for early access to the latest igaming videos!
and get the latest igaming news first!
VGW Holdings, one of the biggest sweepstakes gaming operators in the US, continues to lose ground in the country as it announces plans to cease its sweepstakes operations in New York.
The social gaming giants, who are behind popular platforms like Global Poker, Chumba Casino, and LuckyLand Slots, are not the first operators to leave New York as the state continues to fight against what it believes to be illegal online gambling. Lawmakers have already introduced a new bill to ban the vertical, with the comprehensive proposal also targeting both suppliers and payment processors.
According to reports from Sweepsy, VGW communicated its decision to leave the Empire State via an email to New York-based users over the weekend. The company confirmed in the email that while its sites will still remain operational in the region, players would only be able to play free-to-play games with Gold Coins. All functions related to Sweeps Coin will be removed.
“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 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,” a spokesperson for the company told ReadWrite.
Phase Out to Begin June
VGW’s decision to phase out its sweepstakes operations in New York will take effect starting June 2, with plans to complete the process by August 1.
In the email, the company outlined the timeline for these changes, stating that beginning in June, users will no longer be able to earn Sweeps Coins through any method, including daily login bonuses, Gold Coin purchases, or promotional contests.
Players can continue to use any Sweeps Coins already in their accounts for gameplay until July 2. After this date, gameplay using Sweeps Coins will be completely halted, and VGW will stop processing mail-in requests for these coins. However, players will still have the opportunity to redeem any remaining Sweeps Coins for prizes until the end of July.
Despite these changes, the company has assured players that access to free-to-play games using Gold Coins will remain unaffected. VGW is also “100 percent focused on ensuring players are fully informed about the changes” and that the process will be as seamless as possible.”
New York Pushes Back Against Sweeps Operators
The Empire State has always been clear on its anti-gambling stance. In March, Senator Joseph Addabbo introduced Senate Bill S5935, which seeks to explicitly ban sweepstakes-style gaming in the state. It also proposes severe penalties for defaulters, including loss of gaming license.
The growing legal pressure has prompted multiple sweepstakes casinos to exit the New York market. High 5 Casino was one of the first to act, halting new sign-ups and transactions as early as March 27. Following this, other platforms such as Hello Millions, Real Prize, and SpinBlitz have since announced plans to withdraw from the state.
The Social and Promotional Gaming Association (SPGA), which represents some operators but not VGW, has voiced opposition to these legislative efforts, calling for more discourse rather than an outright ban. Meanwhile, VGW recently partnered with other operators to create a new trade group for sweepstakes gaming called the Social Gaming Leadership Alliance (SGLA).
New York will make the seventh state VGW has pulled out from, following decisions to leave Connecticut, Delaware, Idaho, Michigan, Montana, Nevada, and Washington. It will now focus on promoting its free-to-play games while watching developments in the regulatory landscape.
Source: Next.io
