Lawsuit Settlement Against Chumba Casino for $11,75M
VGW Malta Ltd falls under state consumer law and is required to pay $11,75M to finish an open class action lawsuit. The violations are related to the legal framework of Kentucky and other states.
Class Action Lawsuit
The class action lawsuit was filed on Sept.7, 2022, by Kentucky residents who spent at least $5 at Chumba Casino or Luckyland Slots within a 24- hour period between March 17, 2017 and March 17, 2022.
Many people state they played these social casino games and lost thousands of dollars. They argue they were harmed by VGW Malta which violated the principles of gaming laws established for the benefit of customers. Some people assert that players who lose money at games receive a guarantee of taking their lost money within a certain period.
Other Similar Cases
There are other similar cases, for example in 2018, when people sued the owner of Chumba Casino because of their inability to win as much as they are spending in the casino. Furthermore, they have been accused of allowing minors to play despite the age restrictions. The states included in the lawsuit are Alabama, Colorado, Georgia, Hawaii, New Jersey, New York, Texas, Virginia, etc.
The “Free Play”
As it is known, sweepstakes casinos give virtual “Gold Coins” for free to play different kinds of slot games. Then, at some point, to continue the game, customers must pay real money to purchase these coins. The problem here is that the company attracts people with “free play,” but on the other hand, the games require players to make purchases. Similar practices make Chumba and Luckyland fall under the regulations of Kentucky gambling law.
VGW Malta’s Response
VGW Malta has not admitted the violations in response but has agreed to settle the claims to prevent continuing litigation. Class members will have the right to benefit from a promotional payment of the settlement amount. A final fairness hearing is scheduled for Jan.9, 2023. To receive benefits, class members must file a valid claim by March 6, 2023.