Virtual Gaming Worlds (VGW), the parent company of sweepstakes platforms Chumba Casino and Global Poker, has announced its departure from the Canadian market this fall. The shutdown begins in stages and will culminate on October 23, 2025, when Canadian players will permanently lose access to both sites.

The company confirmed the move in emails to customers last week, describing the decision as both strategic and difficult. While Canadian players will soon be shut out, VGW emphasized that its main focus lies south of the border, where the bulk of its business resides.

Exit Timeline and Player Impact

Chumba Casino informed players that access will be phased out gradually over several weeks to allow users time to redeem balances. According to VGW’s published schedule:

  • August 28: Players will no longer be able to purchase additional Gold Coins. However, existing Gold Coins and Sweeps Coins already in accounts can still be used.
  • September 25: Gameplay will cease entirely. At this stage, customers can only redeem Sweeps Coins for prizes.
  • October 23: Final redemption requests close, and Canadian access to Chumba Casino and Global Poker ends permanently.

VGW also noted that after October 23, accounts will become inaccessible. Player data, however, will be stored “to the extent required to meet our legal obligations,” in line with its privacy policy.

In its email to players quoted by Canadian Gaming Business, VGW stated: “We understand this is an adjustment after many years and our valued Canadian players may be disappointed. This decision wasn’t taken lightly and our focus is on ensuring players are fully informed about the changes, and that this transition is as smooth as possible.”

Why VGW is Leaving Canada

Unlike in several U.S. jurisdictions, Canada has not moved to restrict sweepstakes casinos. The dual-currency sweepstakes model remains legal in most provinces, though Québec prohibits it due to stricter gaming laws. Nonetheless, VGW explained that its Canadian player base is relatively small compared to the U.S., making the market less of a priority.

A VGW spokesperson clarified: “Ultimately, this is a difficult but strategic, isolated decision. Our Canadian business is relatively small, as the vast majority of our players reside in the larger U.S. market, where we will concentrate our management focus, resources and investment going forward.”

Industry data supports that rationale. A recent Eilers & Krejcik Gaming study conducted for the Social Gaming Leadership Alliance (SGLA), of which VGW is a founding member, reported that 98% of global sweepstakes gaming revenue originates from the U.S. This means that resources allocated to Canada generated limited returns compared to the far larger American market.

Regulatory Pressures in the U.S.

VGW’s withdrawal from Canada comes during a turbulent year for sweepstakes casinos. In the U.S., the company has scaled back operations in about a dozen states due to new laws and regulatory actions targeting the model.

For example, VGW recently halted Sweeps Coin play in New York after lawmakers advanced a ban, and also exited New Jersey shortly before that state’s prohibition was enacted. Similar moves followed cease-and-desist orders in Louisiana and Mississippi, while operations ended in states like Montana, Michigan, Washington, Connecticut, Delaware, and Idaho.

While sweepstakes functions were suspended in those regions, VGW has continued to offer Gold Coin games since those fall under free-play social gaming and do not involve redeemable cash prizes.

By contrast, the Canadian exit will see both Sweeps Coin and Gold Coin play removed entirely. This makes VGW one of the few major operators to step away from the Canadian market altogether.

Business Restructuring and Future Outlook

VGW’s Canadian retreat coincides with significant corporate restructuring. Earlier this month, shareholders approved an offer from majority owner Laurence Escalante to acquire the remaining 30% of VGW’s shares, effectively taking the company private. The move also shifts VGW’s registration to Guernsey, a decision expected to ease its tax and regulatory burden while the company continues to operate from Australia and the U.S.

Although no specific future plans have been detailed, the exit from Canada consolidates VGW’s resources where they matter most: the American market, which dominates global sweepstakes revenue.

As the company phrased it in its notice to players: “After careful consideration, we’ve made a strategic commercial decision guided by our business priorities. This allows us to focus our resources and investment in a way that supports the ongoing success of the business.”

What remains unclear is whether other sweepstakes operators will mirror VGW’s Canadian exit. Some, such as High 5 Casino, have already left the market earlier in 2025, while others remain active. For now, VGW’s decision signals a sharper U.S. focus at a time when the industry faces mounting scrutiny and regulatory battles.