VGW, the group behind Chumba Casino, LuckyLand Slots, and Global Poker, announced that it will be phasing out its sweepstakes casino games for New York players.
“We can confirm that following careful consideration, we’ve informed players of a decision to phase out Promotional Play (sweepstakes promotions) in the state of New York,” a VGW spokesperson said.
From June 2, the platforms will no longer issue Sweeps Coins, and then in July, users will no longer be able to play games with any coins they still have in their accounts. From August 1, the redemption of coins for prizes will no longer be possible.
Players will, however, still be able to play free-to-play games on the sweepstakes casino platforms. In an email distributed to New York registered players, VGW stated, “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.”
New York bill forcing operators to exit
VGW took the decision to limit its operations in New York following the progress of a bill that aims to prohibit sweepstakes casinos. Sen. Joseph Addabbo’s SB5935 was recently amended to give the state’s regulator control over what is defined as a dual-currency system.
As the bill has gained support, several sweepstake operators have exited the state. High 5 Games, Hello Millions, McLuck, Funzpoints, RealPrize, and Zula all withdrew their operations last month.
The Social and Promotional Gaming Association (SPGA) criticized the bill and the latest amendment, stating, “This amendment is a clear acknowledgment that this anti-business bill needlessly threatens New York’s economy. But this amendment doesn’t fix anything.
“Lawmakers wouldn’t be amending the bill if it didn’t need amending. New York legislators are publicly admitting the bill was flawed, and other states like Louisiana should take note before making the same mistake. This was already bad legislation. Lawmakers have taken a mess and made it into a catastrophe.”
VGW is not a member of the SPGA, but has now formed its own lobby group, the Social Gaming Leadership Alliance (SGLA), which will also campaign for sweepstakes and social casino legality.
SB5935 is yet to be approved, however, and faces the approaching deadline of June 12, when the New York legislative session ends, to make it into law. A duplicate bill in the Assembly, AB6745, has a committee hearing scheduled for May 28.
VGW withdrawn from 8 states
New York is the latest state in a growing list for VGW to pull its operations. The operator has already withdrawn from Connecticut, Delaware, Idaho. Michigan, Montana, Nevada, and Washington due to legal scrutiny.
The size of the gambling market in the Empire State could have a big impact on company profits. New York online casinos generated an estimated $4.3 billion in revenue last year despite not officially being legalized. Only in Pennsylvania was that figure higher at over $5 billion, but that is a combination of sweepstakes operators and regulated online casinos.
In the fiscal year ending June 30, 2024, VGW reported over $4 billion in revenue, up from $3.1 billion the previous year. The company also posted profits of $323.5 million for the same period, but may find it hard to replicate those numbers as more and more states clamp down on its operations.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling.
