Sweepstakes gaming operator VGW Holdings is exiting the New York market.
The company operates the Chumba Casino, LuckyLand Slots, and Global Poker gaming platforms. However, those options won’t be available to New Yorkers beginning Aug. 2.
The move comes as sweepstakes casinos face more scrutiny from legislators. Additionally, several lawsuits allege sweepstakes operators violate state gaming laws. Montana recently became the first state to make sweepstakes casinos illegal.
VGW plans to phase out the company’s operations in the Empire State. The process starts on June 2 and the company will completely exit the Empire State on Aug. 1. The company has already begun informing users about the changes.
“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 VGW spokesperson told Sweepsy.com. “But we understand this is an adjustment after many years and some players may be disappointed. This decision wasn’t taken lightly and was made at this time in the best interests of all our stakeholders.”
Latest Chapter In Sweeps Crackdown
As seen in some other states, New York legislators have moved to ban sweepstakes operators. It’s part of a broader effort to legalize traditional real-money online gambling.
“We have these online sweepstakes casinos that basically look a lot like casino games, but they go unregulated,” said Sen. Joseph Addabbo, backer of the legislation and a key pro-gambling lawmaker.
Addabbo’s bill would keep financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates from helping operators serve New York customers. The bill includes fines ranging from $10,000 to $100,000 per violation. Additionally, it could result in the loss of a gaming license.
Because of the proposed legislation, several other sweepstakes operators have also left the state. Global Poker had become especially popular among card players who may not have had the option of legalized online poker in their states.
VGW recently raised the minimum age to use the platforms and has expressed interest in oversight for the industry, such as that recently proposed in New Jersey.
“As we’ve previously said, we acknowledge increased interest in our innovative industry that millions of Americans enjoy,” VGW noted, “and are committed to respectful engagement on establishing modern, appropriate regulatory structures that benefit players and states alike.”
