Louisiana, Mississippi, and New York intensify enforcement against sweepstakes and offshore gaming platforms, putting operators like VGW under heavy scrutiny.
Sweepstakes casino operators faced a wave of enforcement this week as regulators in Louisiana, Mississippi, and New York cracked down on unlicensed and offshore platforms. Among the most prominent targets was VGW Holdings, the Australian company behind Chumba Casino, LuckyLand Slots, and Global Poker.
Louisiana Issues Dozens of Cease-and-Desist Orders
After Governor Jeff Landry vetoed a bill banning sweepstakes gaming, Louisiana regulators quickly signaled they didn’t need new legislation to act. The Louisiana Gaming Control Board (LGCB) issued over 40 cease-and-desist orders to operators it deems noncompliant, including VGW.
“These actions send a clear message,” said LGCB Chairman Christopher B. Hebert. “Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry.”
The veto had initially been praised by trade groups. The Social and Promotional Games Association, which does not include VGW, called the veto “a powerful affirmation that not all online games are gambling.” VGW’s affiliated group, the Social Gaming Leadership Alliance, viewed it as an opportunity to shape fair regulation.
However, the LGCB took a tougher view, stating that existing authority was sufficient to clamp down on unauthorized platforms.
Mississippi Targets VGW, Offshore Sites
Mississippi’s Gaming Commission (MGC) also escalated enforcement, sending 10 cease-and-desist orders to a mix of sweepstakes and offshore operators. VGW’s Chumba Casino was among those targeted, alongside well-known sites like Bovada, BetUS, BetOnline, and MyBookie.
MGC Executive Director Jay McDaniel stressed that online casino-style gaming is not permitted under state law: “The MGC will aggressively pursue both domestic and offshore illegal operators, and the MGC is currently providing criminal case files to our state and federal law enforcement partners and requesting prosecution.”
Though a legislative attempt to ban sweepstakes (Senate Bill 2510) failed after being amended to include mobile sports betting, the commission emphasized that current laws already cover such activities.
New York Moves Toward Ban After Enforcement Blitz
Meanwhile, New York lawmakers passed Senate Bill S5935A, aiming to formally ban sweepstakes-style games. The legislation passed both houses swiftly and awaits Governor Kathy Hochul’s signature.
The bill follows a March crackdown in which Attorney General Letitia James issued 26 cease-and-desist orders targeting VGW’s main brands. By late May, VGW had pulled out of the New York market.
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure and unlawful,” said New York State Gaming Commission Chairman Brian O’Dwyer. “I have been very vocal about the need to crack down on these operations.”
Industry Under Growing Pressure
VGW, already facing criticism from investors over a lack of financial transparency, now finds itself at the center of mounting regulatory action. Founder Laurence Escalante recently responded to critics by stating that those who doubted his leadership should “sell off.”
The week’s coordinated moves by state regulators suggest that the legal landscape for sweepstakes operators is quickly shifting—raising the stakes for companies operating in this gray area of U.S. gambling law.
Source:
“VGW and other sweepstakes operators face tough week across the US as legislators, regulators crack down”, igamingbusiness.com, Jun 18, 2025
The post U.S. States Ramp Up Pressure on Sweepstakes Casino Operators first appeared on RealMoneyAction.com.