Dominoes have fallen: after the United States, Chumba Casino and Global Poker stop working in Canada

Virtual Gaming Worlds (VGW), one of the leaders in the social casino niche, has announced its decision to leave the Canadian market. This event was another link in a long chain of the company's retreat from regions with an uncertain legal status. Canadian players of the popular platforms "Chumba Casino" and "Global Poker" will lose access to games from September 25.

Folding process

The company has provided a clear timetable for exiting the market. From August 28, players will not be able to make purchases of in-game currency. Full access to the platforms will be closed on September 25, however, users will have until October 23 to withdraw their winnings and exchange the remaining "Sweeps Coins" for real prizes.

This step did not come as a bolt from the blue. Rather, it is an expected continuation of the company's strategy to reduce risks. Over the past year, VGW has ceased operations in more than a dozen U.S. states, including key markets such as New York, New Jersey, Michigan and Nevada. Leaving Canada only confirms that the era of working in the "gray" legal zone for sweepstakes casinos is coming to an end.

Reformatting business under pressure from regulators

Against the backdrop of a mass exodus from the markets, the internal transformation of VGW itself is also taking place. In early August, the company's majority shareholder, Lawrence Escalante, who already owned 70% of the shares, received approval to buy out the remaining 30%. The move transforms VGW from a public to a private company.

By going private, the company is free from the need to report to public shareholders and can more flexibly and covertly rebuild its business model in the face of increasing pressure from regulators around the world. VGW seems to be preparing for a new reality, where there is less and less room to work "bypassing" gambling laws.