NY Gaming Sweepstakes Withdrawal Announced by VGW
VGW Holdings Limited to Phase Out Sweepstakes Gaming in New York
Sweepstakes giant VGW Holdings Limited has announced it will be pulling its offerings from New York this summer, marking the latest move by operators to exit the state as lawmakers mull a potential ban on dual-currency sweepstakes games.
Beginning June 2, customers of the company's popular social sweepstakes brands, including Chumba Casino, Luckyland Slots, and Global Poker, will no longer be able to acquire sweepstakes coins through any means. Remaining sweepstakes coins will be frozen on July 2, giving customers a month to play through their balances.
Accounts will remain active until August, allowing customers one final month to redeem any sweepstakes coins won for prizes. From Aug. 1, players will no longer be able to redeem sweepstakes coins. However, the company emphasized that free-to-play games will remain available in New York.
A VGW spokesperson noted that the decision was reached after careful consideration and was in the best interests of all the company's stakeholders. The spokesperson acknowledged that the decision would be an adjustment for long-time players, and some may be disappointed.
The move by VGW follows a similar exit by other operators, including High 5 Casino, McLuck, and several others. The company's departure comes as New York lawmakers consider Senate Bill 5935, which aims to ban online sweepstakes games that utilize a dual-currency system and simulate casino-style gaming.
The bill, introduced in March by Sen. Joseph P. Addabbo Jr. (D-15), has been approved in committee and is currently on the New York Senate floor calendar. If passed, the bill would set fines of a minimum of $10,000 or a maximum of $100,000 for operators or affiliates offering a sweepstakes casino game in the state or accepting revenues from a sweepstakes casino company.
If you wish to stay updated on the latest sports betting news, analysis, picks, betting trends, and relevant data, we invite you to subscribe to our newsletter. By clicking the checkbox, you consent to having your email address processed to send you marketing communications and newsletters. You can opt-out at any time by clicking the "unsubscribe" link at the end of each communication received. For more information, please see our privacy notice, available here.
In light of the potential ban on dual-currency sweepstakes games, sports betting operator VGW Holdings Limited is set to withdraw from New York, marking a transition from sports sweepstakes to sports betting, as they reassess their strategy with wagers and lines. The company's departure leaves a stake for other operators in the sports betting market, such as High 5 Casino and McLuck, to reconsider their positions in the state.
