$44 Million Tax Battle Ignites: Louisiana Takes on VGW and WOW Vegas

Social sweeps casinos just can’t catch a break in Louisiana. After Louisiana’s chief legal officer ruled that these gaming sites are “illegal” via a legal opinion published July 2, the industry is front and center again. 

The latest twist comes in a legal action against WOW Vegas and VGW, which aims to recover more than $44 million in unpaid state sales taxes. According to the lawsuits, these companies “failed to collect and pay sales taxes” on virtual currencies sold to Louisiana-based players.

Missing Taxes: Breaking Down the Numbers

The state’s current lawsuits are based on the July 2025 opinion of Attorney General Liz Murril, which explained that online casino games remain illegal in Louisiana. Also, the Department of Revenues argues that by selling virtual goods (Gold Coins and Sweeps Coins) to locals, these gaming operators acted as dealers, thus liable for collecting sales taxes. The state’s lawyers are training their guns on VGW and MW Services (WOW Vegas):

• VGW. Louisiana is seeking $30.5 million from VGW Holdings and its subsidiaries, including LuckyLand Slots, Global Poker, and Chumba Casino.
• MW Services (WOW Vegas). The state is asking for $13.6 million from MW Services.

Both gaming companies were the subject of a cease-and-desist letter from the Louisiana Gaming Control Board, together with over 30 other gaming firms, for allegedly conducting unlicensed betting activities within the state.  According to LGCB Chair Christopher B. Hebert, they will not allow these illegal sites to “harm citizens, or the gaming industry”.

Court documents reveal that the state’s Department of Revenue is hammering these two companies for failing to collect and remit taxes on sales related to its in-house currencies. WOW Vegas was cited for failing to meet state tax obligations despite earning huge revenues from Louisiana players. Louisiana claims that all transactions, including Gold Coins (GCs), are deemed taxable sales, hence must be reported to the state.

Murrill Slams Dual-Currency Gaming Sites as Illegal

Early in July, the state’s chief lawyer, Liz Murrill, penned a legal opinion explaining that these sweeps casinos are “illegal”. Murill’s legal opinion was in response to the query of state senator Rick Edmonds about whether these platforms comply with state gaming laws. 

She explained that these sweeps casinos that use “Gold Coins” and Sweeps Coins” are still gambling. Also, the charging of fees, storing funds, and earning prizes make these activities illegal under the state’s gambling laws. 

She further explained that sweeps casino’s offers aren’t comparable to those of Marriott. Hotels like Marriott run all year to profit from sales, she added, not to provide real sweeps.

The Sweeps’ Battle On Taxes Continues

The lawsuit reflects the state’s broader crackdown on sweeps casinos, shifting to tax collection, instead of legislative bans. The LGCB is also planning to send more letters to about 90 sweeps casinos operating in the state. State regulators say that violators face serious penalties, including fines of up to $20,000 and up to 5 years in prison. These cases faced by VGW and WOW Vegas highlight the ongoing challenges for sweeps casinos not just in Louisiana but in other states, too, and could potentially shape future regulations.

REFERENCES

• Louisiana Gaming Control Board