VGW, one of the largest online sweepstakes casino operators, will pull out of New York.
VGW sent customers an email recently stating it will pull out of New York this summer. Sweepsy first reported the news.
VGW is the parent to platforms Chumba Casino, LuckyLand Slots and Global Poker. The exit follows multiple other online sweepstakes casino operators, including High 5, in March.
VGW sweepstakes casino exit
In the email to customers, VGW said it will allow users to acquire and use Sweepstakes Coins until June 2.
Sweepstakes play will then cease Aug. 1, after which users will no longer be able to redeem coins.
VGW has also left other states, including Connecticut, Delaware and Nevada.
Increasing legal pressure
The operator exits from New York could be due to momentum from bills prohibiting sweepstakes casinos. Bills in both the Senate and General Assembly have advanced from their committee of origin but have not passed their initial chambers. The session adjourns June 12.
“Whenever you go into the arena of gaming, you want to make sure it’s regulated so it’s a safe product for New Yorkers,” Sen. Joe Addabbo, chair of the Senate Racing, Gaming, and Wagering Committee, told LSR before the session. “It’s really about ensuring it’s a safe product. Sweepstakes, they’ve gotten around a loophole, but if you use money to buy the coins and it equates to greater cash prizes, that’s gambling.”
Several state legislators failed to pass sweepstakes prohibition bills, including Mississippi and Maryland, despite early momentum. Montana became the first state to enact a prohibition last week.
New sweepstakes association
This month, VGW led the creation of the Social Gaming Leadership Alliance.
The group looks to help inform and influence public and legal opinion of sweepstakes casinos. SGLA listed free-to-play and responsible innovation among its key principles.
The group is different than the Social and Promotional Games Association, another social sweepstakes casino industry group.
