Sweepstakes Operator VGW Exits CT Online Gaming Market


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CT online gaming

Sweepstakes operator VGW is pulling out of the CT online gaming market eight months after receiving a cease and desist.

Australia-based VGW “respectfully disagrees” with the demand to exit Connecticut, a spokesperson said in a statement Friday to LSR.

“We have not taken this decision lightly and understand many of our valued players in Connecticut are disappointed they will no longer be able to play our much-loved online social games,” the spokesperson said. “We have communicated this change to our players in Connecticut and what it means for them and are 100 percent focused on continuing that communication throughout this process to ensure a smooth, fair and efficient transition.”

The Connecticut Department of Consumer Protection, which regulates CT online casinos in the state, confirmed through a spokesperson that VGW has stopped allowing users in Connecticut to make purchases. The company is now wrapping up operations with existing users, which the DCP is monitoring.

Still in Delaware despite letter

VGW has received other cease and desists from states, but its response has been inconsistent.

The company complied with the cease and desist sent by Michigan last December. But another, issued 10 months before that by Delaware gaming regulators, has gone unanswered.

Delaware is not listed among the states unavailable to VGW players and is still accepting new customers on all of its brands.

CT online gaming exit in ‘best interest’ of stakeholders

The VGW spokesperson said the company is confidence in its compliance with all laws and regulations where it operates. Part of the decision to exit Connecticut came down to protecting stakeholders as well.

“As we’ve repeatedly said, we actively monitor developments in the jurisdictions we operate in and constructively engaged with the relevant Connecticut authorities. We respectfully disagree with the Connecticut Department of Consumer Protection’s position and continue to believe that our social games are lawful in that state.

“However, we ultimately decided the course of action we’ve taken is in the best interests of all our stakeholders. We continue to offer our free-to-play games across most of North America, as we have for more than a decade, creating not only great games, user experiences and entertainment, but also ensuring this is done safely, responsibly and at the highest level of standards.

“We have full confidence in our compliance with all laws and regulations where we operate, and remain confident about the future.” 

VGW not in sweepstakes trade group

Ten sweepstakes operators joined together to form the Social and Promotional Gaming Association last month. VGW is not a member.

The group is committed to “protecting players, promoting responsible innovation, and advocating for clear regulations that allow the industry to flourish,” according to its mission statement.

Meanwhile, the American Gaming Association wrote a memo to ask regulators to take a closer look at sweepstakes operators.

Photo by Shutterstock/Faina Gurevich