- Sweepstakes casino to be shut down in Canada by October
- Virtual Gaming Worlds says it will be focusing on U.S. operations
Chumba Casino is closing down its Canadian operations, the company behind the social gaming and sweepstakes platform confirmed in a statement to Casino.org.
VGW Looks to Concentrate on U.S. Market
In a story first reported by Canadian Gaming Business, Virtual Gaming Worlds (VGW) is going to concentrate more on its U.S. operations. VGW’s Global Poker is also leaving the Canadian market.
“We can confirm that following careful consideration, we’ve informed players of a decision to phase out our brands that offer products in Canada (Chumba Casino and Global Poker),” said a VGW spokesperson.
“We understand this is an adjustment after many years and our valued Canadian players may be disappointed. This decision wasn’t taken lightly and our focus is on ensuring players are fully informed about the changes, and that this transition is as smooth as possible.
Strategic Decision, Company Says
“Ultimately, this is a difficult but strategic, isolated decision. Our Canadian business is relatively small, as the vast majority of our players reside in the larger US market, where we will concentrate our management focus, resources and investment going forward.”
Sweepstakes casinos use a dual currency system for slots, table games and live dealer games, allowing for Gold Coins for free, non-redeemable play, and Sweeps Coins, gained through bonuses or acquired through Gold Coin purchase, which can be redeemed for real prizes and cash.
There’s a big entertainment value with free play, since a lot of times people are competing against friends and family, or in tournaments.
Regulatory Pushback
As Devin O’Connor of Casino.org has detailed on several occasions, sweeps casinos have been hit with regulatory pushback in the U.S., with states contending that sweeps, wagering cash-redeemable virtual coins on game of chance, are forms of real-money gaming, with cease and desist letters being sent to several popular sweepstakes casinos, including those operated by VGW.
Sweepstakes are permitted across Canada without regulatory oversight. Canadian Gaming Business reported that players in Canada will no longer be able to access Chumba Casino and Global Poker as of Oct. 23.
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