However, unlike other sweepstakes operators who have exited the state entirely, the company plans to continue offering Gold Coin play for the foreseeable future.

In an email to customers, the company announced that they will still be able to acquire and use eligible Sweepstakes Coins until June 2. After that date, they can only redeem eligible coins until August 1, at which point sweepstakes play will cease.

VGW Follows Mass Exodus Out of New York

The VGW announcement is unsurprising. At the end of March, over a dozen operators, such as High 5, Zula, Fortune Coins, and McLuck, exited New York.

The mass exodus was seen as a precautionary move. At the time, a Senate bill to ban the platforms moved out of committee to the Senate floor. Notably, at the time, VGW decided to wait and continue operations.

While VGW initially held out, the decision to follow the others could be due to a companion assembly bill being passed by the Assembly Racing and Wagering Committee, signaling a momentum in a potential ban.

The Senate bill reached a third reading in March, but there has been no progress since then. Similarly, the Assembly proposal moved to the Codes Committee but has yet to receive a hearing.

The New York legislative session adjourns on June 12, leaving a limited time for the bills to pass, which makes the move by VGW surprising to some. 

However, that could mean there are indications that lawmakers may move quickly at the end to possibly follow Montana’s lead, which became the first state to officially ban sweepstakes casinos.

The Latest State Exit by VGW

VGW’s decision to cease offering sweepstakes play in New York marks the latest exit by the operator in recent months.

Most recently, the company exited Delaware after the state’s Delaware Division of Gaming Enforcement issued a cease-and-desist order against VGW.

In December 2024, the company’s Global Poker platform announced its exit from Nevada, effective April 2025. Chumba Casino and LuckyLand Slots had already ceased operations in the state at the time.

Before that, in October 2024, VGW ceased operations in Connecticut after receiving a cease-and-desist letter.

Despite the exits, VGW has not been among the most compliant sweepstakes operators.

While it has exited Delaware, it did so after receiving a second such demand by the state’s regulator. Initially, the Delaware Division of Gaming ordered that the company withdraw its platforms in 2023. However, all three remained active.

Meanwhile, in March, Maryland sent cease-and-desist orders to several sweepstakes operators, including the VGW platforms. While others like McLuck and High 5 have complied, VGW still lists Maryland as an eligible state.

The Creation of the Social Gaming Leadership Alliance

The New York sweeps play exit comes on the heels of the announcement of the formation of the Social Gaming Leadership Alliance (SGLA). SGLA is a trade group that represents the interests of sweepstakes operators.

The goal of SGLA is to educate the public and lawmakers, helping them understand the growing sweepstakes casino industry. The trade group promotes the free-to-play model, emphasizing responsible innovation, player protection, and industry integrity.

In addition to becoming a founding member of SGLA, VGW decided to raise its minimum age to 21 in February. The move was likely to demonstrate a commitment to regulator alignment. The change aligns VGW’s platforms to regulated online casinos, where the minimum age is 21. Traditionally, the minimum age for sweepstakes casinos is 18 years old.

The post VGW Ends Sweepstakes Play in New York, Joining Wave of Exiting Operators appeared first on CasinoBeats.

In the lawsuit, California resident Aubrey Carillo claims she lost money on ChumbaCasino.com, a site the American Idol and Wheel of Fortune star promotes regularly through social media.

Lawsuit Details and Allegations Against Seacrest

Carillo argues that by posting paid advertisements and appearing in the online casino’s promotional materials, the American Idol and Wheel of Fortune star is essentially endorsing illegal gambling.

The lawsuit aims to shut down the site’s operations in California and prevent Seacrest from promoting it.

Founded in 2012, Chumba Casino is operated by Virtual Gaming Worlds (VGW), an Australian company. The site offers over 200 casino-style games, including poker, blackjack, and roulette, and markets itself as the “ultimate playground for funseekers.”

Seacrest and Chumba Casino announced their partnership in December 2023.

In an announcement promoting the partnership, Seacrest said: “Who doesn’t love games? I’m now excited to announce my partnership with Chumba to bring the fun home all year long, making it accessible and easy to all.”

Carillo claims in the lawsuit that Seacrest’s involvement with the site has helped fuel gambling addiction issues among teens and adults. She also alleges her child was able to access the site. 

Online sweepstakes platforms like Chumba Casino allow users to wager with free coins. Users can purchase additional coins with real money and exchange them for cash or prizes. These types of casinos, which are unregulated and not classified as traditional gambling sites, tend to operate in a gray area and have been heavily scrutinized by lawmakers.

Lawmakers Move to Curb Sweepstakes Gambling

Several states are seeking to prevent them from operating.

The Louisiana Senate unanimously passed a bill last week that would ban sweepstakes gambling operators, promoters, and manufacturers. If passed, Louisiana SB 181 would go into effect on Aug. 1.

Connecticut’s bill targeting online sweepstakes, SB 1235, passed the Senate Judiciary Committee by a 37-0 vote. It would make operating an illegal gambling business a Class D felony, punishable by up to five years in prison and a $5,000 fine.

Another unanimous vote saw the New York Assembly Racing and Wagering Committee pass A6745, seeking to ban sweepstakes games. A companion bill, SB 5935, was amended, authorizing the New York State Gaming Commission (NYSGC) to decide what constitutes a “dual-currency system” under the law.

The Social and Promotional Games Association (SPGA) criticized the amendment, claiming it “needlessly threatens” the state’s economy and is merely a “political patch meant to quiet critics without solving the underlying problem.”

On the contrary, proposals in Maryland and Mississippi recently fell short. 

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