Chumba, Lucky Land Sweepstakes Casinos, Global Poker Exit Delaware

Three of the most prominent sweepstakes casinos have announced they will voluntarily be leaving the state of Delaware.

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This comes after that state's Division of Gaming Enforcement claim that VGW Luckyland, Inc. and its sites Luckyland, Chumba Casino and Global Poker have operated "illegal".

The DGE issued the following statement last week:

"An investigation by the Delaware Division of Gaming Enforcement (DGE) into VGW Luckyland, Inc. – a subsidiary of the Australian-based VGW Holdings Ltd. – revealed that VGW Luckyland, Inc. was operating illegal online gaming.

"Delaware officials concluded the VGW misrepresented its services as promotional sweepstakes while enabling individuals to purchase coins for casino-style games, leading to potential cash winnings."

Regulators cite violation of the Delaware Constitution, the Delaware Penal Code and the Delaware Competitiveness Act of 2012.

"In addition to compromising consumer protection, illegal sites result in significant tax revenue losses for the state. Websites claiming to offer legal games of chance should be viewed with suspicion. It is important to remember that just because you can download an app, visit the website, and play the games, it does not mean it is a legitimate and legal gaming platform. Delaware residents are urged to exercise caution and only engage with online gaming platforms at authorized Delaware Casinos."

VGW issued this response in a news release Friday:

“In relation to a statement issued by the Delaware Department of Gaming Enforcement (DGE) on April 7, 2025, VGW stands by its online, casino-themed, free-to-play social games and sweepstakes promotions and continues to believe they comply with Delaware law, as well as the laws of all other jurisdictions in which those games continue to be offered.

“VGW is deeply disappointed at the statement issued and disagrees with its assertions. VGW is committed to working with state legislators to establish modern regulatory structures that safeguard players and provide benefits to state revenue through appropriate taxation frameworks. Similarly, we are also committed to respectful engagement with state authorities or agencies.

“In this situation, at the urging of the Delaware Lottery, DGE demanded that VGW cease operating despite the DGE’s own communications acknowledging that VGW’s activities had caused no harm to Delaware residents. VGW attempted to engage with DGE to understand its concerns, repeatedly requesting the opportunity to discuss these issues with the agency, but were rebuffed. As such, VGW elected to voluntarily withdraw its services from Delaware earlier this month, despite disagreeing with the DGE’s position.”

The Delaware situation highlights the importance of understanding local gambling laws when operating across state borders. For players seeking alternatives following these exits, many turn to trustworthy online casinos operating from abroad that hold proper international licenses and maintain transparent operations. These offshore platforms typically operate under jurisdictions like Malta, Curacao, or Gibraltar, which have established regulatory frameworks for online gaming. Unlike the sweepstakes model that faced scrutiny in Delaware, licensed international casinos clearly distinguish between real money wagering and promotional games. Players considering such options should verify licensing credentials, check for third party audits, and confirm which payment methods are supported for their region. While these platforms may not be available to all US residents due to varying state laws, they provide legal alternatives for players in jurisdictions where online gambling is permitted or where no specific laws prohibit access to international sites.

Delaware becomes the eighth state to halt VGW operations, joining Connecticut, Idaho, Maryland, Michigan, Montana, Nevada, and Washington.

Last week, Gambling911.com delve deep into where sweepstakes casinos have been or are otherwise likely to potentially be in violation of state laws.