NY-based online gambling platform, VGW, halts promotional activities due to tense legal disputes.
VGW Holdings Limits Exits New York Sweepstakes Operations Amid US Regulatory Debates
In a move sparked by escalating discussions surrounding social gaming regulation, VGW Holdings Limited has announced the withdrawal of its promotional sweepstakes operations from New York. The decision comes as several US states grapple with the issue of social gaming legislations.
Effective immediately, players in New York can continue using Gold Coins for free-to-play games, but sweepstakes-related promotions will no longer be accessible. A representative from VGW confirmed the shift, stating, "We can confirm that, after careful deliberation, we've informed New York players of our decision to phase out Promotional Play (sweepstakes promotions) in the state."
The company's commitment to its New York clientele remains unwavering. In a press release, the representative 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 dedicated to ensuring players are fully informed about the changes, and that this transition is as smooth and seamless as possible."
VGW has been a significant player in the North American market for over a decade. While this development may provoke some frustration among long-term users, the company believes the decision is timely. The spokesperson further explained, "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." VGW has consistently advocated for clearer regulation and responsible engagement between states and operators.
Tensions around sweepstakes casinos in New York have escalated following the introduction of Senate Bill S5935. Despite an amendment that places the responsibility for defining dual-currency models with the New York State Gaming Commission, the Social and Promotional Games Association (SPGA) expressed concerns that the legislation still fails to adequately address core industry issues.
In the midst of these regulatory debates, a new alliance, the Social Gaming Leadership Alliance (SGLA), has emerged. This alliance, comprising VGW, Playstudios, Yellow Social Interactive, ARB Interactive, B-Two Operations, and Nuvei, seeks to advocate for fair treatment and practical regulation that supports both players and operators. The SGLA intends to work closely with policymakers to ensure a balanced approach to oversight.
Key features and goals of the SGLA include promoting a free-to-play model, responsible gaming practices, protecting players and platforms, and ensuring age-restricted platforms. The alliance's formation is a response to the need for clearer regulatory frameworks and to protect the industry from legislative challenges.
References:[1] Gaming Zen[2] Calvin Ayre[3] eGaming Review[4] Legal Sports Report[5] Online Poker Report
In light of escalating debates about social gaming regulation, VGW Holdings Limited decided to phase out sweepstakes promotions for their New York players, citing the need for clearer regulations and responsible engagement between states and operators. Aligned with this shift, VGW also remains involved in the Social Gaming Leadership Alliance (SGLA), an alliance aiming to advocate for fair treatment and practical regulation in the sports and technology sector that supports both players and operators.
