Louisiana sues online sweepstakes operators VGW and MW Services for $44M

The Louisiana Department of Revenue (LDR) has opened a lawsuit against Virtual Gaming Worlds (VGW) Holdings and MW Services (trading as WOW Vegas), seeking almost $44 million in unpaid state taxes and penalties. 

A major driver for the legal action is the estimation of virtual currency sold by the operators to Louisiana residents, which LDR insists should have been subject to sales and use taxes under regular state law. 

The action taken over the trading of Gold Coins and Sweepstakes Coins, used as the virtual currency on the platforms, represents an escalation of action taken against sweepstakes in Louisiana, but it is far from the first salvo. 

Back in April this year, a bill filed by Senator Adam Bass attempted to stamp out online sweepstakes in the Pelican State, with SB 181 outlawing the operation and promotion of such sites. 

The legislation addressed what it calls “gambling by computer,” which includes any online games, contests, or promos that use a dual-currency system, such as free and paid coins, and gives players a shot at winning prizes, cash, or anything with real-world value.

The bill also targeted banning any form of lottery-like games and even sports betting, including anyone connected to the operation, such as geolocation providers, gaming manufacturers and suppliers, platform providers, promoters, and even media affiliates that help promote or support these illegal online gambling sites.

BREAKING: The Louisiana Department of Revenue has sued online sweepstakes casino operators VGW and MW Services (dba "WOW Vegas") for $44 million in unpaid taxes, interest, and penalties based on estimated sales of virtual currency to in-state residents. pic.twitter.com/VOUSBMHloT

— Daniel Wallach (@WALLACHLEGAL) September 6, 2025

Fresh approach from Louisiana to pursue lost tax revenue dollars

VGW Holdings is an Australian-based company operating popular sweepstakes platforms like Chumba Casino, LuckyLand Slots, and Global Poker, while its counterpart MW Services, is the entity responsible for WOW Vegas, a Gibraltar-based sweepstakes casino offering similar games.

In June, the state legislature passed SB 181 to ban all such platforms, but Gov. Jeff Landry vetoed it the following day, arguing that existing laws already prohibit them and that regulators like the Louisiana Gaming Control Board (LGCB), Attorney General’s Office, and State Police Gaming Division were actively enforcing compliance.

The LGCB followed up by issuing 42 cease-and-desist letters to offshore and sweepstakes operators, including VGW and entities linked to WOW Vegas, outlining violations of state gaming laws.

This led to the VGW announcing restrictions on promotional (sweepstakes coin) play, while WOW Vegas notified users that would exit Louisiana by July 11.

Now, the tax-focused lawsuit by the LDR represents a fresh approach from a different angle. 

Rather than taking crime and outlaw-based enforcement, it is going after the lost tax revenue dollars, plus interest, with this lawsuit potentially setting an intriguing precedent for other states to pursue tax recovery from sweepstakes operators.

VGW declined to comment, citing the ongoing legal proceedings.

Image credit: Joe Levigne/Unsplash

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