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Starting September 25, Canadian players will no longer be able to access Chumba Casino and Global Poker, as their parent company, Virtual Gaming Worlds (VGW), begins its exit from the Canadian market. Customers have been informed that they should redeem any remaining balances by October 23, marking the final deadline for transactions on these platforms.
In an email sent to players last week, the company confirmed the closure, stating, “We understand this is an adjustment after many years and our valued Canadian players may be disappointed. This decision wasn’t taken lightly and our focus is on ensuring players are fully informed about the changes, and that this transition is as smooth as possible.”
Timeline for Exit
The company has laid out a clear schedule for its Canadian users as it prepares to exit the market. Starting on August 28, players will no longer be able to purchase Gold Coins, but they can continue to use any existing Gold Coins and Sweeps Coins they have.
Then, on September 25, access to games on both Chumba Casino and Global Poker will cease entirely. Finally, customers will have until October 23 to redeem their Sweeps Coins for prizes, marking the last opportunity to cash in before the platforms close down.
“After careful consideration, we’ve made a strategic commercial decision guided by our business priorities. This allows us to focus our resources and investment in a way that supports the ongoing success of the business,” VGW added in its communication.
Continued Regulatory Pressure for VGW
VGW appears to be seeking to free itself from regulatory challenges, and the recent withdrawal from Canada is just one part of this effort. The company has already exited about a dozen US states, including New York and New Jersey, in response to tightening regulations on sweepstakes casinos.
New York’s introduction of legislation to ban such operations prompted VGW to leave in May, while the anticipated restrictions in New Jersey led to a similar exit.
As VGW goes through a significant corporate transition, it is moving toward becoming a privately held entity. Majority shareholder Laurence Escalante, who previously held a 70% stake, has secured approval to acquire the remaining shares. This buyout will see VGW registered in Guernsey, potentially reducing its tax and regulatory obligations. While VGW continues its operations in Australia, the unclear role of North America in its future strategy raises questions about the company’s focus and direction.
Source: YogoNet
