VGW to end sweepstakes casino operations in New York amid regulatory uncertainty

Virtual Gaming Worlds (VGW), the Australia-based parent company of Chumba Casino, LuckyLand Slots and Global Poker, said it will terminate its sweepstakes operations in New York, joining a growing list of operators exiting the state ahead of potential legislative restrictions.

Players will be able to acquire and use Sweepstakes Coins until June 2, with redemptions permitted through August 1, VGW said. The company’s free-to-play Gold Coin games will remain available.

“We’ve informed players of a decision to phase out Promotional Play (sweepstakes promotions) in the state of New York,” a VGW spokesperson said. “Players will still be able to enjoy all their favorite 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.”

VGW’s withdrawal follows a broader trend, with over a dozen sweepstakes casino operators — including High 5, Zula, Fortune Coins and McLuck — having exited New York earlier this year. The moves come as state lawmakers advance two bills aimed at banning the unregulated sweepstakes gambling model.

Senate Bill S5935A reached a third reading in March, while its companion, Assembly Bill A6745A, has advanced to the Codes Committee. The legislative session is set to adjourn on June 12.

Though no ban has yet been enacted, the company’s decision reflects a cautious response to mounting regulatory momentum. Montana became the first U.S. state to officially outlaw sweepstakes casinos, and similar legislation is under consideration in other jurisdictions.

VGW has also ceased operations in several other states, including Delaware, where it exited after receiving a second cease-and-desist order from the state’s Division of Gaming Enforcement. The company previously withdrew from Nevada, Connecticut, Washington, Michigan, and Idaho.

“VGW stands by its online, casino-themed, free-to-play social games and sweepstakes promotions and continues to believe they comply with Delaware law, as well as the laws of all other jurisdictions in which those games continue to be offered," the company said in a statement.

Despite disagreements over regulatory interpretations, VGW has generally complied with state actions and appears to be positioning itself for potential future licensing under regulated gaming frameworks. In February, the company raised its minimum player age to 21, aligning it with conventional online casinos.

VGW is also a founding member of the newly formed Social Gaming Leadership Alliance (SGLA), a trade group established to advocate for the industry and promote responsible innovation.

The sweepstakes gaming model has come under increased scrutiny as it allows players to purchase virtual coins — often with real money or cryptocurrency — which can then be exchanged for cash or prizes, operating outside of traditional gambling regulations.