Sweeps-Based Poker Site Global Poker to Cease Operations in Nevada

Guard Dog Dec 19, 2024
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Global Poker, a leading sweepstakes-based online poker platform, has revealed plans to end its operations in Nevada by April 15, 2025. The withdrawal will occur in three phases, gradually limiting services for Nevadan players. This move marks the latest in a series of state exits for Global Poker and its parent company, Virtual Gaming Worlds (VGW), amid growing regulatory challenges across the United States.

Phased Exit Timeline

Nevada-based customers were informed via email and text messages about the phased withdrawal:

  • January 15, 2025: Players in Nevada will no longer be able to purchase Gold Coin packages, which include bonus Sweeps Coins. Existing balances will remain accessible for gameplay.
  • February 15, 2025: Gameplay for Nevada residents will cease entirely. Players will still be able to redeem Sweeps Coins for prizes, including cash.
  • April 15, 2025: All account access and redemption requests will be discontinued for Nevadan players. Remaining balances may be forfeited, though this remains unclear.

Global Poker stated, “We understand that this news may be disappointing and want to assure you this decision was not made lightly, but made as part of our continual evaluation of our operations in the interests of all our stakeholders.”

Regulatory and Legal Challenges

Nevada will become the sixth U.S. state where Global Poker is unavailable, joining Idaho, Michigan, Montana, Washington, and Connecticut. VGW, the Perth-based parent company, has faced mounting scrutiny from regulators. Earlier this year, Delaware’s Division of Gaming Enforcement issued a cease-and-desist order against VGW’s sweepstakes offerings. Similar actions in Michigan and Connecticut also led to exits from those markets.

VGW’s use of the sweepstakes model, which employs virtual currencies such as Gold Coins and Sweeps Coins, has drawn criticism. While Sweeps Coins can be redeemed for cash, critics argue that these platforms effectively operate as unlicensed online casinos. Despite VGW’s legal defenses, including motions to dismiss class-action lawsuits in states like Georgia, the company remains embroiled in legal and regulatory disputes.

Limited Options for Nevada Players

Global Poker’s exit will leave Nevada players with few alternatives for online poker. The state currently offers WSOP NV, a regulated platform that shares player pools with New Jersey and Michigan. Other options include subscription-based services like ClubWPT, ClubWPT Gold, and ClubGG.

The withdrawal shows the challenges sweepstakes-based platforms face in regulated markets. Although Nevada allows traditional online poker through licensed operators, sweepstakes poker platforms operate under a different legal framework, relying on sweepstakes laws rather than gambling licenses.

Parent Company’s Future

VGW remains the largest sweepstakes casino operator globally, managing other brands such as Chumba Casino and Luckyland Slots. However, its market share has declined from 90% in 2020 to roughly 50% today. Despite generating over $4 billion in revenue in the last fiscal year, VGW faces growing competition and legal hurdles.

Global Poker acknowledged the loyalty of its Nevadan community, stating, “Your ongoing support and loyalty to our community is greatly appreciated, and we would like to take this opportunity to thank you for being an integral part of our journey.”

While the phased exit addresses Nevada, VGW continues to navigate broader regulatory challenges, leaving the future of its sweepstakes model uncertain.

Source: Global Poker Announces Phased Exit from Nevada by April 2025, Real Money Action, December 18, 2024.