What the business is
Virtual Gaming Worlds is a Perth-based gaming startup building Chumba World, a multiplayer online casino game for Facebook.
The bet
Facebook players will build and run their own casinos in an MMO where play money converts to real cash — and VGW takes a cut of the house's winnings
Starting capital
AU$2.5 million (US$2.6 million) Series A led by Triple C Consulting, a boutique investment firm in Perth
How it started
Virtual Gaming Worlds set out to crowdfund Chumba World, its 'SimCity meets Vegas' MMO casino for Facebook, with a $50,000 Kickstarter campaign — a project it says was reviewed three times before approval.
What happened
Four days after launch, Kickstarter suspended the campaign without explanation; the platform declined to comment, citing legal and privacy reasons. Four weeks later VGW closed an AU$2.5 million Series A led by Triple C Consulting instead. The Next Web noted the extra publicity around the controversy almost certainly boosted the company's profile and helped its pursuit of cash.
What has to be true
Kickstarter suspended the campaign four days in, without explanation, cutting off the intended funding path.
The team pivoted to venture capital within four weeks, closing an AU$2.5M round led by Triple C Consulting.
The suspension controversy generated publicity that, TNW noted, almost certainly helped the raise.
Real-money social gambling was drawing VCs and top games firms in 2013: Facebook-888, Gamesys-Virgin Games and Zynga all moved.
What can be applied
A platform rejection is not a death sentence: the controversy made the story travel, and a suspended crowdfunding campaign became proof of demand in front of investors.
Aftermath
As of the March 18, 2013 report, the funding was earmarked for securing a gambling license, marketing on Facebook and building a dedicated mobile version, with new features planned to let players monetize their casinos. Chumba Casino had 10 games live; TNW's own test could not load the service past 50 percent.
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