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Virtual Gaming Worlds (VGW), which operates the leading sweepstakes-based casino website Chumba Casino, will exit the Michigan market after an analysis of the regulatory environment, a company spokesman confirmed.
“Following careful consideration and analysis, we have made the decision to no longer offer our products in the state of Michigan,” a VGW spokesman said in an email late Thursday (October 26).
The sweepstakes social casino sites now unavailable to Michigan residents include Chumba Casino, Luckyland Slots and Global Poker.
Sweepstakes-based games differ from real-money online casino games by allowing players to either play for free or purchase credits to fund their game play and then receive additional free credits. Only free credits awarded are redeemable for cash or other prizes.
On Chumba Casino’s website, VGW states that is so-called Sweeps Coins games have “always been free to play” and that the company has given away more than 60m free Sweeps Coins without any purchase.
By structuring the games this way, VGW has been able to operate in all U.S. states except for Washington and Idaho because the purchases can be considered as entries rather than wagers.
“We have not done this lightly and are 100 percent focused on ensuring all impacted customers are well informed about the changes and supporting them through this transition,” the spokesman said of the Michigan decision.
“As we've repeatedly said, we actively monitor developments in the jurisdictions we operate in to ensure we are well placed to respond,” VGW said in its statement.
“While we are disappointed our players in Michigan will no longer be able to play our highly-rated social games, we always consider the interests of all of our stakeholders and remain focused on VGW’s strong long-term outlook.”
The Michigan Gaming Control Board (MGCB) did not directly comment on whether the regulator of traditional land-based casino gaming and the state's thriving online casino market was involved in the decision.
“We encourage anyone offering gambling outside of the regulated market in Michigan to carefully consider the legality of their operations, as state law strictly prohibits all gambling which is not expressly authorized,” MGCB public information officer Lisa Keith told Vixio GamblingCompliance in an email on Friday (October 27).
Keith said the MGCB would “continue to investigate anyone who is alleged to be offering illegal gambling in the state.”
The decision of VGW to withdraw its sweepstakes casino games from Michigan comes amid heightening scrutiny of new variants of fantasy sports contests, which critics insist have crossed the line between fantasy contests and sports wagering.
Earlier this month, Michigan approved new fantasy contest rules that prohibit pick’em style games, or offering contests that include a “proposition selection or fantasy contests that have the effect of mimicking proposition selection.”
