Leading social gaming operator VGW has confirmed it will be phasing out its sweepstakes-based offerings in New Jersey.
The decision impacts its popular Chumba Casino and Luckyland Casino products and comes as a direct response to new regulatory enforcement in the Garden State that will see such sweepstakes models officially prohibited.
The move marks a significant development in the US gaming landscape, as New Jersey becomes the first state to formally ban a practice it was once considered a prime candidate to regulate.
VGW clarified that while players in New Jersey will no longer be able to participate in promotional play (sweepstakes), they will still be able to access the platform’s free-to-play titles using the Gold Coin system.
The company has stated it is committed to informing its customers of any further adjustments as the situation evolves.
In an exclusive statement to Gambling Insider, a VGW spokesperson addressed the decision.
We can confirm that following careful consideration, we’ve informed players of a decision to phase out Promotional Play in the state of New Jersey. This decision wasn’t taken lightly and was made in the best interests of all our stakeholders following recent decisions by legislators.
This exit is the latest in a series of regulatory challenges for VGW across the US. The operator is also reportedly set to cease operations in Mississippi following a cease-and-desist order.
Earlier in the year, Delaware’s Division of Gaming Enforcement issued a similar order against VGW’s Luckyland for illegal online slot activity.
Furthermore, in May, VGW preemptively withdrew its sweepstakes operations from New York in anticipation of a bill designed to ban the model.
The spokesperson added:
We acknowledge increased interest in our innovative industry… and are committed to respectful engagement on establishing modern, appropriate regulatory and taxation structures. That remains the case in New Jersey, as it does in all states.
