Sweepstakes casino company Virtual Gaming Worlds (VGW) alerted customers in Mississippi it will shut down sweepstakes gaming operations on its sites, Chumba Casino, LuckyLand Slots, and Global Poker.
The first phase of that exit begins July 31, with the end of Sweepstakes Coin promotions and coin package sales.
Key takeaways
- Sweepstakes casino operator VGW is shutting down in Mississippi.
- The operator told players via email it would stop processing Sweeps Coins transactions by Sept. 4.
- The operator will still offer free casino gaming with Gold Coins through these platforms in the Magnolia State.
A sweepstakes casino lets customers play online games using two virtual currencies. Gold Coins let you play these games and earn more Gold Coins as a reward. You can only use your Gold Coins to play more sweepstakes casino games. Meanwhile, you can also play with Sweeps Coins, which you can redeem for prizes like vouchers and cash.
After the first stage, players can still use Sweeps Coins to play games at VGW platforms. However, starting Aug. 14, VGW players can no longer play using Sweeps Coins. VGW platforms will still allow redemption requests using Sweepstakes Coins until Sept. 14.
The email read, “We understand this news might be disappointing, and want to assure you that this decision wasn’t made lightly – it was carefully considered based on several business factors.”
Sweepstakes casinos were in the spotlight in Mississippi this year, with a bill to ban sweepstakes casinos passing the state Senate in February. However, that proposal, including measures to legalize online sports betting, died during the legislative session.
However, that didn’t stop Mississippi regulators from targeting sweepstakes casinos. In June, the state sent 10 cease-and-desist letters to sweepstakes casinos, including Chumba Casino. The Mississippi Gaming Commission cited several laws that operators like Chumba Casino broke.
VGW faces more pressure from states
This isn’t even the first U.S. state where VGW withdrew its Sweeps Coins. The operator stopped its Sweeps Coins services in New Jersey, which passed a bill to ban sweepstakes casinos earlier this year and is expected to take effect Aug. 14.
Meanwhile, the company introduced a sales tax on its Gold Coins, which varies depending on the state. The sales tax is based on the sales tax users pay in each state. The company hasn't provided guidance on the states where the sales tax is enforced.
