Home VGW to wind down sweepstakes games in New York amid crackdown

VGW to wind down sweepstakes games in New York amid crackdown

VGW, the company behind popular interactive games like Chumba Casino and LuckyLand Slots, is planning to wind down its sweepstakes operations in New York. The move comes as the state ramps up its efforts to crack down on sweepstakes casinos, prompting several operators to exit the market.

The company confirmed to ReadWrite that it has already notified players about its decision to start phasing out the platform in New York.

A VGW spokesperson told us: “We can confirm that following careful consideration, we’ve informed players of a decision to phase out Promotional Play (sweepstakes promotions) in the state of New York.

“Our valued players in New York will still be able to enjoy all their favorite free-to-play games using Gold Coins, and we are 100 percent focused on ensuring players are fully informed about the changes, and that this transition is as smooth and seamless as possible.”

VGW started notifying its New York players about the change via email over the weekend.

The spokesperson added: “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 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.

“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.”

When will VGW phase out its sweepstakes platform in New York?

VGW’s phase-out of its sweepstakes operations in New York is set to roll out over the next couple of months, starting in June and wrapping up by August.

According to the company’s email to players, the first big change comes on June 2. From that date, players in New York will no longer be able to collect Sweeps Coins in any way. That includes daily login rewards, Gold Coin purchases, contests, and mail-in requests. However, any Sweeps Coins already in a player’s account can still be used for gameplay until July 2.

Then, on July 2, VGW will stop allowing gameplay with Sweeps Coins altogether. The company will also stop processing any mail-in requests for Sweeps Coins from New York residents at that time. Even so, players will still be able to redeem any remaining Sweeps Coins they have, but only until the end of July.

Starting August 1, redemption of Sweeps Coins for prizes will no longer be possible under any circumstances.

It’s important to note that this change only affects the sweepstakes side of VGW’s platforms. Social gaming, which uses Gold Coins only, will continue as usual for New York players.

New York crackdown

Senator Joseph Addabbo Jr. Sweepstakes casinos exit New York amid legislative crackdown and growing pressure from Senator Addabbo’s bill targeting promotional gaming platforms.
Senator Joseph Addabbo Jr.’s bill has made many sweepstakes casinos leave the state. Credit: www.nysenate.gov

All of this is happening as Senator Joseph Addabbo Jr.’s SB5935 bill continues to move through the New York legislature. The bill is specifically aimed at banning sweepstakes-style gaming sites. It also comes on the heels of a broader national debate, with growing efforts to crack down on these types of platforms across the country.

As a result, several sweepstakes casinos have announced plans to leave New York next month. That list includes Real Prize, Hello Millions, SportsMillions, PlayFame, SpinBlitz, and Rolling Riches. High 5 Casino has already made its move earlier, halting new sign-ups and transactions back on March 27.

Featured image: VGW / Canva

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the gambling and blockchain industries for major developments, new product and brand launches, game releases and other newsworthy events. Editors assign relevant stories to in-house staff writers with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Suswati Basu
News Editor

Suswati Basu is a multilingual, award-winning editor and the founder of the intersectional literature channel, How To Be Books. She was shortlisted for the Guardian Mary Stott Prize and longlisted for the Guardian International Development Journalism Award. With 18 years of experience in the media industry, Suswati has held significant roles such as head of audience and deputy editor for NationalWorld news, digital editor for Channel 4 News and ITV News. She has also contributed to the Guardian and received training at the BBC As an audience, trends, and SEO specialist, she has participated in panel events alongside Google. Her…

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