Virtual Gaming Worlds (VGW) is one of the industry leaders in the sweepstakes casino space, featuring popular brands like Chumba Casino, LuckyLand Slots, and Global Poker. As of July 2025, VGW has instituted a sales tax on Gold Coin purchases in several states. The tax rate, along with which states are affected, has not been specified by the company.
“Some states don’t have sales tax, while in other states that do, the tax rates can vary,” the spokesperson said. “Local governments may also have additional taxes. As such, the total rate paid by players following this decision is dependent on their location.”
The decision to put a sales tax on Gold Coin purchases comes in response to increased scrutiny on sweeps sites, where states like Connecticut have banned sweepstakes casinos.
The spokesperson went on to say that this is part of VGW’s commitment to integrity for players and compliance with states. After receiving cease-and-desist letters from Delaware and Maryland in recent months, VGW has looked for ways to emphasize compliance.
VGW has already moved the minimum age for sweepstakes casinos to 21 years of age. The hope is that this additional move of incorporating a sales tax will reduce the pressure put on sweepstakes operators in several states nationwide. With this sales tax, VGW can pay state governments as a way to gain favor.
Since sweepstakes casinos function under U.S. sweepstakes laws, offering casino games in a sweepstakes-style contest, this allows these platforms to be operational in states where online casinos are prohibited.
Due to this, governments are trying to ban them from setting up shop within the state. Their argument is that these casinos function under the guise of a sweepstakes contest when, in reality, they’re just a regular gambling site with slightly different features.
Sweepstakes companies like VGW counter that they offer free games without ever needing to make a purchase. The hope for VGW is that their new move to put in a sales tax will help with compliance.
Gold Coins are a virtual currency that is used to play for free at sweepstakes casinos. Players can receive Gold Coins through welcome bonuses and other promotions, but there’s also the option to make a purchase.
When a player buys a Gold Coin bundle, they also often receive free Sweeps Coins, which can be redeemed for cash prizes, a main incentive. Since players will now be taxed on Gold Coin purchases in select states, that means they’ll cost more money and thus offer less value. This could influence players to purchase Gold Coin packages at a lower rate.
