Social Casinos Exit Michigan Online Gaming Market Amid Blowback

Article by : Erik Gibbs Oct 31, 2023

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Michigan boasts one of the most comprehensive regulated gambling landscapes in the United States, with social and sweepstakes casinos becoming less prominent.

One of the leading operators of social online gaming in the US has announced its decision to cease accepting players from Michigan, shedding light on the challenges facing this form of gambling as legal real-money online casinos continue to expand.

Social casinos have gained popularity in US states where legal real-money online casinos have yet to establish a presence, offering digital versions of slots and table games, similar to their real-money counterparts.

The primary distinction lies in the fact that social casinos use their proprietary digital currencies rather than actual US dollars for gameplay, with players utilizing this “monopoly money” to compete for real prizes.

Notably, on platforms like Chumba Casino, players can exchange Sweeps Coins for tangible cash deposited into designated accounts, a feature central to Virtual Gaming Worlds (VGW) discontinuing its operations in Michigan.

VGW, a leading social gaming brand in the US, has opted to withdraw from the Michigan market, citing regulatory issues as the cause.

The decision encompasses its popular sites, including Chumba Casino, Global Poker, and Luckyland Slots, marking Michigan as one of the few states where players won’t have access to these platforms.

The move comes shortly after Michigan Attorney General Dana Nessel directed Golden Hearts Games, another social casino, to cease operations in the state, prompting VGW to potentially pre-empt a similar order from Nessel regarding its products.

VGW has offered players in Michigan a transition period, with the ability to use existing balances on the site for gameplay until December 1.

There’s also an opportunity to redeem available prizes on the platforms until February 1, 2024, after which any outstanding prizes will be forfeited. As of November 1, players in Michigan will no longer be able to purchase digital currencies to fund their gameplay.

While VGW has not indicated plans to exit other states with regulated real-money online casinos, the future of platforms like Chumba Casino remains uncertain as more US markets introduce regulated online casinos, which could lead to similar outcomes.

Despite the challenges, social casinos still provide a viable option for many US residents at present.