Australian-based sweepstake casino and social games operator, VGW, has confirmed that it will be suspending the Sweep Coins system in two states in the United States.
This comes only a few months after the company took a similar solution in New York, where an intensifying crackdown against the sector has been mounting. VGW presently operates a number of brands that offer Sweep Coins as an alternative method to cash out rewards, including Chumba Casino, LuckylandSlots, and Global Poker.
Phasing out of sweep coins is imminent in New Jersey and Mississippi
However, this model is now coming under assault, not just in New York, but also in Mississippi, where the local regulator has sent a cease-and-desist letter giving the company 14 days to comply with the request.
While VGW has maintained that the sweepstakes social casino model is established and based on legal precedent, and therefore not subject to abrupt takedowns. However, the company has chosen to comply with all requests issued against its operations in the United States.
In the meantime, VGW is possibly acting preemptively in New Jersey, a state that is now debating whether to completely outlaw sweepstakes casinos. Presently, a piece of legislation known as A5447 has been able to make it out of both chambers and is awaiting the governor’s signature, which may come at any time in the next days or weeks.
Gov Phil Murphy has 45 days to decide whether he wants to enact the measure, but if the governor fails to act in any way, A5447 will become a law on August 14, 2025. The Social and Promotional Gaming Association (SPGFA) has firmly opposed the measure, arguing that it would suppress innovation, kill jobs, and lessen the state’s competitive edge.
In an email statement sent out to consumers and registered players in both states, VGW had this to say:
"We are reaching out to let you know about an important upcoming change to our Terms and Conditions for Chumba Casino."
"We understand this news may be disappointing and want to assure you that this decision wasn’t made lightly — it was carefully considered based on several business factors," VGW added.
Sweepstakes operators are facing pressure all over the country
In Mississippi, VGW has already taken measures to address the issue. Starting on July 31, 2025, players will not be able to win or collect Sweep Coins in any way, and from August 14, 2025, onward, they will not be able to use the currency to play accounts. All Sweep Coins must be redeemed by September 4, 2025.
As for New Jersey, the company already stopped offering Sweep Coins through any of its usual methods on Tuesday, July 29. The Sweep Coins won’t be able to be used after August 29, 2025, in the Garden State, and the deadline for redeeming the currency is set at September 24, 2025.
Image credit: Unsplash.com
