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One of the biggest names in sweepstakes gaming is shifting its strategy, and it’s a sign of how quickly the landscape is changing in the US.
Social casino giants step back from dual currency play
VGW has confirmed that its Chumba Casino, Luckyland Slots, and Global Poker brands will soon stop offering Sweeps Coins in Mississippi and New Jersey.
This move effectively ends the dual currency model, combining Sweeps Coins and Gold Coins, in both states, transitioning the operator toward a pure social casino experience.
It’s a significant change for the Australia-based company, which helped popularise the sweepstakes gaming model across the US.
Regulators in Mississippi force VGW’s hand
The shift wasn’t entirely voluntary.
VGW’s decision came shortly after it received a cease-and-desist letter from the Mississippi Gaming Commission, which objected to the way Sweeps Coins are used within its platform.
In an email to users, VGW explained that the change was “carefully considered based on several business factors,” and reassured players they could continue enjoying all their favourite games using Gold Coins, the site’s entertainment-only, non-redeemable currency.
New Jersey legislation adds further pressure
And Mississippi isn’t the only state tightening the screws.
In New Jersey, Bill A5447, aimed at banning sweepstakes casinos, has already passed through the state’s legislature. That push is gathering pace, the state is now on the brink of enforcing its sweepstakes casino ban under AB5447, following swift legislative approval. If Governor Phil Murphy does not act before 14 August, the bill will automatically become law.
As a precaution, VGW has already begun winding down Sweeps Coin functionality. Collection ends today (29 July), game access will be cut off by 26 August, and final redemptions will close by 24 September.
A timeline for phase-out across both states
Players will need to act fast if they want to use their remaining Sweeps Coins.
Here’s how the transition will roll out in each market:
Mississippi
- 31 July – Last day to collect Sweeps Coins
- 14 August – Last day to play games with them
- 4 September – Final deadline for redemptions
New Jersey
- 29 July – Collection ends
- 26 August – Play ends
- 24 September – Final redemptions close
All other Sweeps Coin distribution methods, login bonuses, contests, purchases, and mail-in requests, will be discontinued. After the final redemption date, the feature will be entirely removed.
A wider strategy shift for VGW
This isn’t about two states, it’s part of a broader strategic rethink.
VGW is responding to increased scrutiny of the sweepstakes casino model nationwide. A similar bill, AB831, is already gaining ground in California, supported by tribal gaming interests and advancing through early legislative stages. The bill just cleared a key Senate committee, putting California one step closer to banning dual-currency sweepstakes casinos statewide.
To stay ahead of further challenges, VGW has raised its minimum player age to 21, started charging sales tax on Gold Coin purchases in several states, and launched a new trade body, the Social Gaming Leadership Alliance (SGLA), to advocate for its position in the market.
What’s next
All signs point to a company preparing for long-term survival.
Earlier this year, VGW owner Laurence Escalante made a bid to buy out minority shareholders in a deal worth A$3.2 billion (€1.8bn). That move, combined with recent policy updates and structural changes, signals a clear intention: VGW is consolidating, adjusting, and preparing for the next chapter of regulated social gaming in the US.
Source: Gambling Insider
