A class-action lawsuit accusing Chumba Casino and its parent company of illegal virtual coin sales in Kentucky has been settled for $11.75 million, marking a significant win for consumer protection and potentially shaping the landscape of online gambling.
| Complete Date | Case/Citation | Court | Short Summary |
|---|---|---|---|
| Filed 2022 | Armstead v. VGW Games, Inc. (Case No. 2:22-cv-00133-WVG) | U.S. District Court for the Eastern District of Kentucky | Plaintiffs claimed Chumba Casino’s virtual coins, used for online gambling, violated Kentucky law. |
| Settled March 2023 | Approved May 2023 | Kentucky court | $11.75 million settlement provides compensation to Kentucky residents who purchased virtual coins between March 17, 2017, and March 17, 2022. |
Key Allegations:
- Illegal Virtual Coin Sales: Plaintiffs argued Chumba Casino’s virtual coins functioned as illegal gambling chips under Kentucky law.
- Consumer Protection Violations: The companies were accused of breaching Kentucky’s consumer protection laws through unfair and deceptive practices.
Outcome:
- Settlement reached for $11.75 million, approved by a Kentucky court.
- Kentucky residents who purchased virtual coins during the specified period are eligible for compensation.
Implications:
- This settlement sets a precedent for consumer protection in online gambling within Kentucky.
- It potentially opens doors for similar lawsuits against online gambling companies using virtual currencies.
- The online gambling industry might face stricter regulations and legal scrutiny regarding virtual coin sales.
Recommendations for Consumers:
- Stay informed about online gambling laws in your state.
- Prioritize licensed and regulated platforms within your state’s jurisdiction.
- Carefully review terms and conditions before engaging with any online gambling platform.
- Seek help from gambling addiction resources if necessary.
Disclaimer:
This information is for general knowledge purposes only and does not constitute legal advice. Please consult a qualified legal professional for specific legal matters or concerns.
