Social and sweepstakes gaming behemoth VGW — the owner of Chumba Casino, LuckyLand Slots, and Global Poker — told Sweepsy that it has “informed players of a decision to phase out” its sweeps platform in New York.
“Our valued players in New York will still be able to enjoy all their favorite free-to-play games using Gold Coins,” a VGW spokesperson told Sweepsy, “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.”
VGW began sending out this news via email to its New York players over the weekend.
“But we understand this is an adjustment after many years and some players may be disappointed,” the spokesperson said. “This decision wasn’t taken lightly and was made at this time in the best interests of all our stakeholders.”
No new Sweeps Coins in New York starting June 2
This phase-out process will begin next month and end in August.
Starting June 2, players will no longer be able to get Sweeps Coins by any means — including daily login rewards, Gold Coin purchases, and participation in contests. Players also cannot mail in new requests for Sweeps Coins starting on this date. However, any remaining Sweeps Coins in players’ accounts can still be used until July 2.
Beginning July 2, gameplay using Sweeps Coins will be fully phased out. Also, from this date forward, mail-in submissions from New York requesting Sweeps Coins will no longer be processed. But players will still have the ability to redeem their existing Sweeps Coins until August.
Then, on Aug. 1, redemption of Sweeps Coins for prizes will no longer be possible under any circumstances.
Again: Nothing, however, will be impacted for VGW’s social gaming — using Gold Coins only — in New York.
‘We acknowledge increased interest in our innovative industry’
VGW is not the first sweeps operator to pull its sweeps operation out of New York.
Many have actually. High 5 Casino, Hello Millions, McLuck, and most recently Funzpoints are some of the more notable brands not in New York.
But VGW is certainly the biggest and most recognizable brand in this industry, and its departure is the most significant. It does not yet have New York listed on its excluded states for sweepstakes promotions in its terms of service, but the other states currently listed are: Connecticut, Delaware, Idaho, Michigan, Montana, Nevada, and Washington.
VGW considers itself as an industry leader for regulatory compliance and safe gameplay in the sweeps marketplace. It told Sweepsy that’s why it upped its minimum age requirement from 18 to 21 in February.
This decision stems from that same goal.
“VGW has operated in North America for more than a decade, creating not only great games, user experiences and entertainment but ensuring this is done safely, responsibly and at the highest level of standards,” the VGW spokesperson said of the company’s New York decision.
“As we’ve previously said, we acknowledge increased interest in our innovative industry that millions of Americans enjoy, and are committed to respectful engagement on establishing modern, appropriate regulatory structures that benefit players and states alike.”
What’s going on in New York?
Because sweepstakes casinos aren’t part of a regulated industry, there’s no public breakdown of their revenue by state. Still, it’s reasonable to believe that major states like New York, California, and Texas generate a significant share of the profits.
That’s why VGW pulling out of New York — despite no official legal action or newly filed legislation — signals just how seriously it takes long-term compliance risks. It’s a strategic decision aimed at staying viable in a key market where social gaming can still generate revenue and there’s perhaps a regulatory future for sweeps down the line.
Since March, online sweepstakes gaming platforms have exited New York following the introduction of a bill by Sen. Joseph Addabbo aimed at banning the industry in the state.
That same month, the Social and Promotional Games Association (SPGA) issued a detailed statement explaining that its member companies were reevaluating their presence in New York in light of “ongoing constructive conversations with state officials.”
“Each SPGA member will decide on the best course of action based on individual legal counsel and business strategy,” the statement said, emphasizing the industry’s broader goal of working collaboratively with regulators to establish clear guidelines for sweepstakes-style promotional games.
VGW is not an SPGA member (it’s a member of the newly formed Social Gaming Leadership Alliance), but the SPGA’s sentiment is still relevant for all sweeps operators evaluating their future in New York.
However, it should be noted that Addabbo’s bill hasn’t budged since April 30. A duplicate bill in the Assembly, Assembly Bill 6745, has a committee hearing scheduled for May 28. Still, New York’s legislative session ends June 12, so AB6745 — which would ban online sweepstakes gaming in New York — has a lot of steps to go through with likely not enough time. It still hasn’t passed through the Assembly committee stage.
