VGW Halts Sweepstakes Promotions in New Jersey
Virtual Gaming Worlds (VGW) has announced that it will stop offering sweepstakes promotions in New Jersey, in response to recent legislation prohibiting sweepstakes model wagering in the state.
LISTEN TO THIS ARTICLE:Like other sweepstakes, VGW's platforms, including LuckyLand Slots, Chumba Casino, and Global Poker, allow users to play games using Gold Coins (GC) and Sweeps Coins (SC). While SC can be redeemed for real-money prizes, GC can be purchased with real money but not redeemed for cash.
On June 30, bill A5447, a proposal aiming to ban sweepstakes casinos in the Garden State, was passed by both houses of the state legislature on June 30, with a decisive vote of 34-5 in the Senate and 69-10 in the Assembly.
The bill prohibits the "sweepstakes model of wagering" or online gambling platforms with dual-currency systems and establishes new penalties for unlawful gambling operations and practices, enforced by the New Jersey Division of Consumer Affairs and Division of Gaming Enforcement. However, it allows fast food companies and retailers to run promotional contests without entry fees. It now awaits signature from Governor Phil Murphy to enact it into law.
While the bill was still being considered in the legislature, some operators like High 5 Casino had exited the state. VGW is not completely leaving the market; it is adjusting its operations in New Jersey to comply with the upcoming ban. The operator has already informed players in the state of this development.
Our valued players in New Jersey will still be able to enjoy all their favorite free-to-play games using Gold Coins, and we are 100% focused on ensuring players are fully informed about the changes and that this transition is as smooth as possible. But we understand this is an adjustment after many years and some players may be disappointed. This decision wasn't taken lightly and was made in the best interests of all our stakeholders following recent decisions by legislators.
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VGW Adapts to Regulations
New Jersey adds to the list of jurisdictions where VGW has stopped offering sweeps play because of legislative bans, including Idaho and New York. In some other states, like Louisiana, Montana, and Connecticut, the company chose to exit completely.
VGW has also started charging sales tax on GC purchases in certain US states where it continues to offer sweepstakes games. VGW hasn't released a comprehensive list of states where the tax is being applied, but it has confirmed that the change is implemented across its sites. The tax rates also vary depending on the player's location.
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