Written by :
Published on :
OAKLAND PARK, Fla. (Gambling911.com) - Arkansas Attorney General Tim Griffin filed separate lawsuits targeting prediction markets and sweepstakes gambling. The Kalshi complaint alleges illegal gambling operations and related harms.
In a separate lawsuit, Chumba Casino parent company VGW was targeted.
Griffin accuses both companies of offering illegal gambling in Arkansas and seeks major financial penalties, including restitution of losses to customers and of taxes to the state.
Griffin released the following statement:
“Arkansas’s gambling laws are clear. If you’re providing a means for Arkansans to gamble money within our state, you are subject to the rules and regulations that govern legal gambling.
“VGW provides Arkansans the opportunity to play various popular online games, and it claims that it is not operating a gambling business. But our review of the company shows that claim to be false. That’s why I’ve sued the company today for violating the Arkansas Deceptive Trade Practices Act.
“VGW rests its claim that it does not provide gambling services on a distinction between two virtual currencies. One is called ‘Gold Coins,’ and it is effectively worthless. But consumers purchase Gold Coins with real money. When they do, they receive ‘Sweeps Coins’ as a bonus. Sweeps Coins can be used to play online casino-style games, and users can redeem Sweeps Coins they win through those games for actual cash. Any reasonable person would call that gambling.
“Decades before VGW launched its platforms, internet sweepstakes cafes promoted a similar arrangement. Consumers paid money for internet time, received ‘free’ credits, and used those credits to play games for the chance to win cash prizes. When challenged, the cafes argued that consumers were paying for internet time, not the opportunity to gamble. Courts repeatedly rejected the attempt to circumvent gambling laws by calling the activity a sweepstakes.
“VGW’s claim that the distinction between the virtual currency one buys and the virtual currency one redeems is weak at best, and courts have rejected this too-cute-by-half logic time and time again. Companies that operate gambling businesses in Arkansas are subject to our gambling laws, plain and simple. Our lawsuit seeks relief that includes restitution, penalties, taxes, and injunctive relief.”
Gambling News
FanDuel Donated $30M+ to a Super PAC Over Last 9 Months
Major mobile sports betting operators—including FanDuel (backed by parent company Flutter Entertainment), DraftKings, and Fanatics—have heavily funded super PACs to influence state and federal elections, shape online sports betting and iGaming (online casino) regulations, and limit taxation.
FanDuel-owner Flutter Entertainment reported this morning that it contributed ~$30M+ to a super PAC over the first nine months of 2026. https://t.co/DcLK7Cxxth
— Geoff Zochodne (@GeoffZochodne) November 4, 2026
State Reported spending or activity Primary gambling issue
- Georgia $9.92 million transferred to a Georgia-focused PAC Legalizing sports betting
- Texas $3.5 million transferred to Texas Conservative Fund Legalizing sports betting
- Pennsylvania Millions directed toward state political activity Opposing higher sportsbook taxes
- Illinois Spending in state legislative primaries Sports betting taxes and per-wager fees
- Alabama More than $2 million in advertising against one Republican Senate candidate Gambling legalization
- Ohio Advertising and mailers in Republican legislative primaries Betting taxes and proposed restrictions
- North Carolina Identified among the PAC's early targets Sports betting regulation
- New York Spending in state Assembly races Sports betting regulation and taxation
Texas may look promising on the surface following Tuesday's blue tsunami the swept through the state, but looks can be deceiving.
Dan Patrick was among the staunchest opponents when it came to gambling expansion in the Lone Star State. He was among the big name Republicans defeated Tuesday.
Rob Kohler, an anti-gambling lobbyist, told the San Antonio Express News that Patrick's exit from the political playing field is unlikely to change the dynamics on such fronts as legal casinos or sports betting however.
"I know he's been characterized (as the bulwark against gambling), but in recent sessions there just weren't the votes in either chamber for it," Kohler said. "Patrick got a lot of the headlines, but at the end of the day, the members' votes weren't there."
Constitutional amendments require two-thirds approval in both chambers of the Texas Legislature before voters can decide. Republicans retain their majority in the state senate and are expected to hold 67 seats in the house.
And Georgia?
The 2027 legislative environment in Georgia will be substantially different from the one that rejected the 2026 sports betting amendment.
Democrat Keisha Lance Bottoms' victory in Tuesday's gubernatorial election is certainly a plus for gambling advocates in the state.
Bottoms, who takes office in January 2027, supports allowing Georgia voters to decide whether to legalize sports betting and casinos through a Constitutional amendment. That's a meaningful change from the outgoing administration's political environment.
Democrats secured at least 91 seats in the 180-member Georgia House, while Republicans retained the Senate by a narrow 29–27 margin.
A new legislative effort could emerge in 2027, but a constitutional amendment still requires two-thirds support in both chambers and voter approval.
Gambling Crime (Texas)
Pokemon, Sports Cards Given Instead of Money at Seven Illegal Gambling Shops Busted in San Antonio
A San Antonio gambling operation that gave Pokémon and sports cards as prizes to circumvent Texas gambling laws was raided Wednesday. Seven storefronts on the North and West sides were raided, and 23 people were taken into custody. Thirteen face charges related to drug possession and promoting gambling, according to Bexar County Sheriff Javier Salazar. (read more from the San Antonio Express News)
Politics
Pete Hegseth Out By January 2027 Odds: Kalshi Traders Push That Number Up to 74 Percent
With the Democrats set to take control of both the House and Senate come January, Secretary of Defense Pete Hegseth's chances of exiting that role by February 2027 rose from 65 percent to 74 percent over the last 24 hours at the prediction market Kalshi. The number was still hovering around 70% as of Wednesday morning.
- Chris Costigan, Gambling911.com Publisher
