New York agrees $8 million settlement with VGW

New York Attorney General Letitia James today secured $8 million from VGW Holdings Pty. Ltd. and its affiliates (VGW), one of the largest operators of so-called “sweepstakes casinos,” for unlawfully running online gambling platforms in New York.

VGW’s online casinos Chumba Casino, Global Poker, and Luckyland Slots allowed users to play traditional casino games using virtual coins that could be exchanged for cash or prizes. New York law prohibits online platforms from offering gambling that involves risking something of value, including redeemable virtual coins. In June 2025, the Office of the Attorney General (OAG) sent a cease and desist letter to VGW, successfully stopping the company from offering virtual coin gambling in New York. Under the settlement announced today, VGW will pay $8 million, including penalties.

“Our state’s gambling laws are designed to protect New Yorkers,” said Attorney General James. “Online sweepstakes casinos like Chumba Casino, Global Poker, and Luckyland Slots posed a dangerous threat to New Yorkers and their financial and mental health. My office took action to stop these illegal platforms last year, and now we are holding VGW accountable for the damage done.”

Sweepstakes casinos allow users to play traditional casino games, including slots, blackjack, and poker, using virtual sweepstakes coins that can be redeemed for cash or prizes, such as Amazon gift cards. Players typically purchase these virtual sweepstakes coins as part of a package with other virtual currency.

VGW began offering online gambling to New Yorkers in 2012 through Chumba Casino and expanded its online offerings with Global Poker in 2016 and Luckyland Slots in 2018. In an attempt to evade New York’s ban on sweepstakes casinos, all VGW platforms offered a type of virtual coin called “sweeps coins,” which VGW claimed were provided for free and therefore did not constitute gambling. An OAG investigation into VGW’s platforms found that, in reality, players could obtain “sweeps coins” the same way one might purchase chips in a casino, receiving approximately one coin for every dollar spent on the platform.

Gambling on online sweepstakes casinos is especially risky because sweepstakes casinos are not subject to audits and other regulatory oversight by the state. Without oversight, players have no way of knowing whether a sweepstakes casino’s games are rigged, whether it will be able to cover a winning bet, or whether it complies with the many other consumer protection measures required of legal, licensed casinos under New York law. Some New Yorkers lost tens of thousands of dollars through gambling on VGW’s platforms.

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