VGW Introduces New Tax on Gold Coin Transactions

VGW, the company behind popular sweepstakes-style casinos, has quietly rolled out a new policy that may catch players off guard. Starting July 10, a sales tax now applies to gold coin purchases, marking a notable change in how the platform operates.

Good to know

• Gold coin tax rate depends on where a player lives.
• Not all states have sales tax, but local taxes may still apply.
• VGW has not revealed exactly which states are affected.

VGW made the call to introduce the tax after reviewing changes in the legal landscape. According to a company spokesperson, it felt like “the appropriate time” to make the move, especially as the sweepstakes model continues to face questions across the country.

Gold coins, which players can buy to access more games and features, had not been taxed before. Now, depending on state and local laws, players might notice a slightly higher charge at checkout. There are 45 states and Washington D.C. that collect sales tax, ranging from California’s high of 7.25% to Colorado’s lower 2.9%. Some cities and counties tack on their own local taxes, making the final cost vary by user location.

“We acknowledge this is a change for some of our players,” said a VGW representative. “But as the legal framework has evolved over time, we’ve determined it is the appropriate time to take this action. This is part of our commitment to upholding the highest standards of integrity and compliance.”

The update did not come with a detailed list of affected states, so players will need to check their receipts or account details to see how much they are being charged. VGW said players in states without a sales tax may not notice any difference, while those in taxed states will see adjusted totals.

Sweepstakes casinos like VGW run on a dual-currency system—players use both gold coins and sweeps coins to enjoy games. While these platforms do not offer cash prizes, users can win more coins, gift cards, or other rewards. Gold coin purchases are optional, but they give access to more features and game time.

Meanwhile, the wider gambling space in the U.S. is shifting quickly. More states are joining the sports betting boom, interest in online casinos is growing, and sweepstakes platforms are drawing more legal attention. Louisiana became the latest state to officially ban sweepstakes casinos after its attorney general reversed a previous veto. California also moved toward a ban, with its Senate passing a bill just days after AG Rob Bonta stated that daily fantasy sports should be considered illegal.

VGW appears to be adjusting to this changing environment. By applying sales tax, the company is aligning its practices more closely with traditional e-commerce and digital goods providers, likely as a precaution in case more states target sweepstakes casinos with tighter regulation.

The company said its goal is to help players understand the change. “Our focus now is on ensuring players are well informed and supported as required,” the spokesperson added.

Push for Private Ownership

VGW is not just dealing with regulatory shifts—it may also see a major ownership change soon. Laurence Escalante, the founder of VGW, is aiming to take full control of the company. Using his private investment firm, Lance East Office, he has made what he calls his final offer: $3.2 billion to acquire the remaining 30% stake from minority shareholders, valuing each share at $5.05.

A shareholder vote is scheduled for August 1, which will determine whether the buyout goes through.

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