VGW to End Sweepstakes Model in Mississippi and New Jersey

VGW to Transition Away from Sweepstakes Coins in Key States

Virtual Gaming Worlds (VGW), an Australian-based operator of sweepstakes platforms, has announced that its popular brands—Chumba Casino, Luckyland Slots, and Global Poker—will be discontinuing their dual currency system in the states of Mississippi and New Jersey. This change will mark a shift toward operating as a more conventional social casino.

Details of the Sweepstakes Coin Phase-Out

VGW alerted its customers via email about an upcoming modification to the terms of service for Chumba Casino. Starting July 31, 2025, Sweeps Coins will no longer be available in Mississippi. VGW expressed that this decision was made thoughtfully after weighing several business considerations. Although the promotional currency will be removed, players will still enjoy access to all games using Gold Coins in standard play mode.

From the specified date, acquiring Sweeps Coins through any method—including login rewards, contests, or bonuses connected to Gold Coin purchases—will end. The company will also stop issuing postal request codes for Sweeps Coins. Gameplay involving Sweeps Coins will be disabled on August 14, and the acceptance of mail-in requests for these coins will cease. However, players will still be able to redeem any previously earned Sweeps Coins until September 4, after which redemptions will no longer be available.

Regulatory Challenges Impacting Sweepstakes Casinos

The decision by VGW seems to reflect increasing regulatory pressures facing sweepstakes casinos across the U.S. This industry-wide scrutiny has led to policy shifts, including VGW recently implementing sales tax charges on purchases in response to heightened legal oversight.

Critical regulatory moves include Mississippi’s gaming regulator issuing a cease-and-desist order against VGW, as well as New Jersey’s legislature passing Bill A5447, which seeks to ban sweepstakes gambling operations. The bill is awaiting the final decision by Governor Phil Murphy and will automatically become law if no action is taken within 45 days, with the deadline falling on August 14.

Industry Perspective and Market Impact

Adding to the context, Laurence Escalante, who recently made a substantial $3.2 billion bid to fully acquire VGW, noted the intensifying regulatory climate surrounding sweepstakes markets. This growing pressure has become a significant factor influencing VGW’s strategic direction and may signal broader changes in the social casino sector.