VGW, the group behind Chumba Casino, Global Poker, and LuckyLand Slots, announced to players in New Jersey that it is phasing out Sweeps Coins in the state.
From July 29, players are no longer able to earn new Sweeps Coins, but can still use their remaining coins to play games on site until August 26.
After that, any coins left over may be converted to prizes up until September 24. The phase out comes as New Jersey lawmakers passed a ban on online casinos using the dual-currency model employed by VGW and other sweepstakes operators.
VGW Notifies Players Through Email
VGW sent out an email to players in New Jersey confirming the phase out.
“We understand this news may be disappointing,” the email reads, “and want to assure you that this decision wasn’t made lightly — it was carefully considered based on several business factors.”
Many other operators had already withdrawn from the state following the introduction and support for Assembly Bill 5447.
The bill is still awaiting Gov. Phil Murphy’s approval, but Stake.us, High 5 Casino, and B-Two Operations — which owns McLuck, Mega Bonanza, and Hello Millions, all pulled out of New Jersey in anticipation of a legal crackdown.
New Jersey joins a growing list of states to pass legislation targeting sweepstakes casinos. Connecticut, Montana, and New York have all approved bans on the platforms, while a bill remains active in California.
Players Restricted To Using VGW Gold Coins
VGW confirmed players in New Jersey will still be able to engage on the platforms using Gold Coins. The email send to users stated, “While Promotional Play will no longer be available, you’ll still be able to enjoy all your favorite games in Standard Play using Gold Coins.”
Players can purchase Gold Coins for real money to play on the sites, but they cannot redeem them back for cash. This is allowed under the terms of AB5447, which restricts platforms from allowing players to use virtual currencies to play casino-style games and win prizes that can be exchanged for real-money.
VGW has placed similar restrictions in other states with legislation against sweepstakes casinos, including Montana, New York, and Connecticut. In total, the operator has withdrawn Sweeps Coins from ten states across the country.
SGLA Speak Out Against New Jersey Legislation
The Social Gaming Leadership Alliance (SGLA), a sweeps advocate group led by VGW, spoke out against the bill in New Jersey.
SGLA Executive Director and former Congressman Jeff Duncan said, “These bills are built on flawed definitions and would have broad, unintended consequences—impacting everything from digital games to local retail promotions.”
The organization also warned that bills clamping down on sweepstakes casinos will lead players to offshore casinos, with fewer consumer protections.
