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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.

The Delaware Division of Gaming Enforcement has just issued a cease and desist order against VGW Luckyland, Inc. for operating an illegal online gaming platform. The officials from Delaware reportedly found that VGW Luckyland had misrepresented its offerings as promotional sweepstakes when, in fact, it enabled players to purchase coins for its casino games.

The Delaware Division of Gaming Enforcement, in coordination with the Delaware State Lottery, has issued a cease-and-desist order against VGW Luckyland, Inc., an affiliate of VGW Holdings Ltd. from Australia, following an extensive investigation into illegal online gambling activity targeting Delaware residents.

The DGE determined that VGW Luckyland had been misrepresenting its services as promotional sweepstakes while, in reality, offering casino-style games that allowed players to purchase virtual coins and win real-money prizes. This practice, the investigation concluded, constitutes illegal online gaming under Delaware law.

Effective on the 2nd of April, 2025, residents of Delaware are no longer permitted to access or participate in any of VGW Luckyland's online gaming platforms. According to state officials, the operation violated multiple legal frameworks, including the Delaware Penal Code, the Delaware Constitution, and the Delaware Gaming Competitiveness Act of 2012.

This case demonstrates the growing concern over unlicensed online gaming platforms posing as legal sweepstakes, said a spokesperson for the Delaware Lottery. Such operations are not only illegal but pose significant risks to consumers.

Public safety and consumer protection at risk

Delaware officials are raising red flags over the broader implications of unauthorized and unregulated gaming platforms. According to the DGE, these operations are particularly dangerous as they often lack basic consumer protection measures. Players engaging with such websites may face issues like difficulty withdrawing funds, lack of customer support, and susceptibility to cybercrime.

Unregulated gaming sites present a wide range of dangers, including identity theft, fraud, and the exposure of sensitive personal and financial information, the DGE emphasized in a public statement. Without oversight, these platforms are a prime target for cybercriminals.

The DGE further warned that some illegal gaming sites go as far as mimicking the branding of legitimate Delaware casinos. These deceptive tactics include the use of similar-sounding names, matching color schemes and logos, and even registering lookalike URLs. Such mimicry can easily mislead consumers into thinking they are playing on a secure, regulated platform.

Economic impact and public awareness

In addition to putting consumers at risk, illegal gaming platforms rob the state of substantial tax revenue. Regulated gaming operations contribute to Delaware's economy, funding public services and ensuring a safe, monitored environment for players. Unlicensed operators, by contrast, sidestep these responsibilities while exploiting local players.

Officials are urging Delaware residents to remain vigilant and only participate in online gaming through authorized channels. Just because a website or app is easily accessible does not mean it is legal. Residents are advised to verify the legitimacy of gaming platforms through the official Delaware Lottery website at https://www.delottery.com.

About the Delaware Division of Gaming Enforcement

The Delaware Division of Gaming Enforcement was established under House Bill Number 310 during the 145th General Assembly. Operating under the supervision of Homeland Security and the Secretary of Safety, the DGE holds exclusive jurisdiction over criminal gaming offenses occurring within licensed video lottery facilities and those relating to the operations of the Delaware Lottery.

The Division plays a key role in maintaining public trust by investigating the background and qualifications of gaming license applicants, enforcing gaming laws, and supporting the Delaware Lottery in regulating lottery and gaming activities. This enforcement action reaffirms Delaware's commitment to legal, responsible, and transparent gaming practices, the DGE concluded. Their top priority is to protect residents and maintain the integrity of the state's gaming environment.

In the latest stance by several states against online sweepstakes casino gaming, the newest state to join the bandwagon is Louisiana. In proposed bill SB 181, Senator Adam Bass sought to prohibit the operation and promotion of online sweepstakes gaming. The bill states that any offerings deemed similar to casino-style gaming, sports betting, or lottery gaming would amount to illegal gambling.

Louisiana has become the latest battleground in the growing crackdown on online sweepstakes casinos, as lawmakers weigh legislation that would effectively outlaw such platforms across the state.

A bill prohibiting sweepstakes casino gaming

On April 4, State Senator Adam Bass introduced Senate Bill 181 (SB 181), a proposal aimed at banning the operation, promotion, and facilitation of online sweepstakes gaming - a model that has flourished in legal grey areas across the US. The bill is currently awaiting review in the Committee on Judiciary B.

SB 181 targets what it terms "gambling by computer," broadly defined as any game, contest, or promotion conducted online that employs a dual-currency payment system - commonly seen in sweepstakes casinos - and offers players the opportunity to win prizes, cash, or any cash equivalent. This includes simulations of casino-style games, lotteries, or sports betting, regardless of whether users are required to make a purchase to participate.

The strict terms of the legislation

The legislation would impose strict penalties for violations. Individuals found guilty of operating or promoting such activities could face a minimum fine of $10,000 per circumstance and as much as five years in prison. Additionally, violators would be considered in breach of Louisiana's Deceptive and Unfair Trade Practices Act, exposing them to civil lawsuits and further penalties.

Notably, the bill doesn't only target operators of sweepstakes platforms. It extends liability to a wide range of associated parties - including game developers, software providers, geolocation services, affiliate marketers, advertisers, and media outlets - essentially anyone who plays a role in enabling or promoting sweepstakes-style gambling.

The Department of Public Safety and Corrections and the Louisiana Gaming Control Board would be granted authority to investigate potential infractions and enforce the law through mechanisms such as cease-and-desist letters.

Louisiana joins the ever-growing bandwagon

Louisiana's move follows a wave of similar actions across the country. In 2025 alone, New Jersey, Maryland, New York, Connecticut, and Illinois have introduced bills targeting online sweepstakes casinos. In Mississippi, a high-profile bill passed both chambers before stalling over last-minute amendments related to sports betting.

While lawmakers argue these measures are necessary to protect consumers from unregulated and potentially predatory practices, opponents claim the bills go too far and could harm legitimate businesses.

The Social and Promotional Games Association swiftly condemned SB 181 in a strongly worded statement, arguing the proposal "recklessly misclassifies legitimate sweepstakes as illegal gambling."

The SPGA stated, "This misguided legislation endangers lawful businesses and sends a chilling message to investors, jeopardising Louisiana's burgeoning tech sector. For decades, companies - from fast-food chains to app developers - have utilised sweepstakes as legal promotional tools. Even more troubling, SB 181's overly broad definitions could unintentionally criminalize loyalty and rewards programs run by some of the most respected brands in the country."

Sweepstakes platforms' free to play model are not a threat

The SPGA also noted that social sweepstakes platforms typically operate on a free-to-play basis, emphasizing that most users engage with the platforms without spending money. "The vast majority of users never spend a dime," the association added, asserting that such games do not pose a competitive threat to Louisiana's regulated real-money gaming sector.

As lawmakers in Louisiana continue to deliberate SB 181, the outcome could significantly influence how other states proceed with similar legislation. The debate highlights the broader national struggle to define the boundary between innovative digital promotions and unlicensed gambling - a line that continues to blur in the rapidly evolving online gaming landscape.