VGW to End Sweepstakes Model in Mississippi and New Jersey

The Australia-based sweepstakes operator Virtual Gaming Worlds (VGW) announced that its brands Chumba Casino, Luckyland Slots, and Global Poker will eliminate their dual currency system in Mississippi and New Jersey. This means that the company will effectively transition the business to operate more like a traditional social casino.

VGW Is Phasing Out Sweepstakes Coins in Mississippi and New Jersey

In an email to customers, VGW informed users of an important upcoming change to the Terms and Conditions for Chumba Casino. Starting July 31, 2025, the company will phase out Sweeps Coins in the state of Mississippi. VGW acknowledged that the news may be disappointing and emphasized that the decision was not made lightly, but was the result of careful consideration based on various business factors. Although Promotional Play will be discontinued, customers will still be able to access and enjoy all their favorite games in Standard Play using Gold Coins.

Players will no longer be able to acquire Sweeps Coins by any means from the above-mentioned date. This includes login bonuses, competitions, or promotional bonuses tied to Gold Coin purchases. On the same date, the ability to generate postal request codes will also be discontinued. Starting August 14, gameplay using Sweeps Coins will be disabled, and mail-in requests will no longer be accepted. However, redemption requests can still be submitted. Finally, as of September 4, players will no longer be able to redeem any Sweeps Coins for prizes.

Sweepstakes Casinos Seem to Be Under More and More Regulatory Pressure

VGW’s shift away from sweepstakes-based operations in multiple states seems to reflect a revised strategy, as the sweepstakes model faces growing scrutiny from regulators and lawmakers. Recently, VGW started charging purchases as a reflection of more regulatory oversight in the United States, where lawmakers are paying closer attention to the sweepstakes gaming industry.

The latest of VGW’s policy changes comes soon after Mississippi’s state gaming regulator issued a cease-and-desist letter to the company last month. At the same time, New Jersey’s state legislature has passed Bill A5447, which aims to prohibit the operation of sweepstakes casinos. The bill now awaits final approval from Governor Phil Murphy. If the governor takes no action, the bill will automatically become law at the end of a 45-day period, which concludes on August 14.

Interestingly, Laurence Escalante, who attempted to buy out VGW for a whopping $3.2 billion, noted the growing pressure on sweepstakes markets when it made its offer a few weeks ago.