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The Delaware Division of Gaming Enforcement (DGE) has ordered VGW Luckyland, an Australia-based operator, to stop offering its services in the state. The order followed an investigation that found the company was operating illegal online gaming under the guise of sweepstakes.
VGW Luckyland marketed its platform as a sweepstakes service. However, according to the regulator, players could purchase coins and use them to play games that offered real cash prizes—making it a casino-style operation rather than a legal sweepstakes system.
As a result, DGE determined that VGW Luckyland violated the Delaware Constitution, the Delaware Penal Code, and the state’s Gaming Competitiveness Act of 2012. The company’s products have since been removed from Delaware’s market.
The regulator said the situation highlights risks to consumers when gaming platforms operate outside of approved legal frameworks. Unregulated services, it warned, increase the risk of fraud, identity theft, and cybercrime. DGE also mentioned that some bad actors attempt to copy the names and branding of legal operators in the state to mislead users.
The case comes as more states across the U.S. look closely at the growing sweepstakes model. Last month, lawmakers in New York and Arkansas approved bans on such platforms. In Louisiana, a new bill targeting sweepstakes is now facing pushback from the Social and Promotional Games Association.
VGW Luckyland is one of several companies facing regulatory action as officials move to crack down on what they see as loopholes in gambling laws. These platforms often operate in a legal grey area by offering coins or credits for gameplay that mimic traditional casino experiences.
Although labeled as sweepstakes, the structure often allows users to buy credits and play games that award real prizes—raising concerns among regulators about whether these services meet state legal standards.