However, unlike other sweepstakes operators who have exited the state entirely, the company plans to continue offering Gold Coin play for the foreseeable future.

In an email to customers, the company announced that they will still be able to acquire and use eligible Sweepstakes Coins until June 2. After that date, they can only redeem eligible coins until August 1, at which point sweepstakes play will cease.

VGW Follows Mass Exodus Out of New York

The VGW announcement is unsurprising. At the end of March, over a dozen operators, such as High 5, Zula, Fortune Coins, and McLuck, exited New York.

The mass exodus was seen as a precautionary move. At the time, a Senate bill to ban the platforms moved out of committee to the Senate floor. Notably, at the time, VGW decided to wait and continue operations.

While VGW initially held out, the decision to follow the others could be due to a companion assembly bill being passed by the Assembly Racing and Wagering Committee, signaling a momentum in a potential ban.

The Senate bill reached a third reading in March, but there has been no progress since then. Similarly, the Assembly proposal moved to the Codes Committee but has yet to receive a hearing.

The New York legislative session adjourns on June 12, leaving a limited time for the bills to pass, which makes the move by VGW surprising to some. 

However, that could mean there are indications that lawmakers may move quickly at the end to possibly follow Montana’s lead, which became the first state to officially ban sweepstakes casinos.

The Latest State Exit by VGW

VGW’s decision to cease offering sweepstakes play in New York marks the latest exit by the operator in recent months.

Most recently, the company exited Delaware after the state’s Delaware Division of Gaming Enforcement issued a cease-and-desist order against VGW.

In December 2024, the company’s Global Poker platform announced its exit from Nevada, effective April 2025. Chumba Casino and LuckyLand Slots had already ceased operations in the state at the time.

Before that, in October 2024, VGW ceased operations in Connecticut after receiving a cease-and-desist letter.

Despite the exits, VGW has not been among the most compliant sweepstakes operators.

While it has exited Delaware, it did so after receiving a second such demand by the state’s regulator. Initially, the Delaware Division of Gaming ordered that the company withdraw its platforms in 2023. However, all three remained active.

Meanwhile, in March, Maryland sent cease-and-desist orders to several sweepstakes operators, including the VGW platforms. While others like McLuck and High 5 have complied, VGW still lists Maryland as an eligible state.

The Creation of the Social Gaming Leadership Alliance

The New York sweeps play exit comes on the heels of the announcement of the formation of the Social Gaming Leadership Alliance (SGLA). SGLA is a trade group that represents the interests of sweepstakes operators.

The goal of SGLA is to educate the public and lawmakers, helping them understand the growing sweepstakes casino industry. The trade group promotes the free-to-play model, emphasizing responsible innovation, player protection, and industry integrity.

In addition to becoming a founding member of SGLA, VGW decided to raise its minimum age to 21 in February. The move was likely to demonstrate a commitment to regulator alignment. The change aligns VGW’s platforms to regulated online casinos, where the minimum age is 21. Traditionally, the minimum age for sweepstakes casinos is 18 years old.

The post VGW Ends Sweepstakes Play in New York, Joining Wave of Exiting Operators appeared first on CasinoBeats.

The plaintiff, Dennis Boyle, is suing Sweepsteaks Limited, claiming Stake.us constitutes an illegal gambling website. The case alleges that Stake.us is in breach of California civil code, given that it provides unlawful online gambling and engages in unfair business practices. 

Allegations Center on Stake Virtual Currency and Playthrough Rules

The lawsuit was remanded and escalated from state court to federal court. The case centers around Stake’s social casino and sweepstakes product. Boyle alleges that the company provides real-money online wagering under the guise of free gaming. 

Sweepstakes and social casinos effectively use a dual-currency system. In the case of Stake, digital currencies such as Stake Cash and Gold Coins are alleged proxies for real-money wagering as they are used to play promotional games and sweepstakes. 

Boyle’s complaint states: “Because social casinos operate as if they are not subject to gambling regulations, they do not comply with the regulations that govern the operation of slot machines or other gambling.”  

“A user playing promotional games with Stake Cash is gambling in the purest sense – they are wagering something of value (Stake Cash) on a random event with the hope and intent of winning more Stake Cash than wagered,” the complaint continues. 

It also alleges that Stake’s play-through requirement, tied to Stake Cash, constitutes unfair business practices. Stake’s welcome bonuses and promotional giveaways are subject to a 300% playthrough wagering requirement before any winnings can be redeemed. 

Boyle’s individual claims do not exceed $75,000 in the claim, but the plaintiff is seeking injunctive relief with the shuttering of the site. 

This is not the first lawsuit brought by California resident Boyle. The former gambling addict also has an ongoing case with Yellow Social Interactive, centered around sweepstakes brand Pulsz. 

Boyle also seeks injunctive relief, accusing Pulsz of running operations that constitute an online casino without a license. 

Sweepstakes Casinos Face Rising Scrutiny Nationwide

Online sweepstakes casinos and sports events contracts are under intense regulatory scrutiny across the United States.

Mississippi’s proposed legislation to ban sweepstakes casinos recently died at the Committee level. The Magnolia State Senate was the first chamber in the United States to pass a bill prohibiting sweepstakes casinos. Representatives then amended the wording in early March to include sports betting language. 

Ultimately, the Senate rejected the amended legislation due to the language change. 

The Mississippi Senate became the first chamber in the U.S. to pass a bill banning sweepstakes casinos. In early March, the House of Representatives amended the bill to include language on online sports betting.

After the deadline for conference committee reports, the bill took its place in the legislative graveyard. 

Legislation to regulate or prohibit online sweepstakes casinos is still pending in Arkansas, Florida, Maryland, New Jersey, and New York. As often happens with United States law, if one state sets an example, others may follow in quick succession. 

The post Stake Faces Lawsuit in California Over Alleged Illegal Online Gambling appeared first on CasinoBeats.