Sweepstakes Casino Company VGW Leaving Canadian Market in September

^{VGW plans to end operations in Canada for Chumba Casino and Global Poker in September, which they say is to streamline their operations. (Photo: Ferenz / Alamy)}

VGW, the parent company of popular sweepstakes casino sites such as Chumba Casino and Global Poker, has announced that it will be ending its operations in Canada later this year.

VGW has announced that Canadian players will be able to continue purchasing Gold Coins through Aug. 28, play with both Gold Coins and Sweeps Coins through Sept. 30, and redeem any remaining Sweeps Coins by Oct. 23. 

[Ed. Note: Casinos.com does not have a relationship with VGW. Readers in California and most other states can find a good sweepstakes casino here.]

VGW: Company Will Now Focus on United States

The company announced the decision in an email to Canadian users.

“We understand this is an adjustment after many years and our valued Canadian players may be disappointed,” the email read. “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.”

A spokesperson told iGaming Business that the decision wasn’t related to any pressure from Canadian regulators but was rather motivated by a desire to streamline the business.

“Ultimately, this is a difficult but strategic, isolated decision,” the spokesperson said. “Our Canadian business is relatively small, as the vast majority of our players reside in the larger US market, where we will concentrate our management focus, resources and investment going forward.”

That focus on the United States might include a battle to keep VGW’s websites available in as many state markets as possible. Already, the company has pulled out of about a dozen states, with New York and New Jersey recently joining that list ahead of both states looking to ban sweepstakes casinos, which New Jersey officially did last week.

Lawsuits Pile Up Against Sweepstakes Casinos

VGW is also facing a series of class-action lawsuits across the country. Most recently, a new lawsuit was filed in California against the company, its founder Laurence Escalante, and several vendors in the hopes of courts finding that there is standing to sue in the state, as much of VGW’s business flows through California.

While VGW and other operators in the sweepstakes casino industry have pushed back on the crackdowns and legal challenges to their sites, the company does look to be taking steps to lessen its regulatory burden.

On Aug. 1, VGW shareholders approved an offer from Escalante to purchase all outstanding shares of the company and take the firm private, allowing Escalante – who retained control of 70 percent of the company – to purchase the other 30 percent of the operation. The private company that will result from the sale will be registered in Guernsey, rather than Australia, where VGW is currently based.

Sweepstakes casinos have become one of the primary targets of legislators and members of the gaming industry in recent years. Earlier this month, the American Gaming Association released a survey showing that 90 percent of users believe sweepstakes casinos are a form of gambling, with more than two thirds saying they play on the sites primarily to win real money.