The company behind the social gaming and sweepstakes platform, Chumba Casino, stated in a statement to Casino.org that it is shutting down its operations in Canada.

VGW Is Seeking to Focus on the US Market

According to a report initially published by Canadian Gaming Business, Virtual Gaming Worlds (VGW) plans to focus more on its activities in the United States.  Additionally, VGW's Global Poker is exiting the Canadian market.

“We can confirm that following careful consideration, we’ve informed players of a decision to phase out our brands that offer products in Canada (Chumba Casino and Global Poker),” said a VGW spokesperson.

“We understand this is an adjustment after many years and our valued Canadian players may be disappointed. 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.

Strategic Decision, Company Says

“Ultimately, this is a difficult but strategic, isolated decision. Our Canadian business is relatively small, as the vast majority of our players reside in the larger US market, where we will concentrate our management focus, resources and investment going forward.”

Slot machines, table games, and live dealer games at sweepstakes casinos feature a dual currency system that allows for the usage of Gold Coins for free, non-redeemable play and Sweeps Coins, which may be obtained through bonuses or Gold Coin purchases and exchanged for cash and actual prizes.

Free play has a lot of entertainment value because people are frequently competing in tournaments or against friends and family.

Regulatory Opposition

States argue that sweeps, which involve wagering cash-redeemable virtual coins on games of chance, are forms of real-money gaming. As Devin O'Connor of Casino.org has explained on multiple occasions, sweeps casinos have faced regulatory pushback in the U.S. Several well-known sweepstakes casinos, including those run by VGW, have received cease and desist letters.

In Canada, sweepstakes are allowed without any kind of regulation.  According to Canadian Gaming Business, as of October 23, players in Canada will no longer have access to Chumba Casino and Global Poker.