Virtual Gaming Worlds, the parent company of Chumba Casino and Global Poker, is departing from the Canadian market, closing access to the platforms for Canadian players.
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VGW to Exit Multiple US Markets as States Tighten Regulations
Sweepstakes casinos, led by VGW Holdings, face a wave of legislative pressure across the US, as some states decide to restrict or ban online sweepstakes casinos.
States, including Louisiana, Mississippi, New York, and Montana, have taken action to restrict or ban the operation of online sweepstakes casinos that mimic traditional gambling platforms but often operate in legal gray areas.
The Louisiana Gaming Control Board issued 40 cease-and-desist orders last week, which directly included VGW Holdings, which operates Chumba Casino, LuckyLand Slots, and Global Poker. Although Louisiana Governor Jeff Landry vetoed a bill that would have banned sweepstakes casinos outright, regulators were firm on their decision. Regulators believe that enforcement actions are a “show of strength,” and illegal operators won’t be tolerated.
Mississippi followed with 10 orders, targeting VGW’s Chumba Casino. Montana passed a new legislation, taking effect in October 2025, that includes penalties of up to 10 years in prison and $50,000 fines for violations. VGW has already withdrawn from Montana, as well as Delaware, Nevada, and Connecticut.
In New York, regulators passed a bill to ban sweepstakes casinos that use virtual currencies convertible to cash. The penalties will be imposed not only on operators but on payment processors, software providers, and investors as well. In response, VGW announced its exit from New York, joining other operators, such as High 5 Casino and Funzpoints.
The industry has given mixed responses. The Social and Promotional Games Association (which doesn’t represent VGW) welcomed the Louisiana veto, calling it a win for innovation and legal clarity. In contrast, the Social Gaming Leadership Alliance (which represents VGW) encouraged regulators to adopt a reasonable licensing framework.
As regulatory enforcement escalates, VGW Holdings, among the most prominent names in the space, has begun its strategic retreat from multiple US markets.
Shareholders of VGW Holdings approved a takeover offer by company founder Laurance Escalante, making way for the firm to go private amid US regulatory scrutiny.On August...
