New York market witnesses adjustments in VGW's business operations due to intensified sweepstakes enforcement
In response to escalating regulatory scrutiny, online gaming company VGW has decided to phase out its Sweeps Coins offer in New York while continuing to provide Gold Coins for free gameplay.
This action follows similar moves by other operators in the sector, as concerns grow over the legal status of sweepstakes social casinos in the United States. The American Gaming Association, along with lawmakers and traditional gambling companies, have accused these platforms of skirting rules and offering unlicensed gambling.
VGW, the operator of popular platforms such as Chumba Casino, LuckyLand Slots, and Global Poker, has vehemently denied these allegations, stating they are misplaced in the current regulatory climate. In a statement, the company confirmed it would be discontinuing its Sweeps Coins offer in New York, but emphasized that players could still enjoy free games using Gold Coins.
The withdrawal of Sweeps Coins, starting on June 2, means that players in the state will no longer be able to collect daily Sweeps Coins. Any remaining Sweeps Coins can be used until July 2, when all remaining gameplay will be shut down. Players will have until August 1 to redeem any remaining unredeemed Sweeps Coins.
VGW has been facing increasing resistance in states taking a hardline approach against the sector, with withdrawals already made in places like Washington, Montana, Michigan, Nevada, Delaware, Connecticut, and others.
In an effort to address the ongoing regulatory challenges, VGW recently founded the Social Gaming Leadership Alliance (SGLA), a trade organization aimed at promoting the facts about sweepstakes social casinos and countering the opposition from traditional gambling companies.
Sweepstakes casinos, including those operated by VGW, operate using virtual currencies like Sweeps Coins and Gold Coins, which are not considered legal tender, thus allowing them to operate under sweepstakes laws. Players can use Sweeps Coins to participate in games and win real cash prizes, with 1 Sweeps Coin being equal to $1. Gold Coins are used for gameplay but do not have a direct cash value and are often used in combination with Sweeps Coins. Both currencies are legal in New York as they do not violate any gaming laws.
- As regulators increase their scrutiny of sweepstakes social casinos, VGW, like other operators, is navigating the legal landscape by phasing out Sweeps Coins in certain states, such as New York, while continuing to offer Gold Coins for free gameplay on platforms like Chumba Casino and LuckyLand Slots.
- In light of the ongoing debate over the legality of sweepstakes social casinos, VGW recently established the Social Gaming Leadership Alliance (SGLA) to advocate for the industry and counter the opposition from traditional gambling companies, emphasizing that virtual currencies, such as Sweeps Coins and Gold Coins, help these platforms operate within the bounds of sweepstakes laws while offering players the chance to win real cash prizes.
