Delaware State regulators have taken action to stop VGW Luckyland Inc. from operating in Delaware after they discovered illegal online gambling activity.
VGW Luckyland Banned in Delaware for Running Illegal Slot Games
The Delaware Division of Gaming Enforcement (DGE) led an investigation that revealed the company — a US branch of Australian-based VGW Holdings Ltd. — was running online slot-style games while claiming to be a sweepstakes platform. These games seemed to offer promotional fun, but players could buy virtual coins to play and win real money, which violates several state laws.
The DGE found that VGW Luckyland’s business model broke the Delaware Constitution, the state’s penal code, and the Delaware Gaming Competitiveness Act of 2012. This led to a cease-and-desist order, which banned all Delaware residents from accessing the platform starting April 2.
State officials emphasized that the enforcement action aims to protect residents from the risks of unregulated gambling. The DGE working with the Delaware State Lottery, pointed out that unlicensed sites lack consumer safeguards and expose users to cyber threats like identity theft, data breaches, and unauthorized money transfers.
Law enforcement pointed out that unlawful gambling sites often copy the look of approved casino web pages using similar titles, layouts, and URLs to trick players. This sneaky tactic makes it hard for users to spot the difference between legal and illegal operators.
States Ramp Up Efforts Against Illegal Gaming, Highlighting Risks and Lost Tax Dollars
Besides the dangers to consumers, the state highlighted lost tax money as another effect of unlawful gaming. Cash that should back public services through regulated gambling channels ends up in the pockets of these unauthorized platforms instead.
The DGE stressed that just because you can download an app or visit a website, it does not mean it is legal. Officials urged residents to check gaming platforms on the Delaware Lottery’s official page to make sure they follow state law.
In a similar move that shows a wider crackdown, Maryland’s Lottery and Gaming Control Agency told VGW to stop all operations on March 12, 2025. The order made the company shut down its sweepstakes business in the state. State officials found that VGW’s platforms, including Chumba Casino and LuckyLand Slots, were running as gambling sites without licenses under Maryland law. The state pointed out that only sports betting and fantasy contests can run online, while sweepstakes games are not allowed.
Delaware and Maryland’s decisions fit into a bigger picture as more US states crack down on unregulated gaming to protect players from companies that try to get around standard gambling rules.