VGW, the company behind online brands Chumba Casino, LuckyLand Casino, and Global Poker, is facing intense legal scrutiny. To fight against more states banning its dual-currency model, the company has been spending heavily on lobbying.
Data gathered from Transparency USA reveals that VGW has spent over $1 million on lobbying in this year’s elections.
That spending breaks down as follows:
- Florida: $562,500
- Alabama: $351,000
- Texas: minimum $139,430, maximum $253,870
- Arizona: $70,000
- Tennessee: $25,000
- Kentucky: $15,000
Florida gubernatorial candidate Byron Donalds was one of the biggest benefactors, receiving $100,000 from the company. Kalshi’s market currently gives him an 80% chance of becoming the state’s next governor.
VGW declined to comment on its lobby spending when contacted by Gaming America.
Florida Spending Fails to Protect Company
The outlay in Florida failed to prevent the state from suing VGW last month. Attorney General James Uthmeier said the company is running an illegal gambling operation and vowed to recover losses on its platforms.
If it looks like a casino, takes money like a casino, and pays out like a casino, it is a casino—and it’s illegal in Florida.
VGW’s spending in the state pales in comparison to the Seminole Tribe, which holds exclusive rights to offer gambling in Florida.
The tribe donated $4 million to Donalds, forty times more than VGW. In total, the group has spent $8,788,000 on political contributions in Florida this year as it aims to preserve its gaming compact.
VGW Backs Tommy Tuberville in Alabama
VGW has also backed Tommy Tuberville to win the gubernatorial race in Alabama. The company added an extra $100,000 to Tuberville’s campaign last month, on top of a previous $30,000 donation.
That makes the sweepstakes operator one of the largest donors to the former college football coach-turned-Senator. Kalshi gives the 71-year-old a 92.4% chance of winning the election in November.
While maintaining a tough stance against regulated gambling, Alabama has not taken any formal action against sweepstakes casinos. However, there are at least 40 active civil lawsuits against operators, including VGW.
Other gambling groups have also spent large amounts on lobbying in Alabama in an attempt to relax the state’s strict anti-gambling laws. While there are pushes among some lawmakers, there remains plenty of opposition to legalization.
VGW Pays $8M to Settle Dispute in New York
The money spent on lobbying is also a fraction of the costs VGW pays in litigation. Last week, the company agreed to pay $8 million in penalties to New York.
The company withdrew from the state last year after it issued VGW and other operators a cease-and-desist order. New York Attorney General Letitia James said the payment reflects the damage the operator had already done to New Yorkers.
“Online sweepstakes casinos like Chumba Casino, Global Poker, and Luckyland Slots posed a dangerous threat to New Yorkers and their financial and mental health,” James said in a statement. “My office took action to stop these illegal platforms last year, and now we are holding VGW accountable for the damage done.”
