VGW Holdings, the parent company of gaming site Global Poker, has initiated its withdrawal from the Canadian market this week. Customers based in Canada were informed via email that they would no longer be able to access the sites come October 23.
Canadians will lose access to VGW's games starting on September 25. With regulatory inquests mounting, the sweepstakes style casino provider has also withdrawn from a number of its territories in the United States – New York and New Jersey among them.
In an email to customers, VGW Holdings wrote:
“We understand this is an adjustment after many years and our valued Canadian players may be disappointed. This decision wasn’t taken lightly and our focus is on ensuring players are fully informed about the changes, and that this transition is as smooth as possible.”
In further efforts to relieve regulatory burden on the company, Laurence Escalante – now VGW Holdings' sole owner – is in the process of taking the company private with his acquisition of the remaining 30% of the company in a shareholder-approved buyout earlier this month. Escalante will register the private company in Guernsey, an island in the English Channel known for its financial services industry.
A scheduled phaseout
VGW Holdings has published a schedule of the phaseout to assist customers with preparations for its exit.
On Thursday, August 28, Canadian players will no longer be able to purchase additional Gold Coins but can use existing Gold Coins or Sweeps Coins to continue playing until games cease to operate on September 25.
Players must then redeem any remaining Sweeps Coins before October 23, when access to the site will end. VGW Holdings' latest territorial withdrawal comes in the face of increasing regulatory pressure from legislative bodies in both Canada and the United States.
