A judge has dismissed a lawsuit against VGW, closing a case that had alleged unlawful business practices by the sweepstakes gaming company.
A federal judge has dismissed a lawsuit against VGW Holdings, closing a case that had alleged unlawful business practices by the Australia-based online sweepstakes gaming company.
The order, filed on 19 August in the US District Court for the District of Montana, granted the defendants’ request to end proceedings and formally terminated the matter without prejudice.
That request had been submitted on 16 August, just four days after a joint motion for an extension to file responses had been made, the second such motion in a matter of weeks.
The dismissal marks a significant procedural win for VGW Holdings, the parent company behind several popular social casino platforms. No reason for the dismissal request was made available.
The plaintiffs, led by Montana resident Michael Lighter, had initiated the action earlier in 2025, asserting that VGW’s gaming model violated state and federal laws.
Montana is one of several states where VGW no longer operates.
The lawsuit originally sought damages and injunctive relief, targeting VGW’s use of virtual currencies and sweepstakes-style promotions in its online games.
The suit argued that these systems effectively constituted illegal gambling, despite VGW’s position that its operations complied with applicable regulations.
Dismissal may give VGW breathing room
The case reflected a broader legal conundrum confronting digital gaming operators in the US, where state-level laws vary and enforcement remains inconsistent.
By dismissing the case, the court has effectively alleviated immediate legal pressure on VGW, which has faced similar challenges in other jurisdictions.
The dismissal order places the onus back on regulators or future plaintiffs to establish a more robust legal foundation if they intend to challenge the company’s practices in Montana or elsewhere.
The decision also underscores the tenuous nature of many lawsuits targeting social casino operators.
Courts have often been ambivalent when asked to juxtapose traditional gambling statutes with modern sweepstakes-style gaming, a paradigm that has grown increasingly ubiquitous in recent years.
This case adds to a growing body of rulings that lean toward dismissal rather than litigation, suggesting that such claims may face high legal hurdles.