Chumba Casino, Luckyland Slots $11.75M class action lawsuit settlement
VGW Malta Ltd., owner of Chumba Casino and Luckyland Slots, has agreed to pay $11.75 million to end a class action lawsuit claiming the company violated Kentucky gambling laws by selling virtual coins in Luckyland and Chumba Casino slots.
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.
Plaintiff Amy Jo Armstead filed the Chumba Casino and Lucklyand Slots class action lawsuit Sept. 7, 2022. Armstead states she played Chumba Casino and Luckyland Slots games, and lost more than $7,000 doing so. She argues she and many other people were harmed because VGW Malta violated Kentucky gambling laws designed to protect individuals.
She explains VGW Malta owns and operates virtual casino games through the brands Chumba Casino and Luckyland. Allegedly, the virtual games allow players to use virtual coins to play slot games.
The plaintiff states that while first-time players are given these virtual “gold coins” for free, after the initial play, consumers must pay real money to purchase these coins. Consumers can also reportedly place wagers to win more gold coins.
While the company lures players in with its “free to play” model, the games quickly charge players, according to the plaintiff, meaning they fall under the regulations of Kentucky gambling law.
She asserts that as games of chance are illegal in Kentucky, if gambling players lose money at games of chance in the state, they are entitled to receive their lost money within a certain timeframe. In her Chumba Casino and Luckyland Slots class action lawsuit, Armstead requested that the money she lost at gambling, and the money other similarly affected consumers lost, be returned to them.
VGW Malta has not admitted wrongdoing in response to these claims but has agreed to settle the claims to avoid the costs and risks of continued litigation.
Class members will be eligible for a proportional payment of the settlement amount, allocated based on how much money they lost from the settlement. These amounts will be determined after attorney fees and costs as well as class representative payments have been allocated.
A payment estimator is available on the settlement website.
Class members who wish to object to or exclude themselves from the Chumba Casino and Luckyland Slots class action lawsuit settlement must do so by Dec. 15, 2022.
A final fairness hearing is scheduled for Jan. 9, 2023.
To receive class action settlement benefits, class members must file a valid claim by March 6, 2023.