Sweepstakes operator, VGW, the operator behind Chumba Casino and Global Poker, has announced its exit from the Canadian online casinos market, citing insufficient market size compared to the United States. The departure will take effect in October 2025, with games and purchases disabled ahead of a final wind-down.
“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,” a VGW spokesperson said in August. “Ultimately, this is a difficult but strategic, isolated decision.”
What Players Need to Know:
- Gold Coin purchases will no longer be available.
- Game access for Canadian players will be blocked in the coming weeks.
- Prize redemptions will remain available through October 23.
While Canada's regulatory enforcement around sweepstakes casinos has remained relatively loose, VGW’s exit reflects broader strategic shifts — especially as several U.S. states crack down on grey market gambling models.
Chumba Casino & Global Poker to Shut Down for Canadians
VGW’s decision marks the closure of two of Canada’s most prominent sweepstakes brands, Chumba Casino and Global Poker, for all Canadian users.
This follows earlier VGW withdrawals from New York and New Jersey, where lawmakers imposed tighter restrictions on the sweepstakes model. The company’s focus now turns to the United States, where it says growth potential far outweighs any remaining upside in Canada.
“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,” the company added.
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Could Sales Tax Policy Have Accelerated the Decision?
Insiders suggest the decision may also reflect recent tax policy changes. Notably, sales tax began applying to Gold Coin purchases, a move that reportedly drew backlash from longtime users. While VGW hasn’t confirmed how much the policy impacted revenue, some speculate it may have contributed to the company's exit.
VGW Shifts Focus to U.S. Partnerships — Especially in California
As VGW retreats from the Canadian marketplace, the company is doubling down on U.S. expansion, particularly in California, where online sports betting remains illegal and sweepstakes models dominate.
In August, VGW made headlines by signing a historic partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria Tribe, becoming the first sweepstakes operator to partner with a tribal gaming entity in California.
“This historic partnership for VGW forms part of the company’s commitment to both support communities and engage with stakeholders,” the company stated. “VGW is committed to being a responsible corporate citizen, setting the gold standard for our industry — including age verification, responsible gameplay, and financial crime compliance.”
What This Means for the Market Landscape
VGW’s exit leaves a noticeable gap in the Canadian sweepstakes casino space, especially for casual players who preferred social casinos over real-money operators. With Chumba and Global Poker exiting the scene, Canadian players will be left with a smaller selection of options unless new operators enter to fill the void.
The move also raises questions about whether provincial regulators will increase scrutiny of remaining sweepstakes-style products that operate in the legal grey area, or continue their current stance of limited enforcement.
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