Leading sweepstakes casino operator Virtual Gaming Worlds (VGW) has stopped operating in Connecticut after complying with a cease-and-desist letter sent by the Connecticut Department of Consumer Protection (DCP) in February.
In the letter, the DCP accused VGW of conducting unlicensed gambling in violation of state law and fair trade practices.
“Following careful consideration and analysis, we have made the decision to no longer offer our products in the state of Connecticut,” a VGW spokesperson confirmed to SBC Americas. VGW also confirmed it has communicated the withdrawal to its players.
The DCP told SBC Americas that VGW had confirmed its plans to exit the state in August.
“We have not taken this decision lightly,” added the spokesperson. “As we’ve repeatedly said, we actively monitor developments in the jurisdictions we operate in and constructively engaged with the relevant Connecticut authorities. We respectfully disagree with the Connecticut Department of Consumer Protection’s position and continue to believe that our social games are lawful in that state. However, we ultimately decided the course of action we’ve taken is in the best interests of all our stakeholders.”
Australian-based VGW is the largest operator in the U.S. sweepstakes casino space and offers brands including Chumba Casino, Luckyland Slots and Global Poker in several U.S. states. Research conducted by Eilers & Krejcik suggests that VGW holds approximately 50% market share for its online sweepstake products, down from a peak of 90% in 2020.
It continues to offer free-to-play games across most of North America.
“We have full confidence in our compliance with all laws and regulations where we operate, and remain confident about the future,” concluded the spokesperson.
VGW hit with crackdown as states continue to brush off sweeps
It has faced a raft of enforcement and legal action in recent times. Last December, the Michigan Gaming Control Board ordered VGW to cease operations of its sweepstakes in the Wolverine State, joining regulators in Idaho and Washington. VGW is now barred from not only Connecticut but also Montana, Idaho, Michigan and Washington.
The Delaware Division of Gaming Enforcement confirmed to SBC Americas earlier this year that it sent a cease-and-desist letter to the operator way back in February 2023. However, as of the time of writing, the company does not indicate that it does not service Delaware residents.
The actions against VGW come amid increased scrutiny on sweepstake operators in the U.S.
The American Gaming Association issued a memo in August calling for a stronger crackdown on sweepstakes-based gaming offerings and urging state attorney generals and regulators to investigate the businesses to ensure their compliance with the law.
Amid that backdrop, several leading social and sweepstakes gaming operators banded together to launch the Social and Promotional Gaming Association. However, VGW was not listed among the organization’s membership.
