VGW is ceasing operations of the two brands it operates in Canada, adding to the list of departures for the sweepstakes casino giant in North America.
VGW To Exit Canada On Oct. 23
The company’s Chumba Casino brand notified players via email of its decision to no longer offer casino-style games in Canada starting Oct. 23. It also plans to pull its Global Poker brand out of the market.
In Canada, the dual-currency system offered by Chumba Casino will no longer allow players to purchase Gold Coins on Aug. 28. As of Sept. 24, players will no longer be able to access games, but they can still redeem Sweeps Coins for prizes.
On Oct. 23, both Chumba Casino and Global Poker will officially exit Canada.
“We can confirm that following careful consideration, we’ve informed players of a decision to phase out our brands that offer products in Canada (Chumba Casino and Global Poker),” a VGW spokesperson told Canadian Gaming Business.
“We understand this is an adjustment after many years and our valued Canadian players may be disappointed. This decision wasn’t taken lightly, and our focus is on ensuring players are fully informed about the changes and that this transition is as smooth as possible.”
Sweeps Company Has Left Several States Amid Regulatory Scrutiny
VGW has already pulled out of a dozen states in the U.S. as the company continues to face heavy regulatory scrutiny. Quebec, meanwhile, is the only Canadian province with strict rules for social gaming operators.
“After careful consideration, we’ve made a strategic commercial decision guided by our business priorities. This allows us to focus our resources and investment in a way that supports the ongoing success of the business,” VGW wrote.
In May, VGW exited New York after the Empire State introduced a number of bills that would specifically ban sweepstakes casinos.
The company pulled out of New Jersey ahead of its potential ban of sweeps sites.
VGW has also left about a dozen other states, including Connecticut, Delaware, Idaho, Louisiana, Michigan, Mississippi, Montana, Nevada, and Washington.
In addition to vacating a number of U.S. territories, the company is currently going private. The business will now be registered in Guernsey.
VGW majority owner, Laurence Escalante, recently took the company private.
Escalante owned 70% of the company, but shareholders approved Escalante’s offer to acquire the remaining 30% of the company’s shares earlier this month.