As the regulatory environment in North America tightens, social casino giant VGW announced that it will completely exit the Canadian market in October this year, with its Chumba Casino and Global Poker platforms gradually shutting down. This move signifies the company's full shift of resources and strategic focus to the US market.
A VGW spokesperson confirmed to iGB that the Canadian business will officially end on October 23. He emphasized that this was a "difficult but independent and strategically significant decision," not due to regulatory pressure, but based on a realignment of business focus. "Our Canadian player base is relatively small, and the vast majority of our users are in the US, where we will concentrate our investments and operations in the future."
According to the shutdown arrangement, users can purchase gold coins until August 28, game services will end on September 25, and sweepstakes coins can be redeemed until October 23.
This withdrawal comes at a time when several US states are intensifying scrutiny of the sweepstakes model. This model, which uses a "dual currency system" (gold coins and sweepstakes coins) to circumvent online gambling regulations, has long been controversial. This year, states such as New Jersey, Connecticut, and Montana have enacted legislation to prohibit sweepstakes activities, and regulatory bodies in New York and Louisiana have also issued cease and desist orders to several operators, including VGW.
Currently, VGW has exited or reduced operations in at least 11 states in the US, but is also seeking tribal partnerships in California to counter the impending legislative bans. As a major member of the Social Gaming Leadership Alliance (SGLA), VGW is working with industry organizations to try to maintain the legality of the sweepstakes business.
However, a survey by the American Gaming Association (AGA) shows that the majority of the public still views the sweepstakes model as gambling. Facing regulatory pressure, VGW's "exit Canada, protect America" strategy may become a critical test of whether the social casino industry can establish itself in the US.
