Summary
- VGW is taking proactive measures in New Jersey and Mississippi by suspending the use of Sweep Coins.
- The measures have been put into action almost immediately, and some are already in effect.
- The transition to Sweep Coins will unfold in multiple phases, with a definitive deadline now established for both states.
Australian-based sweepstake casino and social gaming company VGW has announced it will pause the use of its Sweep Coins system in two U.S. states. This decision follows a similar move in New York, where authorities have been increasingly cracking down on the industry. VGW owns several popular brands, such as Chumba Casino, Luckyland Slots, and Global Poker, which use Sweep Coins as an alternative reward system to cash payouts.
Phasing out of sweep coins is imminent in New Jersey and Mississippi
The traditional model is facing significant challenges, not only in New York but also in Mississippi. In Mississippi, the local regulator has issued a cease-and-desist letter, demanding compliance within 14 days. VGW argues that their sweepstakes social casino model is both established and backed by legal precedent, suggesting it's immune to sudden shutdowns. Nevertheless, the company is choosing to comply with all regulatory requests within the U.S. Meanwhile, in New Jersey, VGW is likely taking proactive steps as the state considers a complete ban on sweepstakes casinos. Legislation, labeled A5447, has successfully passed through both chambers and is now awaiting the governor's signature, which could happen any day now. Governor Phil Murphy has 45 days to decide whether to sign the bill. If no action is taken, A5447 automatically becomes law on August 14, 2025. The Social and Promotional Gaming Association (SPGFA) stands firmly against it, claiming it would stifle innovation, jeopardize jobs, and weaken the state's competitive position. In a heartfelt email to customers and registered players in both states, VGW shared this message: We want to make you aware of an important change to our Terms and Conditions for Chumba Casino. We know this news may be disappointing, and we want to assure you that the decision was not made lightly; it was carefully considered based on several business factors. Pressure is mounting on sweepstakes operators across the nation. In response to the Mississippi regulator, VGW will implement changes starting July 31, 2025. Players will no longer be able to win or collect Sweep Coins, and from August 14, 2025, the currency can no longer be used for gameplay. All Sweep Coins must be redeemed by September 4, 2025. In New Jersey, the company has already ceased offering Sweep Coins through usual channels as of Tuesday, July 29. These coins will become unusable after August 29, 2025, and must be redeemed by September 24, 2025.
