Social and sweepstakes gaming giant Virtual Gaming World (VGW) is winding down its online sweepstakes gaming offerings in New York.
The company behind brands including Chumba Casino, LuckyLand Slots and Global Poker told its players in the Empire State that it is phasing out its Sweeps Coins offerings in the state. It will completely shut down those offerings by August.
Starting June 2, players will no longer be able to amass Sweeps Coins by any means, whether that is through daily rewards, Gold Coin purchases or other avenues. Any remaining Sweeps Coins in players’ accounts can still be used until July 2, at which point Sweeps Coins will be fully abandoned.
Players will still have the ability to redeem their existing Sweeps Coins until Aug. 1. The staggered shutdown does not affect VGW’s social gaming using Gold Coins only.
“Following careful consideration, we’ve informed players of a decision to phase out Promotional Play (sweepstakes promotions) in the state of New York,” a VGW spokesperson told SBC Americas on Monday. “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.”
VGW is following competitors including High 5 Casino, McLuck and Hello Millions, which shu down sweeps operations in New York earlier this year. The company already does not offer the vertical in states including Connecticut, Michigan, Nevada and Washington.
New York one of many states to scrutinize sweeps
New York is one of numerous states to introduce anti-sweepstakes legislation this year.
Sen. Joseph Addabbo filed a bill in March that defines an online sweepstakes game as an online contest or promotion that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash price, cash award or cash equivalents.”
His bill, and its Assembly counterpart, would amend New York law to ban online sweeps, including those that simulate casino-style games, video poker, bingo, lottery games or sports betting, as well as draw contests, keno and instant-win games. In addition to operators, suppliers, payment processors, geolocation providers and other affiliates would be prohibited from helping to facilitate sweeps play.
The bill also would give the New York State Gaming Commission (NYSGC), as well as law enforcement, the authority to conduct investigations and issue cease-and-desist orders to entities that fail to adhere to the bill.
Addabbo’s bill, with an amendment, is awaiting a vote on the Senate floor before New York’s legislative session ends on June 12.
The Social and Promotional Gaming Association (SPGA), of which VGW is not a member, said in a statement earlier this yeah that its members were reevaluating their presence in New York amid “ongoing constructive conversations with state officials.” VGW is a founding member of a second sweepstakes and social casinos coalition, the Social Gaming Leadership Alliance (SGLA).
VGW exits several markets
New York is the latest state in a run of several in which VGW has shut down its sweepstakes platform in recent months.
The company pulled out of Connecticut last October, shut down its Global Poker operations in Nevada in January and left Delaware in April. Those states, and others, including Maryland, issued cease-and-desist orders to VGW as well as other sweepstakes operators.
SBC Americas reached out to the NYSGC to ask whether New York’s regulator had sent a similar notice to VGW, but had not heard back at the time of writing.
“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,” added the VGW spokesperson.
