VGW Montana lawsuit dropped by federal judge

A federal judge in Montana has dismissed an ongoing court case involving sweepstakes provider VGW.

The Australia-based sweepstakes company has received several cease-and-desist orders across 2025, but has continued to thrive throughout the United States.

Now one of the complaints against the betting operator has been dismissed as part of a court case involving federal gambling and licensing laws.

Montana local Michael Lighter raised a legal complaint, citing that VGW’s dual-currency model was a breach of the state’s legislature and federal laws.

He was seeking compensation in the case (Lighter et al v. VGW Holdings Limited et al), but the US District Court for the District of Montana’s Judge Donald W. Molloy approved VGW’s plea to dismiss the case without prejudice.

It is unknown why VGW has requested the case come to an end, but the without prejudice element points to a possible out-of-court settlement for Lighter.

Not all states are happy with sweepstakes gambling, as we reported that Montana took action to ban sweepstakes betting within Big Sky Country.

Governor Greg Gianforte signed Senate Bill 555 into law in May 2025, and since then, the target has been on the back of betting companies hoping to provide sweepstakes in the state.

At the time of the Montana governor’s decision, there were other major gambling and legislative moves across America as pointed out by lawyer and pundit Daniel Wallach on X.

Later in the same month Nevada would follow suit, taking Sen. Rochelle Nguyen’s Senate Bill 256 to the desk of Governor Joe Lombardo with a 42-0 majority.

California had mixed reactions to the proposals in their own back yard, with those against the moves to ban online social gaming and sweepstakes saying over $1bn would be lost annually if Assembly Bill 831 (AB831) was to come to pass.

“Social casinos with sweepstakes…generate more than $1 billion in combined direct and indirect benefit to California annually,” a study by researchers Eilers & Krejcik Gaming presented in support of a move to regulate, rather than ban both of the gaming avenues.

Massachusetts is gearing up for its third legislative gambling push to limit sweepstakes in 2025 which would see only three locations, Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino to partner with an approved licence holder.

So sweepstakes gaming has a mixed audience from all of the United States, but it remains to be seen if Montana’s model will work some states or the temptation of regulation for financial windfalls will win out.

Featured image: Pexels.

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