Delaware issues cease-and-desist to VGW Holdings

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The Delaware Division of Gaming Enforcement, with the support of the Delaware State Lottery, has identified offshore operator VGW Luckyland – owned by Australian group VGW Holdings – as having operated illegally in the state.

The investigation by the Division of Gaming Enforcement found that VGW Luckyland had violated multiple state laws, including the Delaware Constitution, the Delaware Penal Code, and the Delaware Gaming Competitiveness Act of 2012, by offering social casino games to Delaware players.

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According to a statement released by the Delaware Division of Gaming Enforcement, VGW had misrepresented its service as a promotional sweepstakes platform by offering players the chance to win real-cash awards after purchasing digital currency on casino-style games.

“The DGE and Delaware Lottery emphasize the importance of legal and responsible gaming practices to protect residents,” said the gambling regulator. “Unregulated gaming poses significant risks, including limited withdrawal options and potential exposure to cybercrime, identity theft, and fraud.”

The regulator went on to say that unregulated online casinos may use similar branding and URLs to mimic legitimate casinos already operating in the state and that residents must be wary. Additionally, it cited that Delaware currently loses a significant amount of revenue due to unregulated gaming.

Delaware isn’t the only state tackling unregulated gambling. Previously, the Maryland Lottery and Gaming Control Agency, sent its own cease-and-desist to VGW (Virtual Games World), which had been illegally operating sites such as Chumba Casino and Luckyland Slots in the state.