In September 2022, Kentucky resident Amy Jo Armstead et al. filed the Chumba Casino class action lawsuit against VGW Malta Ltd., operator of the online casino site Chumba Casino. According to the plaintiffs, VGW Malta Ltd. violated the Kentucky gambling laws to prevent susceptible individuals from falling into a destructive cycle of gambling.
At Sparrow, we thoroughly assist class members discover and file claims for class action settlements to which they’re entitled. With extensive industry experience, we handle a wide range of cases, from real estate settlements to online retail disputes, like the recent Temu class action lawsuit. Our expert team will guide you through the claims process, providing critical updates on claim status and ensuring you receive the compensation you’re rightfully owed.
With our expert insight, we’ve crafted this blog to help you better understand how the Chumba Casino class action lawsuit progressed. We’ll discuss the important details surrounding it, including allegations, settlement terms, and the company’s stance on the case. If you missed the opportunity to file a claim to this class action, we’ll also advise you on what to do in a similar lawsuit that you might be eligible to file claims.
Let’s get started!
Chumba Casino Company Background
Chumba Casino is one of the brands through which VGW Malta Ltd. operates virtual casino games, with Luckyland Slots being the other one. VGW Malta Ltd. is a subsidiary of VGW Holdings Limited, a global technology company that specializes in online social gambling, founded in 2010. According to VGW, they cater to over 1 million users worldwide, with the majority of users based in the United States.
As a social casino, Chumba Casino provides services distinct from traditional online bets that use a free-to-play model. On top of this, it also employs a sweepstakes model that lets players win Sweeps Coins, which can be used to keep playing various games and redeem cash prizes. This provides a risk-free way to win real money and is the main selling point of Chumba Casino, but this Chumba Casino class action lawsuit proves that it is not as risk-free as advertised.
Case Details: Chumba Casino Class Action Lawsuit
Following a “free-to-play” model, new players at Chumba Casino are given a certain amount of free coins to play virtual casino games. The Armstead v. VGW Malta Ltd. Chumba Casino class action lawsuit was filed on the grounds that players were misled into purchasing more coins with real money.
Allegations
The Chumba Casino class action lawsuit revolves around the failure of VGW Malta Ltd. to be fully transparent about the nature of their games. According to plaintiffs, Chumba Casino did not sufficiently clarify that further coins would have to be purchased with real money.
Here is a breakdown of the allegations:
- Fraudulent Concealment: Plaintiffs allege that VGW Malta Ltd.’s failure to disclose enough information about their games misled consumers about the true extent of the costs involved in getting the experience they wanted.
- Violation of Gambling Laws: The Chumba Casino class action lawsuit claims that the casino’s virtual coin system constitutes illegal gambling under Kentucky law. These laws were designed to protect people from the pitfalls of gambling, and by alluring players to buy coins with real money, VGW Malta Ltd. is in violation of them.
- Financial Damages: Because of their misleading practices, the plaintiff reportedly lost significant amounts of money.
Essentially, Armstead et al. accuse VGW Malta of employing predatory practices in order to get players to purchase virtual coins with real money to keep playing. Such practices usually involve concealing purchases made with real money instead of virtual currency. .
Company’s Stance on the Case
VGW Malta Ltd. has not published any statements admitting to wrongdoing in response to the allegations. However, the company has agreed to settle the claims to avoid the costs and risks of allowing the litigation to continue. This also ensures that class members get their rightful compensation sooner rather than after a lengthy trial.
Settlement Details
In order to settle the Chumba Casino class action lawsuit out of court, VGW Malta Ltd. agreed to a settlement package that includes a payment of $11.75 million. After deducting attorney fees and other costs, this amount will be distributed among the affected players based on their financial losses.
Class members include all Kentucky residents who spent $5 or more at Chumba Casino or Luckyland Slots within a 24-hour period between March 17, 2017, and March 17, 2022. The exact amount that claimants will receive depends on the total dollar amount of in-game purchases and how many class members submitted claims.
In addition to the settlement fund, VGW also agreed to implement responsible gambling features. This includes adding a self-exclusion option to allow players to opt out of playing at any point. With a commitment to improving transparency, they aim to promote responsible gambling practices on their site.
Timeline of Action for Chumba Casino Class Action Lawsuit
The Chumba Casino class action lawsuit followed a critical timeline that defines who is eligible for a claim and when to submit claim forms. Here’s a general timeline of important events throughout the lawsuit:
- Filing Date: The Armstead v. VGW Malta Ltd. Chumba Casino class action lawsuit was filed on September 7, 2022, in the Henderson County Circuit Court, Commonwealth of Kentucky.
- Claim Deadline: The deadline to file claims for this class action transpired on March 6, 2023.
- Final Fairness Hearing: The final fairness hearing, held on January 9, 2023, resulted in the approval of the proposed settlement.
- Payout Date: Payments began to be issued on May 5, 2023.
Once again, eligible class members can no longer file a claim for this class action if they haven’t yet done so. If you have been informed to receive your payment through check, keep in mind that checks become void 180 days after the issue date. Funds from uncashed checks or unprocessed electronic payments may be used for a second round of distribution to class members, similar to what happens to unclaimed settlement money in general.
How to Stay Updated on Lawsuit Proceedings
Closely following lawsuit proceedings is important to ensure that you receive prompt and proper compensation. If you missed your chance to file a claim in Armstead v. VGW Malta Ltd. Chumba Casino class action lawsuit, make sure to follow these tips to stay updated on future class actions:
1. Check the Settlement Website
Regularly checking the settlement website can give you firsthand updates from the settlement administrator on how the lawsuit is progressing. In the case of Armstead v. VGW Malta Ltd. Chumba Casino class action lawsuit, keep checking the site for up-to-date information. Given the website’s more general name, it’s likely that it will be repurposed for future major class actions against Virtual Gaming Worlds, so it could be worth checking it again.
2. Follow Court Updates
The presiding district court will also publish updates on lawsuit proceedings and any changes to claims submission requirements. Court outlets are often updated much earlier than the official settlement website, so it pays to check them frequently if you want to stay on top of claims requirements. It would also be best to subscribe to email notifications to get critical updates from the court as soon as they’re published.
3. Stay Tuned to Legal and Gaming News
Established news outlets can provide information and insights that official sources may not immediately disclose. News publications and blogs that focus on gaming and class actions are particularly good for this purpose. Sparrow’s blog provides actionable insights that can help potential plaintiffs and other interested parties discover important case details while assisting claimants in obtaining compensation.
Key Takeaway
The Chumba Casino class action lawsuit is only one example of the widespread deceptive practices employed by online casino companies to entice players to spend real money on their apps and sites. Although the settlement agreement with VGW Malta was not an admission of the company’s guilt, affected players were at least able to get back the money that they were misled into spending. With a promise to improve their practices, this settlement will hopefully set a precedent that other online casino platforms can follow.
If you missed your chance to file a claim for a Chumba Casino class action lawsuit, remember to check the settlement website and follow court updates for the latest information. Following legal and gaming news outlets can also provide timely insights. Check the Sparrow blog for regular updates and the latest information on different class action lawsuits for which you might be eligible.
Need assistance on filing claims to class action settlements? Sparrow will give you specialized guidance and resources you need to have a smooth claiming experience, from filing the claim to receiving the payout. We specialize in helping individuals receive the proper compensation they’re entitled to from a settlement without the hassle. Connect with us today!