Report: VGW To ‘Phase Out’ Sweeps Platform In New York
Decision comes as anti-sweeps bills seem likely to progress in New York statehouse
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VGW, the largest online sweepstakes casino operator in the United States, has reportedly made plans to “phase out” its sweeps platform in the New York state marketplace.
Sweepsy was the first to report that VGW — which operates Chumba Casino, Luckyland Slots, and Global Poker — has an exit plan for sweeps that would begin in June and extend through most of the summer.
“Our valued players in New York will still be able to enjoy all their favorite free-to-play games using Gold Coins,” a VGW spokesperson told the website, “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.”
As of late morning Tuesday, none of the terms and conditions across VGW’s three gaming websites listed New York among the states where it is ineligible to enter sweepstakes play.
Would not be the first exit by VGW
The decision appears to be an acknowledgement by VGW that anti-sweeps bills moving through the New York legislature have a strong chance of passing. SB 5935, sponsored by Sen. Joseph Addabbo, advanced to a third reading April 30, while the House companion bill, A6745, could be heard as early as Wednesday in the lower chamber’s Racing and Wagering Committee.
The impending move comes despite VGW being a part of the recently formed trade body Social Gaming Leadership Alliance (SLGA), which was launched last week. The group named Jeff Duncan, former U.S. congressman from South Carolina, as its executive director.
VGW already opted to voluntarily leave Delaware last month after receiving a cease-and-desist order from the state’s Department of Gaming Enforcement. In a statement on its official website, VGW said it disagreed with the decision after “repeatedly requesting the opportunity to discuss these issues with the agency, but were rebuffed.”
It also received a cease-and-desist letter from the Maryland Lottery in March, though the websites operated by VGW do not have the state listed among ineligible jurisdictions. Josh White, a representative from VGW, testified against HB 1140 in the Old Line State, claiming the bill was too broad and overreached in areas that would have had unintended consequences for suppliers and payment processors.
White’s testimony, along with that from Social and Promotional Games Association (SPGA) attorney Jeff Ifrah, was enough to prevent the Maryland House Ways and Means Committee from taking up a vote on the bill to advance it in the lower chamber.
