VGW Withdrawing Sweepstakes Gaming From New York

• Sweepstakes giant VGW announced to New York users it is phasing out sweepstakes gaming from the Empire State
• As of July 2, all sweepstakes coins will be frozen in New York
• VGW operates several popular sweepstakes brands

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Sweepstakes giant VGW Holdings Limited announced it will be withdrawing its sweepstakes gaming from New York this summer.

The company, which operates popular social sweepstakes brands Chumba Casino, Luckyland Slots, and Global Poker, will begin the process to withdraw its dual-currency sweepstakes gaming offerings in New York starting in June.

“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,” a VGW spokesperson said.

Sweepsy.com was the first to report the news.

Phasing Out Sweepstakes

VGW Holdings Limited emailed New York customers of the decision, noting accounts would remain until August.

The company said it will phase out its sweepstakes offerings over the course of the next two months. Beginning June 2, customers will no longer be able to acquire sweepstakes coins through any means (purchase, mail-in requests, etc.) and will have one month to play through any remaining sweepstakes coins before they are frozen on July 2.

Customers will then have one final month to redeem any sweepstakes coins in New York. As of Aug. 1, players will no longer be able to redeem any sweeps coins won for prizes.

The VGW spokesperson noted that free-to-play games will remain in New York.

“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,” the spokesperson said.

VGW Holdings Limited is just one of several sweepstakes companies to pull their dual-currency offerings from New York. It joins High 5 Casino, McLuck, and several other operators to leave the state.

New York Lawmakers Focusing on Sweepstakes

The decision to leave New York comes as lawmakers have started to focus on legislation to ban dual-currency sweepstakes in the state.

Sen. Joseph P. Addabbo Jr.’s (D-15) bill, SB 5935, takes aim at online sweepstakes games and prohibits them in the state. Addabbo Jr. introduced the bill in March, which has since been approved in committee and is currently on the New York Senate floor calendar.

Addabbo Jr.’s bill provides the following definition of an online sweepstakes game:

“Any game, contest, or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal, or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or any chance to win any price, award, cash or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games including but not limited to blackjack, roulette, craps, and poker, lottery games including but not limited to draw games, instant win games, keno, and bingo, and sports wagering.”

Sweepstakes games will not include a game which does not award cash prizes or cash equivalents.

The “dual-currency” system is the key part of the definition, as sweepstakes casinos games allow users to play for free or purchase “sweepstakes coins” to play their games and exchange them for real cash prizes.

The bill sets fines of a minimum of $10,000 or a maximum of $100,000 for an operator or affiliate offering a sweepstakes casino game in the state, or accepting revenues from a sweepstakes casino company.