Sports Betting
Connecticut online gaming operator VGW is leaving the market after receiving a cease and desist letter
Zach Wolpin is an NBA and NFL expert who's been betting on the league for over three years now. Wolpin is a fan of the NFL and NBA and has been watching for a decade and a half. He covers the latest news and stories surrounding the league daily. His passion in life is sports and being able to share that through his writing. He has written about the NBA and other sports leagues through various media outlets over the years like Sir Charles In Charge, G-Men HQ, and TAP into South Plainfield. Before he became a Sports Editor, Wolpin attended Montclair State University where he graduated in 2021. He studied Sports Media and Writing while in school.
Get to know Zach Wolpin betterPublished3 hours ago on October 07, 2024
Since October 2021, sports betting and online wagering have been legalized in Connecticut. It’s another source of revenue for the state. However, Australian-based sweepstakes operator VGW is pulling out of the Connecticut online gaming market. This comes just eight months after the company received a cease and desist letter. Connecticut’s Department of Consumer Protection regulates the state’s online casinos.
A spokesperson from VGW confirmed last Friday that the company has stopped allowing users to place wagers in Connecticut. Additionally, the company is wrapping up operations with its existing customers in the state. This is being monitored by the Department of Consumer Protection. The spokesperson from VGW stated they “respectfully disagree” with the decision forcing them to leave the Connecticut market.
VGW leaving the market was in the ‘best interest’ of stakeholders
Connecticut is not the only state where VGW has received a cease and desist notice. Last December, VGW was notified to shut down its operations and it complied. Ten months before that, they received a cease and desist letter in Deleware. However, that request for VGW to leave the marker went unanswered. Delaware is not listed as a state where VGW players are prohibited from placing wagers.
If the VGW had their choice, they would remain open in the Connecticut market. The company disagrees with the Department of Consumer Protection’s position. They claim that Connecticut’s social gaming laws do not favor VGW. While the VGW wants to remain open, they are keeping their shareholders in mind. The VGW is confident in its compliance with all laws and regulations.
What type of gaming does VGW offer?
First, VGW is a sweepstakes operator. They distinguish themselves from traditional sportsbooks by using virtual currency instead of real money. Users can acquire this currency through free methods or by purchasing coin bundles. Last month, 10 sweepstakes operators around the country created the Social and Promotion Gaming Association. The VGW is not a member.
Additionally, the American Gaming Association wrote a memo asking regulators to take a deep dive into sweepstakes operations. The AGA claims that sweepstakes operators are not under the same scrutiny as traditional sportsbooks. They feel that certain operators are trying to avoid gaming laws and regulations.
