Virtual Gaming Worlds (VGW), the sweepstakes casino operator that owns Chumba Casino, LuckyLand Slots, and Global Poker, added a sales tax on Gold Coin purchases on all three of its sites “across several US states,” which started on Thursday, July 10, a company spokesperson announced.
“We acknowledge this is a change for some of our players, but as the legal framework has evolved over time, we’ve determined it is the appropriate time to take this action,” the spokesperson said.
“This is part of our commitment to upholding the highest standards of integrity and compliance, and our focus now is on ensuring players are well informed and supported as required.”
VGW Updated Its Terms And Conditions To Include New Sales Tax Policy
VGW also updated its terms and conditions to include the new sales tax policy. The new clause now reads:
Under certain state laws, Gold Coin purchases may be subject to certain taxes, depending on your location. You agree your purchase of Gold Coins is made with the understanding that such tax will be added at the time of purchase. In jurisdictions where tax is not added by us at the time of purchase, you are solely responsible for any taxes applicable from your Participation, including transaction taxes (e.g. sales/use tax, value added taxes or digital sales taxes) applicable to your jurisdiction. Additionally, you are solely responsible for reporting any income and income taxes associated with winning valuable prizes.
VGW’s statement did not confirm in which states the sales tax was implemented. However, sweeps players in Arkansas, Hawaii, Illinois, Kentucky, and Pennsylvania did receive the notice about the new sales tax from Chumba and other sites like LuckyLand.
This message was sent to players on Wednesday:
“Please be advised that purchases may be subject to tax depending on your location. Any applicable tax will not be counted toward your purchase limit.”
45 States In The US Collect Statewide Sales Tax
As of July 2025, 45 states in the US collect statewide sales tax, while 38 states impose local sales taxes. California has the highest state-level sales tax at 7.25 percent.
“Sales tax is common in the US and helps state governments raise revenue, but differs across the country,” the VGW spokesperson said. “Some states don’t have sales tax, while in other states that do, the tax rates can vary. Local governments may also have additional taxes. As such, the total rate paid by players following this decision is dependent on their location.”
Sweepstakes casinos operate under a dual-currency system that allows customers to use Sweeps Coins and Gold Coins to fund their casino-style games. These casinos do not require purchases and do not award cash prizes.
The platforms, however, award players more coins and gift cards. Although not required, Gold Coin purchases allow customers to play more games without the risk of losing real money.
Gold Coins cannot be redeemed for cash or prizes.
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