Hi guys. This took a little longer to get together. But here is a FAQ document that should answer a lot of the valid questions you members here at the forum has.
Global Poker Sweepstakes
Frequently Asked Questions (FAQ)
So, who is Global Poker?
Global Poker is developed, owned and operated by VGW Holdings Limited. VGW is a public company incorporated in Australia in 2010. VGW first developed and launched “Chumba Casino”, a leading social casino, offering our unique sweepstakes cash prizes available on both Facebook and at chumbacasino.com.
Global Poker aims to be a leading poker room bringing fun and excitement to poker players globally. Our initial focus is on the US, “the home of Poker” and Canada, but intend to expand globally very soon, making Global Poker truly Global!
Is Global Poker the only gaming company to use sweepstakes prizes?
No, gaming companies offering sweepstakes with prizes is nothing new. There have been, and still are, many gaming companies offering sweepstakes with prizes. Pureplay Poker (www.pureplay.com
) is an example of another sweepstakes poker model.
Is my money safe with Global Poker? Many poker players remember what happened when Full Tilt froze their cash balances. What comfort can Global Poker give that this is not going to happen
Global Poker is owned and operated by VGW Holdings Limited, a public company in Australia with obligations to operate at the highest financial and consumer protections standards.
As an Australian public company we are obliged to comply with all rules and regulations INCLUDING the protection of player sweeps and gold coins balances at any time. This is the
same as maintaining “segregated funds” for traditional online poker rooms.
What are “Sweepstakes”?
Sweepstakes are trade promotions with prizes. They promote additional sales through prize giveaways and have been used for decades, worldwide.
How does Global Poker’s Sweepstakes model work?
Global Poker sells virtual currency (Gold Coins). Our Gold Coins can be used to enter and play a range of different poker games and tournaments, against other players with Gold Coins. Any winnings from play with Gold Coins will be credited to the player’s balance, however, gold coin winnings can never be cashed out.
To promote the sale of Gold Coins, we give away Sweepstakes, uniquely represented as a virtual currency (Sweeps Cash). Sweeps Cash can be used for play in our poker room, against other players with Sweeps Cash, until winnings are withdrawn via PayPal as real cash prizes.
Isn’t this just a loophole for gambling?
No. We have created a new business model: virtual currency (social) gaming combined with real cash prizes.
It is definitively categorised as not gambling in the US, Canada, and many other countries worldwide, as proven by the high-profile companies that have conducted their own due diligence on Global Poker’s Sweepstakes model, including PayPal, (Facebook) and others.
What other companies use sweepstakes?
Many companies worldwide use sweepstakes to promote and sell their products.
Sweepstakes promotions have been running for decades in the US and other countries around the world.
Publishers Clearing House (PCH) Reader’s Digest sweepstakes, McDonalds’ Monopoly millionaire sweepstakes, Pepsi’s Billion Dollar Sweepstakes and Proctor & Gamble’s sweepstakes are some of the more widely known, and often global, promotions.
Reader’s Digest has a sweepstakes focused business model that sells physical goods, rather than the digital goods that Global Poker sells. PCH has been operating this business model, and their global Readers Digest sweepstakes lottery, since 1967.
Who has done the legal due diligence on this model? Which companies does VGW operate the sweepstakes model in partnership with?
Significant, high-profile companies including Facebook, PayPal, and Worldpay have all performed in-depth analysis and full legal due diligence of Global Poker’s sweepstake model.
These are multi-billion dollar technology companies and payment processors in the US that do not allow gambling companies and their offerings on their platforms.
Each of these companies have conducted months of due diligence, reviewing our counsel’s opinion and challenging the business model and product.
Global Poker has successfully passed each legal review and continues to operate its unique social sweepstakes gaming model in partnership with each of these companies.
What is the risk laws will just change?
Low. Sweepstakes regulation in the US is on a state-by-state basis, so laws in 50 states would need to change.
Furthermore, since Sweepstakes trade promotions are offered by a large number of brands and companies, including many multinationals, any regulatory change would have broad consequences and likely be challenged.
Regulatory change over the long term is likely, and in time VGW expects a similar journey to other technology companies that have created disruptive new business models, like DraftKings and Fanduel (Daily Fantasy Sports), AirBnB (accommodation) and Uber (transport).
Who is Global Poker’s expert counsel on US sweepstakes law?
Adam Solomon of Michelman & Robinson LLP, a US lawyer specialising in sweepstakes law.
Adam is the Vice Chairman of the American Bar Association’s Committee on Promotion & Marketing Law, and a member of the American Bar Association’s Consumer Protection Committee. He has been named as a Notable Practitioner by Chambers USA in the area of Advertising: Transactional & Regulatory, citing "deep knowledge and understanding of all issues involved with advertising, including direct marketing, promotions marketing, sweepstakes and contest law”.
Global Poker also engages other specialist counsel in the US and around the world to strengthen its panel of global legal advisors, including Kevin De Haan QC, one of the world’s premier gaming law specialists. According to Chambers:
An internationally acknowledged expert in all aspects of e-commerce regulation, Kevin has been closely involved in the development of the online gambling industry from its inception in the 1990s to the present day, having advised most of the major (and many of the smaller) operators at some stage. He drafted the Gibraltar Gambling Act and advised on regulatory aspects arising from the floatation of offshore online gambling operators on the London stock markets. He is an expert on the law relating to all types of gambling, both land-based and remote.
So why can't other poker companies implement the same Sweepstakes model?
Our Patent: Global Poker has a comprehensive Patent Protection Pending on this unique business model. Global Poker’s parent company, VGW, invented it and currently being the only one to operate it.
Regulatory & Partner risks: Our competitors, particularly those with regulated gambling businesses, are generally reluctant to explore innovative models that are not considered “mainstream”. This extends to key marketing, distribution and payment processing partners (like Facebook and PayPal), who competitors would need to satisfy as to the legitimacy of their business model, a process which has taken Global Poker several years.
Technology & Operations: The technology required to operate a real money sweepstakes prize platform is very different to that of a virtual currency only game, requiring far more robust, secure and thorough gameplay and reporting functionality. Operations supporting real prize gaming are also very different to games companies, as the payments, fraud and customer service profiles are very different.
Can Global Poker’s Sweepstakes model apply to other gaming products?
Yes, it can apply to any game of chance: all casino games, sports gaming and lottery. Our Patent Pending applies to any and all such variations of the model.
See you at the tables at Global Poker !
Global Poker - making poker great again!