VGW withdraws sweepstake casino operations from New York ahead of bill
As regulations tighten around New York, VGW has emailed customers to let them know about upcoming deadlines to the online sweepstake casinos.
Key points:
– VGW Holdings is winding down sweepstakes operations in New York
– New York is currently processing the SB 5935 Bill to ban sweepstakes casino
– This will affect Chumba Casino, Luckyland Slots and Global Poker
VGW Holdings, the company behind sweepstakes brands such as Chumba Casino, Luckyland Slots, and Global Poker, has confirmed it is leaving the state of New York.
In a statement to Gambling Insider, a VGW spokesperson said: “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.
“Our valued players in New York will still be able to enjoy all their favourite free-to-play games using Gold Coins, and we are 100 percent focused on ensuring players are fully informed about the changes, and that this transition is as smooth and seamless as possible.”
Sweepstakes casinos operate on a duel-currency system, with the Sweeps Coins being part of the process to redeem cash prizes; while the Gold Coins remain in the game to be used for the casino games.
From 2 June, players will no longer be able to collect Sweeps Coins through any method, including postal requests.
Players will have one month from this date to play through any Sweeps Coins to complete withdrawal requirements, before being frozen on 2 July.
On 1 August, players will be unable to redeem any Sweeps Coins for prizes.
This move comes as Joseph Addabbo Jr.’s SB 5935 Bill continues to progress through the Senate that would prohibit online sweepstakes games and revenue from illegal markets.
While it’s gained support from many in the Senate, The Social and Promotional Games Association (SPGA) recently released a statement claiming that this “doesn’t fix anything”.
Good to know: The S5935 Bill would prohibit anyone from “operating, conducting, or promoting certain online sweepstakes games or supporting the operation, conduct, or promotion of such games” while also granting “authority to the New York State Gaming Commission and the Attorney General to enforce penalties against violators”
The spokesperson continued: “But 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.”
VGW has 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.”
“As we’ve previously said, 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.”
This development comes at a time when many states are beginning to crack down on sweepstakes casinos and other non-regulated platforms.
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