Sweepstakes gaming operator VGW has announced that it will increase the minimum player age for all its platforms, seemingly to make them align with gambling regulations across the US.
The decision by VGW to raise the minimum age requirement for its three sweepstakes gaming sites — Chumba Casino, LuckyLand Slots, and Global Poker — from 18 to 21 represents a significant shift for the company.
VGW’s decision is not being implemented all at once but rather through a phased approach. The first step began on 12 February, when new players under the age of 21 were prevented from signing up for any of the operator’s gaming sites.
However, existing players between 18 and 20 were still allowed to continue playing with whatever currency they had left but were prohibited from purchasing additional Gold Coin packages.
The second phase, which takes effect on 19 February, will entirely bar players under 21 from participating in any games on Chumba Casino, LuckyLand Slots, or Global Poker, even if they are only playing with Gold Coins.
Additionally, these players will no longer be able to redeem Sweeps Coins, a crucial component of sweepstakes-style gaming that allows users to win cash prizes.
Finally, on 17 April, full access restrictions will take effect. All players under 21 will be locked out of their accounts, meaning they will not be able to log in or access any features of the VGW sites.
Once these users turn 21, they will need to contact customer support to regain access to their accounts, as the process will not be automatic.
Strategic timing
VGW’s decision comes at a time when the sweepstakes gaming industry is facing mounting scrutiny from lawmakers and regulatory bodies.
Several states, including Connecticut and Maryland, are considering bills that could ban sweepstakes gaming entirely.
Meanwhile, New York is evaluating an online casino bill that could effectively eliminate the presence of sweeps casinos in the state. Mississippi has already taken significant legislative action, with the state Senate passing a bill aimed at banning sweepstakes sites.
In addition to legislative challenges, sweepstakes gaming sites are also facing legal battles. While VGW recently secured a major victory in Florida, lawsuits in California and Washington present a new legal threat.
These lawsuits take a different approach than traditional gambling-related claims by focusing on “public relief,” which could set a precedent that affects the entire industry.
Regulatory bodies in states such as West Virginia and Arizona are also increasing scrutiny.
The West Virginia Attorney General has issued subpoenas to sweepstakes operators, while Arizona’s gaming regulatory agency has released public service announcements warning residents about the sites.
Despite the increasing pressure on sweepstakes operators, New Jersey is considering a regulatory approach rather than an outright ban. This would provide a framework for oversight while allowing operators to continue offering their services.
However, New Jersey appears to be an exception.
A calculated gamble
By voluntarily raising its minimum age requirement, VGW is likely making a calculated trade-off.
The decision will result in some revenue loss from the exclusion of 18-, 19-, and 20-year-old players. However, this loss may be outweighed by the benefits of improved public perception and a stronger position in ongoing legislative discussions.
One of the primary criticisms of sweepstakes gaming sites is their potential to encourage problem gambling, particularly among younger users who may be more vulnerable to gambling addiction.
Numerous peer-reviewed studies suggest that individuals between the ages of 18 and 20 are at a higher risk of developing problematic gambling behaviours.
By raising its age limit, VGW can argue that it is proactively addressing these concerns, which could make it harder for lawmakers to justify banning the platform outright.
Furthermore, this change may serve as a preemptive compliance measure. If states eventually decide to impose age restrictions on sweepstakes gaming, VGW will already be in compliance, potentially avoiding penalties or forced operational changes.
This move could also put pressure on competitors to adopt similar policies, making VGW appear as an industry leader in responsible gaming.
The Social and Promotional Games Association, which represents industry interests, has criticised legislative efforts to ban sweepstakes gaming, arguing that such actions infringe on consumer choice and innovation.
In a statement, the association condemned the Mississippi bill, characterising it as a “protectionist favour” for the traditional casino industry, rather than a genuine effort to protect consumers.