After receiving a cease and desist letter from the state of Connecticut, online gaming operator VGW has announced that they will be leaving the market. The company, known for their popular social casino games, had been operating in the state for several years before being forced to shut down their operations.
The cease and desist letter was issued by Connecticut’s Department of Consumer Protection, which cited violations of state gambling laws. VGW had been offering online casino games to Connecticut residents, despite not being licensed to do so in the state. The company had argued that their games were classified as social casino games, which are not regulated in the same way as traditional online gambling.
However, the Department of Consumer Protection disagreed, stating that VGW’s games still constituted gambling under state law. As a result, VGW was ordered to cease all operations in Connecticut and refund any money deposited by state residents.
In a statement released following the announcement, VGW expressed disappointment at the decision. The company emphasized that they had always operated in good faith and had taken steps to comply with all relevant laws and regulations.
Despite their disappointment, VGW has agreed to comply with the cease and desist order and will be shutting down their operations in Connecticut immediately. The company has also stated that they will be offering refunds to any customers affected by the closure.
This news comes as a blow to VGW, who had been steadily expanding their operations in the United States. The company had recently launched in several new states and had plans to continue their growth in the online gaming market.
It remains to be seen what impact this decision will have on VGW’s future business prospects. The company will now need to focus on regaining the trust of regulators in Connecticut and ensuring compliance with all relevant laws in any future markets they enter.
Overall, the case of VGW serves as a reminder of the complex legal landscape facing online gaming operators in the United States. As more states legalize online gambling, companies will need to navigate a patchwork of regulations to ensure that they can continue to operate legally and responsibly.