Share 
U.S. District Judge Araceli Martínez-Olguín denied VGW Holdings’ bid to compel arbitration on September 18 in a Northern District of California lawsuit brought by spouses of people who allegedly lost money on its casino and poker apps.
The court also denied motions to dismiss for lack of subject-matter and personal jurisdiction, according to Deadspin’s report. The Ninth Circuit docketed a notice of appeal on October 6.
Why the spouses were not bound to arbitration
The plaintiffs in Brown v. VGW Holdings US Inc., No. 4:25-cv-07071, seek to recover money their spouses allegedly lost on Chumba Casino, LuckyLand Slots and Global Poker. Their claims invoke state gambling-loss statutes and California’s Unfair Competition Law.
VGW argued that equitable estoppel should bind the plaintiffs to arbitration agreements their spouses signed. Relying on the Ninth Circuit’s decision in Comer v. Micor, Inc., the court found that the plaintiffs had not knowingly exploited agreements they never signed.
The complaint was filed on August 20, 2025, as a putative class action. Four plaintiffs remain: John Brown, Trena Ostlund, Zachary Parker and Eve Fields. Three others voluntarily dismissed their claims without prejudice.
The ruling addresses arbitration and jurisdiction, rather than establishing liability for the alleged losses.
California jurisdiction and the appeal
The court found no general jurisdiction over the VGW U.S. entities because they were not at home in California. It nevertheless found specific jurisdiction, citing alleged ongoing contracts between VGW and four partner defendants described in the order as California entities: Jumio, Yodlee, Trustly and Brian Christopher Misfud.
Defendants also include VGW founder Laurence Escalante and several VGW entities.
The appeal is docketed as Ninth Circuit No. 26-6577. Under the reported briefing schedule, the opening brief is due December 24, 2026, and the answering brief is due January 25, 2027.
If you or someone you know has a gambling problem, call the California Problem Gambling Helpline at 1-800-GAMBLER (1-800-426-2537), 24/7.
—
Source: As reported by Deadspin.
