As regulations tighten across the U.S., Virtual Gaming Worlds (VGW) — operator of Chumba Casino, LuckyLand Slots, and Global Poker — has systematically begun exiting states with legal or enforcement risks tied to sweepstakes casino operations.
VGW has voluntarily withdrawn from key jurisdictions including New York, Nevada, Connecticut, Delaware, Washington, Montana, Michigan, Idaho, and West Virginia. The withdrawal from New York is particularly significant: beginning in mid‑June, users lost access to new Sweeps Coin promotions, and full prize redemptions ceased by August 1.
Similarly, VGW exited Delaware in April after more than two years of regulatory pressure. The state’s Division of Gaming Enforcement had deemed its sweepstakes model incompatible with local law, prompting the withdrawal even though VGW disputed that conclusion.
Regulatory Pressure Mounts
These withdrawals are not isolated incidents. Regulators in Mississippi, Louisiana, and West Virginia have issued cease-and-desist letters and subpoenas to operators, including VGW platforms. In Mississippi, VGW’s Chumba Casino was explicitly targeted by enforcement actions. In West Virginia, nearly 50 subpoenas were sent to sweepstakes operators, triggering widespread exits across platforms.
Meanwhile, Montana became the first state to pass a comprehensive ban on sweepstakes casinos, effective October 2025. VGW exited the state preemptively in response to this legislation.
Why VGW Is Retreating
VGW pioneered the sweepstakes casino model and commanded a dominant position in the sector through brands like Chumba Casino and LuckyLand Slots. But as legal scrutiny and enforcement efforts escalated, the company has begun pulling back to safeguard its broader business interests.
This approach reflects a broader shift: instead of risking penalties or forced deplatforming, VGW is choosing to proactively exit states where legal frameworks are increasingly adverse.
Industry Implications
VGW’s retreat sets a precedent: if even the largest operator in the space recognizes it can no longer safely operate in multiple states, smaller brands and affiliates may follow suit.
At the same time, the industry is coalescing around trade groups like the Social Gaming Leadership Alliance (SGLA), which promotes licensure and regulation as a path forward. But as long as enforcement continues without licensing frameworks in place, operator exits remain the dominant response.
VGW’s voluntary withdrawal from multiple U.S. states underscores the growing legal risk sweepstakes casino operators face, particularly in jurisdictions with active enforcement or pending bans. As states continue to act—with subpoenas, cease-and-desist orders, and legislation—VGW’s retreat signals a major realignment in the industry’s footprint.