Arkansas files lawsuit against VGW over sweepstakes on 4 November 2026

Virtual Gaming Worlds (VGW) was hit with a new legal action in the United States when Arkansas Attorney General Tim Griffin filed suit against the sweepstakes casino operator on 4 November 2026. The complaint, filed in the White County Circuit Court under the Arkansas Deceptive Trade Practices Act, alleges VGW offered unauthorized online gambling through Chumba Casino, Global Poker, LuckyLand Casino and LuckyLand Slots. Arkansas seeks injunctive relief, financial penalties, refunds to customers and payment of taxes.

Allegations and disputed mechanisms

Arkansas' complaint focuses on the dual-currency system used by VGW's sweepstakes casinos. Players purchase Gold Coins for entertainment and receive Sweeps Coins as a bonus, which can be used in casino games and, in some cases, redeemed for cash prizes. VGW maintains that its platforms do not constitute gambling businesses; the state prosecutor alleges otherwise.

“Our review of the company shows that claim to be false,” said Tim Griffin regarding VGW's position.

Arkansas argues that awarding cash prizes through redeemable virtual coins still constitutes gambling under state law. The lawsuit adds to a string of prior legal actions against VGW in multiple states.

Context of prior litigation and settlements

VGW agreed to pay $8 million in September 2026 to resolve a New York investigation into Chumba Casino, Global Poker and LuckyLand Slots. New York regulators had already ordered the group to cease offering redeemable sweepstakes games in June 2025. During 2026, Florida and Kentucky also filed suits against VGW. Earlier regulatory actions in Michigan, Connecticut and Delaware had required the operator to rethink access to its platforms.

Separate suit against Kalshi

The attorney general also filed a complaint against prediction markets platform Kalshi in the Independence County Circuit Court. Griffin alleges Kalshi's event contracts allow Arkansas residents to wager money without the state's required licenses. The action seeks similar relief: injunctions, financial penalties, restitution to customers and collection of taxes.

“Although Kalshi insists its products are not gambling, its actions speak louder than its labels,” Griffin said.

Kalshi asserts its event contracts are regulated federally as commodity products, a point already litigated in other U.S. courts. Arkansas demands that both Kalshi and VGW submit to the restrictions and penalties available under state law.

Procedure and next steps

The lawsuits remain active in the named state courts; Arkansas is pursuing judicial remedies that include financial penalties, refunds to customers and injunctive relief. The case will be added to the docket of litigation VGW faces across several states since 2025 and 2026. For regulatory implications in the industry, see coverage in [regulation](/regulation) and the news update in [news](/news).