The decision marks the latest in a series of strategic exits from US states where regulatory scrutiny of social and sweepstakes casinos is intensifying. It comes despite some minor victories in the sweepstakes battle.
The company communicated its plans over the weekend via email to New York-based users, according to trade media site Sweepsy.
The email informed VGW’s users that while access to free-to-play games using Gold Coins will remain, all functions related to Sweeps Coins will be terminated over the coming months.
According to VGW, the phase-out process will begin on 2 June and conclude entirely by 1 August.
Starting 2 June, players in New York will no longer be able to acquire Sweeps Coins through any channel.
This includes methods such as daily login rewards, purchases of Gold Coins (which often come with bonus Sweeps Coins), participation in promotional contests, or through mail-in requests.
Any requests for Sweeps Coins submitted by mail after this date will also be disregarded.
Users with remaining Sweeps Coins will retain the ability to use them for gameplay until 2 July. After that, all gameplay using Sweeps Coins will cease.
VGW clarified that while players will not be able to obtain or use Sweeps Coins after 2 July, they will still have the ability to redeem them for prizes until 1 August.
After this final date, prize redemptions using Sweeps Coins will no longer be possible under any conditions.
A company spokesperson said they are “100 percent focused on ensuring players are fully informed about the changes” and that the process will be as seamless as possible, according to Sweepsy.
The withdrawal from New York reflects a broader trend in the industry, as other sweepstakes gaming operators have already vacated the state in response to recent legislative developments.
High 5 Casino, Hello Millions, McLuck, Funzpoints, and several others have exited the New York market in the wake of growing legal pressure.
A key catalyst for these departures appears to be a legislative initiative spearheaded by State Senator Joseph Addabbo.
The bill, introduced this past March, seeks to explicitly ban sweepstakes-style gaming operations in New York.
This proposed legislation builds on long-standing concerns among some lawmakers about the regulatory grey area in which sweepstakes casinos operate, particularly in states without formalised online gambling laws.
The Social and Promotional Gaming Association (SPGA), a trade group representing several sweepstakes operators but not including VGW, has opposed Addabbo’s bill and other similar efforts across the country.
The organisation has lobbied to preserve the status quo for sweepstakes casinos, arguing that their model offers entertainment without the same risks associated with traditional gambling.
However, their attempts to influence policy in New York have not succeeded in stemming the tide of operator exits.
VGW’s withdrawal from New York follows similar moves in other states where the regulatory landscape has proven increasingly inhospitable to sweepstakes platforms.
Prior to this announcement, the company had already ceased operations in Connecticut, Delaware, Idaho, Michigan, Montana, Nevada, and Washington.
The departure of a major operator like VGW from New York indicates a shifting national environment for the social casino and sweepstakes gaming industry.
Once considered a loophole for online gaming in states that do not allow real-money gambling, the model is now under significant pressure from both lawmakers and regulatory authorities.
As more states consider or implement restrictions, operators are being forced to reassess their presence in key markets.
VGW has not provided details on whether it intends to return to the New York market should the legislative climate change.
For now, its focus appears to be on compliance and customer transition while winding down all real prize-related functions tied to Sweeps Coins.
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