Chumba Casino and Luckyland withdraw from Connecticut

Chumba Casino and Luckyland have withdrawn from Connecticut, a change in their terms and conditions caught by several media outlets suggests.

The sweepstakes businesses have come under increased scrutiny, with lawmakers and industry organizations, such as the American Gaming Association, criticizing the operational model of these companies, and calling them a form of unlicensed gambling.

VGW quietly changes terms to reflect withdrawal from Connecticut

Earlier this year, Connecticut issued a cease-and-desist letter against VGW, the operator of the two prominent brands, prompting it to swiftly update its terms and add the Constitution State to Washington, Montana, Michigan, and Idaho, as some of the other states that have clearly objected to the sweepstakes model run by the companies.

The letter simply stated that Connecticut found the offer by VGW to not be aligned with state laws and asked the operator to withdraw operations. The letter read:

"VGW is hereby ordered to immediately cease and desist offering its games and services to Connecticut customers. Failure to comply may result in additional action including, but not limited to, civil penalties under CUTPA and/or criminal penalties under Conn. Gen. Stat. 53-278b and 53-278d."

VGW has weighed the risks and decided that it would benefit from withdrawing. The issue for the company, though, is that more states may follow a similar course of action, especially now that there is industry lobbyism to shut down the sector, or greatly limit its reach.

AGA has begun talking publicly about how the sweepstakes sector is not complying with gambling regulations while offering a product that is, in its essence, a game of chance.

New offensive begins against the sweepstakes sector in the US

The argument that you do not pay or do not have to pay real money to gamble has been dismissed, as sweepstakes casinos’ rewards can be cashed out for real money, even if it is in a roundabout way that exempts the business from clearing the same high bar that gambling companies are obligated to.

"The lack of regulatory oversight presents many risks for consumers as well as the integrity and economic benefits of the legal gaming market through investment and tax contributions," AGA’s statement earlier this year read. AGA has doubled down on its offensive, but so have sweepstakes companies.

In response to growing enmity towards the sector, prominent operators from the sector have created the Social and Promotional Gaming Association. The body does not include VGW.

In the meantime, states have also acted against offshore operators. Bovada has been ousted from several US markets already as lawmakers and watchdogs are increasingly aware of the role offshore operators play. Bovada most recently left three states.

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