Sweepstakes giant VGW plans Canada exit, focuses on US amid regulatory change

Sweepstakes giant VGW plans Canada exit, focuses on US amid regulatory change

Summary

VGW will end operations of Chumba Casino and Global Poker in Canada on 23 October 2025, saying the move frees resources to concentrate on the US. Players can purchase Gold Coins until 28 August 2025; gameplay will stop on 25 September 2025 and sweeps coins can be redeemed until 23 October 2025. VGW said the decision was strategic and not the result of pressure from Canadian regulators, and noted it never operated in Quebec due to local prohibitions.

The pullback comes as US lawmakers and state regulators step up actions against sweepstakes operators. Recent measures include state bans, cease-and-desist letters and proposed legislation — developments that have already forced VGW to reduce or exit operations in multiple US states. Meanwhile, California is considering AB 831, which would ban sweepstakes, even as VGW forges a tribal partnership in the state and industry groups defend the dual-currency model.

Key Points

  • VGW will close Chumba Casino and Global Poker in Canada on 23 October 2025.
  • Gold Coin purchases allowed until 28 August 2025; gameplay stops 25 September 2025; sweeps coin redemption available until 23 October 2025.
  • VGW says the Canadian business is relatively small and the move is a strategic reallocation of resources to the larger US market.
  • US regulatory pressure is intensifying: New Jersey enacted a sweepstakes ban; Connecticut and Montana also passed restrictions; several states including New York, Michigan, Arizona and Mississippi have issued cease-and-desist letters to unregulated operators.
  • VGW has reduced or exited sweepstakes play in at least 11 US states amid enforcement and legislative actions.
  • California’s AB 831 (amended tribal gaming bill) could prohibit sweepstakes; VGW has partnered with the Kletsel Dehe Wintun Nation and industry trade bodies (SGLA, SPGA) are lobbying in defence of the model.
  • The legality debate continues: industry groups argue the dual-currency format is lawful, while the American Gaming Association says a majority of consumers view sweeps as gambling.

Why should I read this?

Quick heads-up: VGW is pulling Chumba and Global Poker from Canada and doubling down on a tricky US market. If you work in social gaming, regulation, payments or tribal partnerships, this signals where risk — and opportunity — is shifting. We read the detail so you don’t have to — here’s the punchy version with the dates and outcomes you need.

Source

Source: https://igamingbusiness.com/casino-games/social-gaming/operator-vgw-pulls-sweepstakes-sites-canada/