VGW Holdings, the operator of sweepstakes gaming platforms, including Chumba Casino, LuckyLand Slots, and Global Poker, has unveiled plans to phase out its sweepstakes operations in New York.
The decision came just days after VGW announced the launch of the Social Gaming Leadership Alliance (SGLA), a coalition of industry leaders advocating for the online social games industry.
The SGLA is an American organization that aims to ensure key stakeholders stay informed about the growing online social games industry, including free-to-play, casino-themed games for sweepstakes casinos and social casinos.
Sweeps operators across the nation continue to deal with regulatory scrutiny from state lawmakers and gaming commissions. Montana became the first U.S. state to officially outlaw online sweepstakes games on Friday.
VGW Sent An Email To Its New York-Based Users
According to multiple reports, VGW communicated its plans over the weekend via email to New York-based users. The email informed players that while access to free-to-play games using Gold Coins will remain, any activity related to Sweeps Coins will be coming to an end in the months ahead.
“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 message reads.
“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.”
A VGW spokesperson also confirmed the report to Yay Sweepstakes:
“We can confirm that following careful consideration, we’ve informed players of a decision to phase out Promotional Play 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.”
Phase-Out Process To Begin June 2 And Conclude August 1
According to VGW, the phase-out process will begin on June 2 and come to a close August 1. Starting June 2, players in New York will no longer be able to obtain Sweeps Coins through any platform. This includes via daily login rewards, purchases of Gold Coins, participation in promotional contests, or through mail-in requests.
However, users with remaining Sweeps Coins can still use them for gameplay until July 2.
Although players will not be able to acquire or use Sweeps Coins after that date, they will still have the ability to redeem them for prizes until August 1.
Note that this latest announcement only applies to VGW’s sweepstakes platforms. Social gaming sites, which use Gold Coins only, will continue in the Empire State.
Anti-Sweepstakes Bills Advance In New York Legislature
Two anti-sweepstakes bills are still alive in the New York legislature: Senator Joseph Addabbo Jr.’s SB 5935 and Assemblymember Carrie Woerner’s Assembly Bill 6745. The latter was approved on April 30 by the Assembly Racing and Wagering Committee following a unanimous vote during a public hearing.
Woerner’s bill proposes amendments to New York’s racing, parimutuel wagering, and breeding law to ban online sweepstakes games. A6745 would ban online sweepstakes games that simulate casino-style games, video poker, bingo, lottery games, or sports betting.
As a result, several sweepstakes casinos have announced plans to leave New York. Those sweeps sites include Hello Millions, High 5 Casino, PlayFame, Real Prize, Rolling Riches, SpinBlitz, and SportsMillions.
New York’s legislative session adjourns June 12.