VGW to Exit Canada, Citing Need to Focus on U.S. Legal and Regulatory Battles
VGW Holdings, the parent company of popular online gaming sites Chumba Casino and Global Poker, is pulling out of the Canadian market. The company has framed the exit as a “strategic commercial decision,” but it comes as its sweepstakes-based gaming model faces intense scrutiny from lawmakers and legal challenges in the United States, which accounts for the vast majority of its revenue.
The Timeline for Withdrawal
VGW has announced a clear timeline for the shutdown of its Canadian operations.
- August 28, 2025: Will be the final day for Canadian players to purchase Gold Coins.
- September 25, 2025: All gameplay will cease.
- October 23, 2025: This is the final deadline for players to redeem any remaining Sweeps Coins for prizes.
After this date, the company’s platforms will be fully inaccessible to Canadian customers.
A Strategic Retreat Amid U.S. Pressure
VGW’s decision to leave Canada is not happening in a vacuum. It comes as the company faces intense scrutiny in the United States, its most critical market. Over the past year, VGW has withdrawn from roughly a dozen U.S. states as regulators have tightened rules on sweepstakes casino operators. States like New York and New Jersey have introduced legislation aimed at banning these types of games altogether.
Compounding the regulatory challenges is a barrage of legal action. VGW is currently fighting multiple lawsuits, including a nationwide class-action case in California that accuses the company of operating an illegal gambling enterprise. That lawsuit employs a novel legal strategy by being filed on behalf of players’ spouses, an attempt to bypass the mandatory arbitration clauses that have derailed similar cases in the past.
Focusing Resources Where It Matters Most
The withdrawal from Canada is a direct consequence of these U.S. pressures. The American market is estimated to generate approximately 98% of VGW’s global sweepstakes revenue. By exiting the much smaller Canadian market, the company can free up significant legal, lobbying, and compliance resources to focus on the high-stakes battles south of the border.
The move is part of a wider corporate restructuring for VGW. The company is in the process of being taken private by its majority owner, and the resulting entity will be re-registered in Guernsey, a move that is expected to reduce its tax and regulatory burdens.
Ultimately, VGW’s departure from Canada is less about the Canadian market itself and more about the high-stakes fight for survival and legitimacy that the company is currently waging in the United States.
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