VGW, the sweepstakes leader, is facing further legal attention after a woman launched a class action lawsuit against the company in Connecticut.
New Connecticut state class action seeks damages from VGW.
Stephanie Cox filed her lawsuit in Connecticut Superior Court last week. She chose not to participate in the company’s binding arbitration clause, and she is seeking reimbursement for the organization that is supplying unlawful gaming in the state.
Connecticut slapped VGW with a cease and desist order earlier this year, and the business withdrew from the state in August.
Cox submitted the most current financial report for the parent firm of brands such as Chumba, Luckyland Casino, and Global Poker in his class action lawsuit. The breakdown of financial performance during FY23-24 provided some unique insight into corporate performance.
VGW made $323.5 million in profit last year.
According to the study, the VGW portfolio earned slightly more than $4 billion in revenue, up from $3.1 billion the prior year. The total profit after taxes came to $323.5 million.
The report, which covers income from both social casino and sweepstakes products, stated that handing out sweepstakes prizes cost the business $2.83 billion, up from $2.2 billion in FY22-23.
The study also observed that marketing expenditure was increasing, from $237 million to $275 million, while cost per acquisition was relatively steady, increasing only 2% year on year.
In the last year, VGW has signed endorsement partnerships with Michael Phelps and Ryan Seacrest.
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VGW paid $121 million in taxes last year.
Many critics of sweepstakes sites claim that the corporations do not pay taxes, however the VGW balance statement shows that the group paid $121 million in taxes last year to nations like Australia, Malta, and the United States.
“The Group takes its tax duties seriously and works in a sector where the tax landscape is constantly changing. The aforementioned corporate review will involve an assessment of the Group’s tax status in all countries in which it operates, with a focus on Australia, the United States, and Malta. It is likely that the investigation will reveal that more tax may be payable on prior positions. “At this time, the entity is unable to determine the outcome of the tax reviews and thus cannot calculate a reliable estimate of possible outflow,” the report stated.
By comparison, regulated internet gambling in the United States produced $6.5 billion in revenue in 2023.
While it is difficult to determine VGW’s gaming income because social and sweepstakes gross sales are mixed, total revenue less sweepstakes awards equals around $1.2 billion. This represents slightly more than half of the money collected by the Pennsylvania market last year.
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