Kris Johnson iGaming Journalist
Kris Johnson is a Charlotte-based deputy editor. He joined CasinoBeats in July 2025 and oversees the daily news flow of editing and publishing. Kris also reports on all aspects of the gambling industry with a...
Read Full BioSweepstakes casino Chumba stole the spotlight at the very end of yesterday’s Daytona 500, with Tyler Reddick escaping a multi-car wreck to capture the checkered flag in 23XI Racing’s No. 45 Toyota.
Reddick didn’t lead a lap until the white flag waved. The Daytona 500 victory marked the second crown jewel win for Chumba Casino after fellow 23XI driver Bubba Wallace won the Brickyard 400 at Indianapolis Motor Speedway last year.
Former Daytona 500 winner Michael McDowell featured Modo Casino on his Spire Motorsports No. 71 Chevrolet at Daytona. McDowell finished 22nd.
Will Sweepstakes Casinos Survive in US?
Notably, Reddick’s Daytona 500 win came a week after Florida lawmakers voted in favor of a wide-reaching anti-gambling bill that targets unregulated wagering in the state, including sweepstakes casinos.
Six states enacted statutory bans on sweepstakes casinos in 2025.
- California
- New York
- Montana
- Connecticut
- New Jersey
- Nevada
While stopping short of an outright ban, Nevada reserves the power to prosecute unregulated operators. This has led most of them to exit the state. The most recent six states joined Idaho, Washington, and Michigan, all of which effectively outlawed sweepstakes casinos previously.
With the count now at nine states, several others are working to shut down sweepstakes casinos. Those include:
Sweepstakes casinos operate on a dual-currency model that allows users to play for fun (gold coins) or redeem for cash prizes (sweeps coins). State lawmakers and gaming regulators across the country argue that sweepstakes casinos represent illegal gambling.
Chumba Owner Arrested on Multiple Charges
Laurence Escalante is the founder and CEO of Virtual Gaming Worlds (VGW), which is the parent company of Chumba Casino.
Police arrested Escalante in late January after he allegedly assaulted his ex-girlfriend at her home in Perth. Escalante, who faces eight assault, theft, and drug charges, was subsequently removed from his position at VGW.
The company released a statement, saying, “We are aware of the serious charges made against Mr Escalante. These are unrelated to VGW and personal in nature. However, we can confirm Mr Escalante will be taking a leave of absence from his role as CEO and Executive Chairman of VGW. In the interim, we have installed experienced leadership from our existing executive team to take on those responsibilities and it remains business as usual for VGW.
“The company takes any allegations of this nature extremely seriously. As this is a private matter and remains before the courts, we cannot comment further.”
