VGW to Halt Its Sweeps Coins Offerings in New York

Sweepstakes giant VGW Holdings announced that it will no longer offer its signature sweeps products in New York’s gaming market amid continued regulatory pushback from local authorities. However, the company’s free-to-play games will remain available to players.

VGW to Exit the Empire State

VGW, the operator of some of the most popular sweepstakes platforms in America, including Chumba Casino and LuckyLand Slots, has announced its decision to stop offering its sweeps products in New York.

The company’s intentions were confirmed in emails that were sent to customers in the state this weekend, sweepstakes casino authority Sweepsy reported. The sweeps specialist further elaborated that the decision would only affect products using Sweeps Coins. These products would be discontinued in New York in the following months.

As a result, players in the Empire State will no longer be able to acquire Sweeps Coins via login rewards or Gold Coin purchases. The sale of Sweeps Coins will end on June 2, which would also be the final date on which players can spend their coins to play games.

From that point, players would still be able to use their outstanding balance to procure prizes. This will continue until August 1 when VGW will officially put an end to its sweeps operations.

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.

VGW statement

In the meantime, Gold Coins, which are VGW’s free-to-play offerings, will remain available to players, meaning that fans will still be able to enjoy the operator’s games.

America Is Becoming Sweepstakes-Unfriendly

As mentioned, VGW’s decision to put an end to its sweepstakes operations in New York comes amid increased scrutiny against the sweeps sector. While sweepstakes have experienced unprecedented growth in the past few years, they have also attracted the ire of state regulators who have slammed their offerings as “illegal online gambling.”

While sweeps companies have tried to oppose the pushback, with some even proposing to regulate sweepstakes and have them pay taxes, regulators have largely remained relentless in pursuing a crackdown on such products.

As a result, many sweepstakes operators have opted to save themselves the regulatory trouble and exit certain stricter markets. New York, for example, has already seen the exits of the likes of Hello Millions, High 5 Casino, Funzpoints and McLuck.

In the meantime, VGW just unveiled the Social Gaming Leadership Alliance (SGLA), a new advocate group. Similar to the SPGA, the SGLA will champion the sweepstakes industry’s interests.