VGW Holdings Limited has started pulling its promotional sweepstakes operations out of New York. The decision arrives just as debates around social gaming regulation heat up across several U.S. states.
Good to know
- Players in New York can still use Gold Coins to enjoy free-to-play games.
- New York’s recent bill changes have triggered concern among industry groups.
- A new alliance, SGLA, now aims to represent social gaming firms at the policy level.
VGW recently notified players in New York about its plan to end sweepstakes-style promotions in the state. While the company will continue offering Gold Coin-based gameplay, sweepstakes-related offers will no longer be available. A company representative confirmed the change, saying: “We can confirm that following careful consideration, we’ve informed players of a decision to phase out Promotional Play (sweepstakes promotions) in the state of New York.”
VGW said the decision came after weighing various factors. The spokesperson added, “Our valued players in New York will still be able to enjoy all their favorite free-to-play games using Gold Coins, and we are 100 percent focused on ensuring players are fully informed about the changes, and that this transition is as smooth and seamless as possible.”
The company has served North American players for over a decade. While the move might frustrate some longtime users, VGW believes the decision is timely. “We understand this is an adjustment after many years and some players may be disappointed. This decision wasn’t taken lightly and was made at this time in the best interests of all our stakeholders,” the spokesperson added. VGW also stated that it supports clearer regulation and responsible engagement between states and operators.
Tensions and Concerns
Tensions over sweepstakes casinos have intensified in New York following the introduction of Senate Bill S5935. The bill initially drew strong reactions due to concerns it would criminalize widely used promotional strategies. In response, lawmakers added an amendment that places the responsibility for defining dual-currency models in the hands of the New York State Gaming Commission.
The Social and Promotional Games Association (SPGA) responded to the changes but said the revision still fails to tackle core concerns. The group sees gaps in how the legislation protects businesses that rely on promotional sweepstakes, both large and small.
In the middle of this debate, several social gaming companies have teamed up to form the Social Gaming Leadership Alliance (SGLA). The alliance includes VGW, Playstudios, Yellow Social Interactive, ARB Interactive, B-Two Operations, and Nuvei. Their goal is to advocate for fair treatment and push for practical regulation that supports both players and operators. SGLA members plan to work closely with policymakers to ensure a balanced approach to oversight.
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