VGW has doubled down on its US focus as the sweeps operator confirmed its exit from Canada.
Canadian players of VGW’s Chumba Casino and Global Poker brands were informed that they will no longer be able to access their accounts as of 23 October. This includes both its real-money play and free-play gaming offerings.
A VGW spokesperson told Canadian Gaming Business: “We can confirm that following careful consideration, we’ve informed players of a decision to phase out our brands that offer products in Canada.
“We understand this is an adjustment after many years and our valued Canadian players may be disappointed. This decision wasn’t taken lightly and our focus is on ensuring players are fully informed about the changes, and that this transition is as smooth as possible.”
Concentrating resources
The spokesperson added that the company has made “a difficult but strategic, isolated decision” based on the size of its audience across North America.
“Our Canadian business is relatively small, as the vast majority of our players reside in the larger US market, where we will concentrate our management focus, resources and investment going forward,” they outlined.
Unlike the US, sweepstakes are deemed to be non-real-money gaming in Canada and permitted nationwide without regulatory oversight.
However, this decision underscores the value of the US market for VGW, as it has chosen to devote its North American resources towards fighting against the significant regulatory headwinds in the US.
States such as New Jersey, Montana and Connecticut have already passed legislation banning online sweepstakes gaming.
Meanwhile, regulators have targeted operators like VGW through cease-and-desist orders, leading to VGW halting its operations in a number of states, including New York, Connecticut and Delaware.
VGW remains defiant
These regulatory concerns were acknowledged by VGW’s Founder, Laurence Escalante, however, he remained defiant on VGW’s future as he successfully orchestrated a full takeover of the company earlier this year.
“We’ve operated in North America for more than a decade, creating not only great games, user experiences and entertainment but ensuring this is done safely, responsibly and at the highest level of standards – in line with our core value of ‘we do what’s right,” said Escalante.
“But we acknowledge that as our business and innovative industry has grown, external interest in what we do has increased, including how we support and engage in the communities where we operate.“
Underscoring VGW’s confidence in the US sweeps market, the company recently announced a new tribal partnership with the Kletsel Economic Development Authority (KEDA) to expand the availability of its social gaming platform across California.
This is despite lawmakers in The Golden State currently considering AB 831, a bill that seeks to criminalise sweepstakes gaming.
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