VGW exits New York: Is the Sweeps casino era over?

The decision comes amid growing legislative pressure and follows similar moves in multiple other states, raising broader questions about the future of the sweepstakes casino model in the United States.

The announcement outlines a full discontinuation of “Promotional Play”, better known as gameplay involving Sweeps Coins. 

While access to free-to-play games using Gold Coins will remain unchanged, all mechanisms for acquiring and redeeming Sweeps Coins will be terminated.

Timeline

Starting June 2, players in New York will no longer be able to acquire Sweeps Coins through any channel, including daily login bonuses, Gold Coin purchases, promotional contests, or mail-in requests. 

Users will retain the ability to use any existing Sweeps Coins for gameplay until July 2.

Redemption for prizes will continue until August 1, at which point all Sweeps Coins will be rendered void.

VGW emphasized its commitment to a smooth transition, noting that it is “100 percent focused on ensuring players are fully informed about the changes.”

Why now?

VGW’s departure doesn’t come as a major surprise. 

In March, New York State Senator Joseph Addabbo introduced Senate Bill S5935, a sweeping proposal to explicitly ban sweepstakes-style gambling. 

The bill, which includes penalties for operators, suppliers, and payment processors, has triggered an exodus from the state by multiple platforms, including High 5 Casino, Hello Millions, and Funzpoints.

Even though Addabbo’s bill has yet to pass, the momentum behind it reflects mounting discomfort with the regulatory “gray zone” sweepstakes casinos have occupied for years.

VGW’s preemptive withdrawal signals a pivot toward long-term compliance over short-term risk.

Previous withdrawals

VGW’s retreat from New York marks the eighth such state-level exit, following previous withdrawals from Connecticut, Delaware, Idaho, Michigan, Montana, Nevada, and Washington. 

The trend echoes recent developments in Montana, where lawmakers took a more drastic step, placing an outright ban on sweepstakes casinos altogether.

As previously reported on this site, Montana’s stance was one of the first clear signals that the tolerance for unregulated gambling frameworks may be reaching its limit across the US.

A divide in the social gaming industry?

The growing pressure has fractured the sweepstakes gaming industry. 

While the Social and Promotional Gaming Association (SPGA) continues lobbying against bans and pushing for dialogue, VGW recently co-founded the Social Gaming Leadership Alliance (SGLA), a newer group focused on compliance, responsible play, and internal regulation.

When speaking about the decision, a VGW spokesperson stated;

We understand this is an adjustment after many years. This decision wasn’t taken lightly and was made in the best interests of all our stakeholders.

Can the sweepstakes casino model survive?

Once seen as a clever workaround for real-money gaming in unregulated states, the sweepstakes casino model is now facing existential threats. 

VGW’s exit from New York, one of the most populous and commercially important states, underscores how quickly the landscape is shifting.

The question now isn’t whether other operators will follow, but whether the model itself can survive without sweeping reform, or if its time has already passed.