VGW is preparing to pull its sweepstakes gaming offering from New York.
Operator of brands such as Chumba Casino, LuckyLand Slots and Global Poker, VGW informed players in the Empire State that it is winding down the Sweeps Coins section of its offering.
Beginning 2 June, players will no longer be able to amass Sweeps Coins and any remaining Sweeps Coins players hold can be used until 2 July. Players will then have until 1 August to redeem any remaining Sweeps Coins.
A VGW spokesperson told iGaming Expert: “We understand this is an adjustment after many years, and some players may be disappointed. This decision wasn’t taken lightly and was made at this time in the best interests of all our stakeholders.”
Despite closing down its sweepstakes operation, VGW will still maintain a presence in the Empire State through its free-to-play games.
Throughout the last year, sweepstakes casinos have faced intense pressure from lawmakers and regulators.
Last week, Montana became the first US state to explicitly ban online sweepstakes casinos after Gov. Greg Gianforte signed into law SB 555.
Meanwhile, in New York, Sen. Joseph Addabbo filed a bill which targets dual-currency sweepstakes gaming systems, seeking to prohibit their operations, as well as target financial institutions, payment processors, geolocation services, gaming platforms and media affiliates associated with the vertical.
The exit of VGW follows suit competitors such as High 5 Casino, McLuck and Hello Millions, which all shut down sweeps operations in New York earlier this year.
Given the scrutiny faced by sweepstakes casinos, VGW has also shut down its sweepstakes platforms in several other states in recent months.
The company pulled out of Connecticut last year, shut down its Global Poker operations in Nevada in January and left Delaware in April. Each of these states, as well as Maryland, issued cease-and-desist orders to VGW and other sweepstakes operators.
“We acknowledge increased interest in our innovative industry that millions of Americans enjoy, and are committed to respectful engagement on establishing modern, appropriate regulatory structures that benefit players and states alike,” said the VGW spokesperson.
The action against sweepstakes and the subsequent exit of New York by VGW marks a significant blow for the operator, given the volume of players that are available in the state.
In 2024, no US state took more money in sports bets or reaped more in wagering tax revenue. A total of $22.6bn was wagered in New York, and gross gaming revenue topped out at just over $2bn.
However, VGW maintaining its presence in the state through its social casino does leave an avenue for it to re-establish its sweepstakes promotions if the attitudes of lawmakers and regulators change.
