Virtual Gaming Worlds (VGW) will stop offering all of its sweepstakes promotions in New Jersey after the passage of a bill to ban the products.
VGW’s sites generally offer both dual-currency sweeps play and single-currency social play, the latter of which uses only Gold Coins rather than both Gold Coins and Sweeps Coins. Gold Coins can be purchased with real money but cannot be redeemed for real money.
The operator of Chumba Casino, LuckyLand Slots and Global Poker confirmed to SBC Americas that it has told players on its sites that it is phasing out sweeps play in the Garden State. Gold Coins-only play will not be affected.
“Our valued players in New Jersey will still be able to enjoy all their favorite free-to-play games using Gold Coins, and we are 100% focused on ensuring players are fully informed about the changes and that this transition is as smooth as possible,” said a spokesperson. “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 in the best interests of all our stakeholders following recent decisions by legislators.”
Legislation changes the landscape
The biggest and most relevant of those recent decisions is A5447, the ban on sweepstakes casinos that passed both houses of the state legislature on June 30, just before the July 1 budget deadline. The bill is awaiting Gov. Phil Murphy’s signature before it can be enacted.
The New Jersey ban targets any form of online gaming operation with a dual-currency system and includes specific carve-outs to ensure that fast food companies and retailers can still run their own promotional contests that do not require an entry fee. It also criminalizes the promotion of sweepstakes operators in the state.
Some operators such as High 5 Casino already left the New Jersey market before the bill was passed. Now, although VGW isn’t pulling the plug entirely, it’s shifting its operations.
“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 told SBC Americas.
“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 and taxation structures that benefit players and states alike. That remains the case in New Jersey, as it does in all states.”
Once VGW’s Sweeps Coins are off the market in New Jersey, the company will have ceased offering sweeps play in many U.S. jurisdictions including Connecticut, Montana and New York, all of which have banned sweepstakes casinos this year. The company has fully exited some states, such as Louisiana and Connecticut, but in Idaho and New York, opted to leave Gold Coin play as an option.
The company is a leader of the Social Gaming Leadership Alliance (SGLA) and has spoken out against anti-sweepstakes measures either as an individual witness in state legislatures or as part of the SGLA on numerous occasions this year.
VGW charging sales tax on Gold Coins
The altered approach in New Jersey is one of several operational changes VGW has made in 2025. As well as pulling sweeps games out of other states, it raised its minimum age for play to 21 years old in February.
Meanwhile, in a more recent change, it began charging its customers sales tax on purchases of Gold Coins in several U.S. states as of July.
VGW confirmed to SBC Americas that Chumba, LuckyLand Slots and Global Poker all implemented the sales tax as of July 10. The company did not specify in which states the change has taken effect, or in how many, so it’s uncertain if New Jersey is one of the states affected. The total rate paid by players is dependent on their location.
“We acknowledge this is a change for some of our players, but as the legal framework has evolved over time, we’ve determined it is the appropriate time to take this action,” VGW told SBC Americas in a statement on July 10. “This is part of our commitment to upholding the highest standards of integrity and compliance, and our focus now is on ensuring players are well informed and supported as required.”
