AFR report that Escalante rebuffed his critics in an expletive-laden post on Telegram, insisting they “sell their stakes” if they didn’t trust his leadership.

VGW operates several popular sweepstakes platforms, including Chumba Casino, LuckyLand Slots, and Global Poker. It is best known for having secured a foothold in the lucrative US and Australian markets.

Operational in several US states, the free-to-play platforms currently skirt perceived iGaming laws by allowing users to purchase in-game currency to enter sweepstakes to win real-money prizes.

Notably, despite the growing regulatory scrutiny, which has seen other sweepstake operators like Stake go to court, the sweepstake model remains popular with millions of users.

VGW CEO Defends Secrecy Citing Corporations Act Compliance

Beyond the acceptance of product offerings among its user base, investor dissent has been fueled by VGW’s recent questionable business practices. At the forefront appears to be its shift from a biannual reporting schedule to an annual reporting format.

In addition, the lack of a unified investor hub has begun to make shareholders uneasy, with analysts saying it prevents genuine insight into the company’s finances and operations.

Arguing that cynics lack a proper understanding of the operational complexities involved, Escalante chooses to escalate tensions further by publicly calling out financial commentator Ricky Saini, telling him to “shut the f*** up.”

Escalante later stated that it was impossible to fully disclose some aspects of the business’s operation, declaring that it was necessary to comply with its legal obligations under the Corporations Act.

Regulatory Pressure Mounting on Both Sides of the Pacific

However, VGW’s issues extend beyond its problematic investor relations. As with Stake and others, the company is facing growing regulatory pressures in the US and Australia related to the sweepstakes operational model.

Perhaps VGW’s most likely imminent threat comes from the regulatory opposition it faces in the US.

The pressure stems from state-level regulators, tribal casinos, and licensed operators’ opposition to sweepstakes gaming models exploiting the supposed legal gray area. They claim platforms operated by VGW can do so without the same degree of regulatory oversight as licensed gambling operators require.

Consequently, following cease-and-desist orders, VGW has already had to withdraw from US state markets in Connecticut, Idaho, Michigan, Montana, Nevada, and Washington.

Meanwhile, the Australian Taxation Office is also applying pressure on Escalante, having just launched a review of VGW’s domestic Australian operations. Of the concerns the Australian Taxation Office raised, the company’s tax compliance is at the forefront of their interest in VGW.

Profitability Despite Growing Regulatory Pressure

Despite the growing regulatory obstacles and tax investigations, VGW consistently posts profits due to the firm’s gaming portfolio remaining hugely popular among online players in both countries.

For some investors, Escalante’s defiant tone will appeal to investors as it mirrors that of the Kalshi CEO, who recently scored a victory over the US Commodity Futures Trading Commission (CFTC). However, Escalante’s no-holes-barred approach alienates some VGW shareholders demanding greater board-level accountability.

The post VGW CEO Escalante Under Fire After Profanity-Laced Tirade at Investors appeared first on CasinoBeats.

The group claimed in a statement last week that the amendment of SB 5935 “needlessly threatens” the state’s economy and is nothing more than a “political patch meant to quiet critics without solving the underlying problem.”

Proposed by Sen. Joseph Addabbo, the bill would prohibit any online contest or promotion that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalent.”

New Powers for New York Gaming Commission Raise SPGA Fears

Upon the bill’s introduction in March, the SPGA contended that broadly banning sweepstakes games could threaten promotional programs run by major brands such as Marriott, McDonald’s, and Starbucks. The amendment gives the New York State Gaming Commission (NYSGC) the authority to decide what constitutes a “dual-currency system” under the law.

Entities found violating the bill face fines ranging from $10,000 to $100,000 and loss of licensing.

Sweepstakes gaming allows users to play casino-style games without wagering real money. Instead, they use virtual currencies like coins or tokens that can be exchanged for prizes or additional credits.

Because they do not take real-money wagers, these platforms are not classified as traditional gaming sites and have drawn scrutiny from regulators.

The SPGA argues that the amendment is a “clear acknowledgement that this anti-business bill needlessly threatens New York’s economy” and the result of “bad legislation.”

Its companion bill, Assembly Bill 6745, unanimously passed through New York’s Assembly Racing and Wagering Committee last week during a public hearing. Proposed by Committee Chair Carrie Woerner, it defines online sweepstakes games as any contest or promotion that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalents.”

National Spotlight on Sweepstakes Regulation

Sweepstakes gaming is under the watch of regulators in several states. Connecticut and Louisiana are seeking similar bans, while a proposal in Maryland failed to advance before the end of the legislative session last month.   

The Louisiana measure would target operators and promoters of casino-style games (slots, video poker, blackjack, roulette), lottery games (keno and poker), sports betting, geolocation providers, and gaming manufacturers.

The SPGA warned Louisiana lawmakers sternly, saying they should “take note before making the same mistake” as their companions in New York.

“This was already bad legislation,” the SPGA said. “Lawmakers have taken a mess and made it into a catastrophe.” 

The post SPGA Slams New York Bill Amendment as ‘Anti-Business’ Legislation appeared first on CasinoBeats.

On April 7, the Pennsylvania Gaming Control Board (PGCB) told attendees at a Gaming Oversight Committee that none of the operators have permits to operate in Pennsylvania.

