Canadian customers of the popular online gaming websites Chumba Casino and Global Poker were told they would no longer be able to access the sites after Oct. 23. VGW Holdings is phasing out of the Canadian market starting this week.
Key Takeaways
- Canadians will no longer have access to VGW’s games starting Sept. 25.
- The decision to exit Canada comes just weeks after VGW shareholders agreed to sell their remaining shares to majority owner, Laurence Escalante.
- Facing regulatory scrutiny, the sweepstakes casino provider VGW has vacated roughly a dozen U.S. states over the past year.
In an email to its customers, VGW wrote, “We understand this is an adjustment after many years and our valued Canadian players may be disappointed. 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.”
The company published a schedule of the phaseout, helping customers prepare for the exit. Starting Aug. 28, players can continue to use Gold Coins or Sweeps Coins already in their accounts, but they won’t be able to buy additional Gold Coins. Games will no longer be available as of Sept. 25. Players will be able to redeem any remaining Sweeps Coins for prizes up until Oct. 23.
“After careful consideration, we’ve made a strategic commercial decision guided by our business priorities. This allows us to focus our resources and investment in a way that supports the ongoing success of the business,” the company wrote.
Although, it’s not clear what role, if any, North America will now play in VGW’s business plans. The company has recently pulled out of a dozen states as U.S. regulators crack down on sweepstakes casino operators.
In May, VGW pulled out of New York after the Empire State introduced a number of bills that would specifically ban sweepstakes casinos. Likewise, VGW exited New Jersey ahead of its potential ban of sweeps. So, far, the sweeps company has vacated roughly a dozen states, including Nevada, Montana, Washington, Montana, Mississippi, Michigan, Louisiana, Connecticut, Delaware, and Idaho.
VGW’s plan to reduce regulatory pressures
VGW seems to be on a mission to reduce its current regulatory headaches. Along with vacating U.S. states with stricter gaming regulations, the company is currently going private. The resulting private entity will be registered in Guernsey.
VGW majority owner, Laurence Escalante, recently took the company private. Escalante owned 70% of the company. But shareholders approved Escalante’s offer to acquire the remaining 30% of the company’s shares earlier this month. Although VGW will still have operations in Australia, the company’s registration change to Guernsey should lighten VGW’s tax burden and regulatory requirements.
