VGW Introduces Sales Tax on Sweepstakes Casino Gold Coin Purchases 

Author: Mateusz Mazur

Date: 11.07.2025

Virtual Gaming Worlds (VGW), the Australian operator of Chumba Casino, LuckyLand Slots, and Global Poker, began charging sales tax on Gold Coin purchases across several U.S. states. The move was confirmed by a VGW spokesperson to Sweepsy.com.

Navigating a Changing Legal Landscape

VGW’s decision follows heightened scrutiny of sweepstakes casinos, which operate in a regulatory gray area. Unlike traditional gambling, these platforms use a dual-currency model, Gold Coins for free play and Sweeps Coins for prize redemption, often avoiding taxes on digital transactions.

However, states like California, with its proposed Assembly Bill 831 to ban sweepstakes casinos, have pushed operators to adapt. “We’ve determined it’s the appropriate time to take this action,” VGW stated, updating its terms to include a clause (25.4) that holds players responsible for applicable taxes based on their location.

How the Sales Tax Works

The new policy adds a location-based sales tax to Gold Coin purchases, typically a percentage (e.g., 8% on a $50 purchase adds $4). Historically, sweepstakes casinos avoided taxes by classifying Gold Coins as non-taxable digital entertainment.

VGW’s voluntary tax implementation, effective July 10, is a pivot to integrate into state gaming ecosystems. Players received notifications stating, “Purchases may be subject to tax depending on your location.”

However, this could risk reclassifying Gold Coins as taxable goods, potentially inviting audits, though VGW’s legal team appears to have vetted the move.

The tax policy affects VGW’s 1.2 million monthly U.S. players, particularly in states with sales tax frameworks, adding costs to Gold Coin bundles that fuel gameplay.