Georgia Class Action Against VGW Sweeps Operator Dismissed
Recently, a class action lawsuit against VGW, a major player in the sweepstakes market, was dismissed by the Georgia Northern District Court. Fair Gaming Advocates brought the lawsuit against VGW Holdings, but Judge Thomas Thrash ruled that the court does not have jurisdiction to hear the case.
Fair Gaming argued that because VGW accepts customers from Georgia and has employees in the state, the court should hear the case. However, Judge Thrash disagreed, stating that the limited interaction of VGW’s gaming websites with Georgia residents did not meet the state’s long-arm statute requirements.
In the ruling, Judge Thrash explained that because VGW’s sites like Chumba and Luckyland are passive websites and do not deliver goods or services to Georgia, the court lacks jurisdiction. He also declined VGW’s request to compel arbitration, as the court cannot rule on a case it does not have jurisdiction over.
Another lawsuit against VGW, filed by Destiny Kennedy in the Georgia Southern District Court, is still active. Kennedy claims she opted out of the arbitration clause in VGW’s terms and conditions, but VGW argues that she agreed to updated terms after creating an account. The outcome of this second lawsuit is pending.
It’s important to note that the court’s decision in the first lawsuit does not affect the second lawsuit filed by Kennedy. As the legal proceedings continue, it will be interesting to see how the court rules on VGW’s motion to dismiss in the ongoing case.
