VGW is shuttering operations of the two brands it operates in Canada, adding to recent shifts in strategy for the sweepstakes casino giant in North America.
The company’s Chumba Casino brand notified players via email of its intention to no longer offer its content in Canada starting Oct. 23. VGW is also planning to pull its Global Poker brand out of the market north of the border, ending both its real-money and free-to-play gaming offerings in the country. While Luckyland Casino is also a VGW brand, it is not offered in Canada.
Full VGW exit will wrap up on Oct. 23
In Canada, the dual-currency system offered by Chumba Casino will no longer allow players to purchase Gold Coins on Aug. 28. Then, on Sept. 24, players will no longer be able to access games but they can still redeem Sweeps Coins for prizes. On Oct. 23, Canada will have Chumba Casino and Global Poker leave for good.
“We can confirm that following careful consideration, we’ve informed players of a decision to phase out our brands that offer products in Canada (Chumba Casino and Global Poker),” a VGW spokesperson told Canadian Gaming Business. “We understand this is an adjustment after many years and our valued Canadian players may be disappointed. This decision wasn’t taken lightly and our focus is on ensuring players are fully informed about the changes and that this transition is as smooth as possible.”
The sweepstakes company is exiting Canada despite not facing heavy regulatory scrutiny compared to its operations across the U.S. VGW has operated in every Canadian province except Quebec, where gaming rules include barriers for social gaming operators.
Majority owner acquires full control of VGW
Earlier this month, VGW approved the sale of the remaining 30% of the company to majority owner Laurence Escalante. He filed a scheme implementation deed in June for the remaining ownership stake, with the transaction being made through an unlisted special purpose company created by his family office. The entity, Ocean BidCo Limited, provides Escalante with full ownership of VGW after 85% of shareholders approved the deal.
Escalante proposed a $632 million buyout for the remaining 30% of VGW and refused to submit a higher bid after it was deemed fair and reasonable by an independent expert.
The buyout was also approved on Aug. 5 by the Federal Court of Australia, its last step for closing.
According to documents, VGW posted $4 billion in revenue in the 12 months to June 30 last year. The results during the period were a 27% uptick year-over-year.
