VGW Announces It Will No Longer Offer Sweepstakes Casinos In New York
One of the most well-known operators of sweepstakes casinos is pulling out of New York.
VGW might immediately ring a bell when discussing sweepstakes casinos, but the parent company of household names like Chumba Casino, LuckyLand Slots and Global Poker announced it will soon exit the state.
VGW recently emailed its New York sweepstakes customers to inform them that they now have a June 2 deadline to purchase Sweepstakes Coins and will need to redeem any coins by Aug. 1.
With the news, VGW has now withdrawn or is in the process of withdrawing its sweepstakes offerings from eight US states. New Yorkers will remain able to play with Gold Coins, which serve as play money and have no redeemable value.
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Withdrawal comes amidst regulatory heat
The decision to withdraw from New York comes as a precautionary measure, with two bills to ban sweepstakes casinos in the Empire State advancing through committees and reaching the Senate and General Assembly floors.
In the initial story broken by Sweepsy, a VGW representative cited the desire to operate transparently and within the scope of the law, saying “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.”
New York lawmakers have until June 12 to pass these bills, introduced by Sen. Joe Addabbo and Rep. Carrie Woerner.
Addabbo also introduced an online casino bill in the 2025 legislative session and has spoken about incorporating sweepstakes casinos into the regulated online gambling industry. A proponent of legal gambling, Addabbo’s concerns lie with “legal loopholes” and ensuring New Yorkers’ safety.
Eight states and counting
After serving many US markets for over a decade, New York marks the eighth state where VGW will cease operations.
Other recent examples include Montana and Delaware, which VGW pulled out of in April 2025. Montana’s withdrawal came before the state passed a law to ban sweepstakes casinos, and Delaware’s came after receiving a cease and desist letter from state regulators.
VGW exited the Nevada market in January 2025, anticipating similar regulatory pressure. It also received (and complied with) a cease and desist from Connecticut in October 2024.
Dating further back, VGW announced its departure from Michigan’s market in late 2023 and formally withdrew on Feb. 1, 2024. Most operators choose not to open in Washington and Idaho due to state laws.
Future of sweepstakes casinos in jeopardy
As nationwide gambling economies mature, state regulators continue to tighten the reins on their respective economies. Most states have legalized online sports betting, and the accompanying tax revenue has proven significant and resourceful to those states. Those with online casinos have benefited even more.
A handful of states introduced bills in 2025 to ban sweepstakes casinos. Those discussions will only grow louder, and in the meantime, more unregulated operators will find themselves on the chopping block.
That said, VGW’s compliance in withdrawing from unwelcome markets creates a possible opportunity for it to fit into a regulated model in the future. Addabbo has discussed the matter, and it could be the only saving grace in an environment that is otherwise becoming more inhospitable as time passes.
