGE actually issued a cease and desist order in 2023, with no result until this month. But it was only during legal proceedings conducted last August of 2024 that VGW was made aware that the C&D order was sent. Now, as of the 2nd of April, Delaware residents can no longer access and play on the sites, which include Chumba, Global Poker, and Luckyland.

After years of scrutiny and regulatory ambiguity, the Delaware Division of Gaming Enforcement has officially forced Virtual Gaming Worlds (VGW) to cease operations in the state. The agency announced in a press release that VGW's sweepstakes-based gaming platforms - including Luckyland Slots, Chumba Casino, and Global Poker - are considered illegal online casinos under Delaware law.

Effective April 2, residents of Delaware are no longer permitted to access or play on any VGW-operated sites. The decision marks the culmination of a prolonged investigation and legal tug-of-war, though the timeline behind the enforcement reveals a more complex story than the press release suggests.

A cease and desist long ignored

While the DDGE's statement gave the impression of recent enforcement, VGW was first issued a cease and desist order more than two years ago. According to prior confirmation from the DDGE, the regulatory agency initially sent the cease and desist on the 23rd of February, 2023. However, VGW did not acknowledge or act on the order until August of 2024, when it came to light during an unrelated legal proceeding.

This delay in enforcement - over a year between the issuance of the notice and VGW's formal recognition of it - has raised questions about communication and compliance practices between the operator and regulatory bodies. The DDGE did not disclose the reason for the enforcement delay in its latest announcement.

VGW has long maintained a strong presence in Delaware, both operationally and legally. The company's own terms and conditions mandate that all legal disputes be handled through the US District Court for the District of Delaware, making the state a focal point for ongoing and past litigation against the operator.

Numerous lawsuits have been filed in Delaware targeting VGW's business model, which operates using a sweepstakes system rather than traditional online casino mechanics. Critics argue that the distinction is largely semantic and that VGW's games function as de facto online gambling, skirting the regulatory frameworks in place in many states.

VGW's patchwork US presence

VGW has now officially withdrawn from Delaware, joining a list of states that includes Idaho, Connecticut, Montana, Michigan, Washington, and Nevada. Despite these exits, VGW remains active in several other jurisdictions, even as competitors adopt a more conservative stance on state-by-state legality.

For instance, some sweepstakes gaming companies have exited all states where online casinos are legalized and regulated - including Pennsylvania and New Jersey - opting to avoid regulatory complications altogether. A group of such operators have also recently exited New York, citing increased regulatory pressure.

Yet VGW has opted to pursue its own course. Unlike many of its competitors, it has not joined the Social and Promotional Games Association or SPGA, a trade group aiming to promote transparency and establish voluntary compliance standards for sweepstakes and promotional gaming operators. VGW's absence from the SPGA demonstrates its unique, and at times contentious, position in the evolving online gaming landscape in the US.

The company has already updated its platform terms and conditions to reflect the Delaware ban, preventing users with Delaware IP addresses or account affiliations from accessing their products. It remains unclear whether VGW will face further legal consequences for its extended period of non-compliance or whether additional states will follow Delaware's lead in formally challenging the legality of its operations.

The DDGE's enforcement action sends a clear message to online gaming operators that Delaware is prepared to take firm action against platforms operating outside of its regulatory framework.