USA
In September 2024, I outlined how Virtual Gaming Worlds (VGW), operator of Chumba Casino, LuckyLand Slots, and Global Poker, was the main target in the rising crackdown on sweepstakes casinos across the United States. Today, VGW finds itself at the center of mounting legal pressure, regulatory exits, and corporate restructuring.
VGW's Rise and Mounting Scrutiny
VGW pioneered the sweepstakes casino model in 2012 when founder Laurence Escalante launched Chumba Casino. For years, VGW dominated the US market, achieving a peak market share of around 90 percent. Although competitors have entered the scene, reducing VGW’s share to about 50 percent by 2024, it remains the industry’s largest operator. The company reported over $6 billion in revenue and nearly $500 million in profit for fiscal year 2024.
With market leadership has come growing attention from regulators and lawsuits. By late 2024, VGW had received cease-and-desist orders or faced legal action in Connecticut, Delaware, Georgia, Kentucky, and Michigan. Unlike smaller operators that often withdraw early, VGW typically remains in contested states until legal pressure becomes too great.
State Withdrawals Accelerate in 2025
In April 2025, VGW exited Delaware after more than two years of legal back-and-forth following a cease-and-desist order. Delaware’s Division of Gaming Enforcement praised the decision, stating that VGW’s sweepstakes model violated state law.
A month later, VGW announced its phased withdrawal from New York. Starting in June, players lost access to new Sweeps Coins, followed by a complete shutdown of promotional play and redemptions by August. Only Gold Coin free-play remains available in New York. It's likely in anticipation of the complete sweepstakes casino ban in New York.
These exits add to previous withdrawals from Connecticut, Kentucky, Montana, and others, shrinking VGW’s once dominant US presence.
Ongoing Legal Challenges
VGW continues to battle multiple private lawsuits across the country, with plaintiffs seeking to classify sweepstakes gaming as illegal gambling. Some cases have been settled, including a $11.75 million payout in Kentucky, but no plaintiff has yet successfully challenged the sweepstakes model in court. Still, the mounting legal costs and uncertainty create financial pressure for VGW.
Escalante Moves to Take Full Control of VGW
In June 2025, Escalante announced plans to purchase the remaining 30 percent of VGW that he does not yet own. This buyout would give him full control of the Australia-based company. The deal values VGW at around $3.2 billion, a conservative figure considering its revenue and profits.
Escalante is utilizing an offshore structure based in Guernsey, which is financed by outside lenders and loans from VGW itself. Current shareholders are being offered financial participation through a special purpose vehicle but would give up operational control. Full ownership allows Escalante to steer VGW’s strategy without interference as legal and regulatory risks continue to evolve.
VGW Launches SGLA to Influence Public Policy
Escalante also helped launch the Social Gaming Leadership Alliance (SGLA), a new trade group aimed at reshaping public perception of sweepstakes casinos as social gaming. The SGLA includes operators managing brands such as Pulsz, McLuck, PlayFame, and the payments processor Nuvei.
The group’s goal is to promote regulation over prohibition. It emphasizes that sweepstakes platforms offer free-play access, responsible gambling tools, and strong age verification. The SGLA hopes lawmakers will adopt a formal regulatory framework instead of outright bans, following a path similar to how companies like FanDuel and DraftKings helped legalize online sports betting after years of legal uncertainty.
VGW Remains the Industry Bellwether
Even with reduced market share and state exits, VGW remains the most influential operator in the sweepstakes space. Many competitors follow its lead, whether raising age limits to 21, leaving risky markets, or joining coordinated sweepstakes industry advocacy efforts.
For now, 2025 has become a defining year for VGW as it fights to protect its business model while facing one of the most challenging legal environments in its history.