VGW Holdings, the company behind popular sweepstakes gaming platforms like Chumba Casino, LuckyLand Slots, and Global Poker, has announced plans to exit the New York market.
This move is part of a broader strategic retreat from U.S. states where regulatory scrutiny of social and sweepstakes casinos is intensifying, despite some minor wins in legal disputes.
Over the weekend, VGW notified its New York users via email (as reported by Sweepsy) that while free-to-play games using Gold Coins will still be available, all Sweeps Coins-related features will be phased out.
The wind-down begins on June 2, when players will no longer be able to obtain Sweeps Coins, whether through purchases, bonuses, promotions, or mail-in options. Any mail requests received after this date will be ignored. Users can continue to play using existing Sweeps Coins until July 2, after which gameplay will end. Prize redemptions will be allowed until August 1, after which all Sweeps Coin functionality will be fully disabled.
A VGW spokesperson emphasized their commitment to keeping users informed and ensuring a smooth transition.
VGW’s exit from New York follows a trend, as several other operators, such as High 5 Casino, Hello Millions, McLuck, and Funzpoints, have already left the state amid legal uncertainties. This shift is largely driven by a bill introduced in March by State Senator Joseph Addabbo that aims to explicitly ban sweepstakes-style gaming in New York, a response to long-standing concerns over the unregulated nature of such platforms in states lacking online gambling legislation.
The Social and Promotional Gaming Association (SPGA), which represents many sweepstakes gaming firms but not VGW, has opposed the bill, defending the model as a low-risk entertainment alternative. Nonetheless, their lobbying efforts in New York have yet to reverse the wave of operator departures.
VGW had previously shut down operations in Connecticut, Delaware, Idaho, Michigan, Montana, Nevada, and Washington. Its withdrawal from New York marks another significant retreat, underscoring growing national pressure on the sweepstakes casino model.
The company has not said whether it plans to return to New York in the future, focusing instead on compliance and assisting users during the transition.