It noted that most of the operators are based overseas. However, a few are US-headquartered, with some operating out of offices in Pennsylvania.

The media outlet Play Pennsylvania reported that “all 18 recipients have complied with the order so far.”

Pennsylvania Regulator Closing in on Sweepstakes Operators

The PGCB Chief Enforcement Counsel Cyrus Pitre told the hearing that new sweepstakes brands continue to appear in PA, obliging the regulator to play a game of “whack-a-mole.”

As sweepstakes casino operators make use of virtual currencies, regulators like PGCB do not have the authority to launch legal action against them under federal laws.

As such, regulators across the US have resorted to sending sweepstakes operators warning-type cease-and-desist letters.

Steve Cook, the PGCB Chief Counsel, said that the body needed new legal amendments to help close loopholes.

This would help the Pennsylvania regulator stave off the rise of unregulated operators, Cook explained. He said: “Unfortunately, in the area of interactive gaming, we are significantly hamstrung by the specific language of our enabling statute. Specifically, Chapter 13B of the Gaming Act includes sections that appear to ban online gaming by unlicensed operators. These prohibitions ultimately come into conflict, however, with the definitions found in the act.”

Cook noted that a Commonwealth Court ruling on skill games from December 2023 has limited the number of tools the PGCB has at its disposal.

Cook claimed that the language used in the ruling serves to “make clear that the Gaming Board only has control and authority over people licensed by it, not outside entities doing something that is arguably illegal.”

Regulator: Sweepstakes Casinos ‘Pose Threat to Legal Sector’

The PGCB said there was now a “stark contrast” between sweepstakes casinos and regulated online operators.

It noted that the law does not require sweepstakes platforms to prove their “fairness to the patron.” It also claimed that sweepstakes sites have no obligation to provide responsible gaming services or age verification checks.

Pitre claimed that the rise of sweepstake operators now poses “a threat” to the legal industry in Pennsylvania.

He claimed that the regulator remains committed “to maintaining the integrity of Pennsylvania’s legal gaming industry.”

Pitre explained that sweepstakes casinos, “despite their misleading presentation,” were in the PGCB’s “assessment,” a form of “illegal online gambling.”

The online casino segment grew rapidly in PA last year. According to official documents released in January 2025, Pennsylvania reported figures of around $2.2 billion in 2024.

The post Pennsylvania Regulator Sends Cease-and-Desist Letters to 18 Sweepstakes Operators appeared first on CasinoBeats.

Republican Senator Adam Bass has introduced Senate Bill 181, which is aimed at banning certain social casino games by classifying them as illegal gambling.

The proposed Louisiana legislation defines illegal sweepstakes gaming as: “any games, contest, or promotion that is available on the internet or accessible on a mobile phone, computer terminal, or similar access device that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents … and simulates any form of gambling.”

This includes casino-style gaming (slot machines, video poker, table games such as blackjack and roulette), lottery games (keno and poker), and sports betting.

It targets not only operators and promoters of these games but also geolocation providers and gaming manufacturers. The bill calls for harsh penalties, ranging from fines between $10,000 and $100,000 to prison sentences of up to five years.

Sweepstakes Gambling Focus in Several States

Close to a dozen states have already filed bills to ban sweepstakes gambling. For instance, New York’s Senate Racing, Gaming, and Wagering Committee unanimously passed SB 5935 last month. The bill, introduced by Sen. Joseph Addabbo, specifically targets games simulating casino-style entertainment, including poker, slots, and sports betting.

“These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject,” the bill reads. “These products and operations are untaxed and unregulated.

“They present unfair competition to the state’s legal, highly regulated and economically important casinos.”

Following mounting pressure in the Empire State, several sweepstakes operators, including Hello Millions, SportsMillions, PlayFame, SpinBlitz, and Rolling Riches, have announced they will cease business in New York in April. Further, High 5 Casino stopped accepting new registrations and transactions late last month. 

Sen Addabbo has long been a proponent of legalized iGaming in the state, but significant roadblocks remain in the form of the vocal brick-and-mortar casino lobby and public health advocates. He has previously argued that legalizing online casinos would help reduce the risk of residents using unregulated products such as sweepstakes casinos and offshore sites. 

Maryland is weighing similar measures after unanimously passing legislation in the state Senate.

Connecticut, Florida, Mississippi, and New Jersey lawmakers have also filed bills seeking to tighten regulations against sweepstakes gambling.

Opponents Call Proposal ‘Misguided’

SB 181 has drawn fierce opposition from the Social and Promotional Games Association (SPGA), which said that it “recklessly misclassifies” sweepstakes gambling as illegal. 

The SPGA has expressed concerns that SB181’s “overly broad definitions” could criminalize customer engagement strategies from Marriott, United, Delta, and Hilton. It argues that “the vast majority of users never spend a dime” and dubs the Louisiana bill “economically and culturally tone-deaf.” 

The strongly worded statement concludes: “SPGA calls on Lousiana lawmakers to reject SB181 before it inflicts lasting damage on the state’s economy and reputation as a hub for innovation.” 

The post Sweepstakes Gambling Crackdown Reaches Louisiana With SB 181 Proposal appeared first on CasinoBeats.