Arizona regulators still consider Virtual Gaming Worlds to be operating illegally in the state and are assessing possible enforcement action, nearly two years after ordering the Australian-owned sweepstakes-casino operator to stop. The Arizona Department of Gaming’s position, confirmed by spokesperson Jessica Roza on Oct. 19, has not yet resulted in civil or criminal charges against VGW.
The 2024 cease-and-desist letter directed VGW to halt all online and other gambling activity in Arizona. It named Chumba Casino, Global Poker and LuckyLand Slots, and alleged felony promotion of gambling, illegal control of an enterprise and money laundering. Douglas Jensen, the department’s chief law-enforcement officer, signed the order.
VGW was told that its Arizona operations amounted to a felony enterprise. The regulator’s Dec. 10, 2024 reply maintained that the company’s activities promoted unregulated, unlicensed and illegal gambling, rejecting VGW’s position that its products fell outside the state’s gambling laws.
VGW operates casino-themed games using Gold Coins and Sweeps Coins, the latter of which can be purchased and redeemed for cash prizes. The company has argued that customers need not spend money to win, pointing to a postal method for obtaining free Sweeps Coins. Its 18-page response to the state likened the model to a McDonald’s Happy Meal sweepstakes.
The company said it remained confident it complied with applicable laws and regulations, and wanted to engage with states on regulatory structures for what it calls Social Plus games. An aide to Attorney General Kris Mayes said VGW was on the office’s radar, but its overseas headquarters created jurisdictional and resource challenges for state prosecutors. Governor Katie Hobbs’s office declined to comment on active investigations.
The department did not publicize its allegations against VGW, despite issuing releases on actions involving other operators. Tucson.com reported that the agency sent cease-and-desist letters to several other Arizona sweepstakes operators in 2025 without naming VGW, while the Arizona Republic reported that Hobbs and Mayes had delayed legal action against the company as regulators moved quickly against rivals.
Political contributions by VGW have added to scrutiny of the unresolved matter. The company gave more than $200,000 to groups supporting Hobbs and Mayes, while also contributing $140,000 to Republican efforts to retain control of the Arizona House and Senate and $10,000 to a group supporting Republican attorney-general candidate Warren Petersen. The available reporting does not establish a connection between those donations and the lack of charges.
VGW Luckyland has faced regulatory or legislative pushback in about a dozen other states. New York’s attorney general settled claims in September that VGW’s online casinos constituted illegal gambling. Florida also sued VGW and Stake over their sweepstakes casinos in August, as we reported at the time.
VGW had said it would permanently close LuckyLand Slots by Sept. 14 while continuing Chumba Casino, LuckyLand Casino and Global Poker.
