Sweepstakes Casino Operator VGW Reaches $8M New York Settlement

_{New York Attorney General Letitia James got VGW Holdings to agree to an $8 million settlement for illegal and unlicensed gambling. (Photo: Ben Von Klemperer / Alamy)}

VGW Holdings, the operator of popular sweepstakes casinos such as Chumba Casino, Global Poker, and Luckyland Slots, has agreed to an $8 million settlement with New York Attorney General Letitia James over accusations that it offered illegal and unlicensed gambling in the state.

The settlement comes more than a year after VGW ceased operations in the state, pulling its sites out of the market in June 2025.

James: Sweepstakes Casinos Pose ‘Dangerous Threat’

According to a statement from James, the $8 million settlement includes disgorgement, penalties, and costs associated with the case.

“Our state’s gambling laws are designed to protect New Yorkers,” James said in the statement. “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.”

Like most sweepstakes casinos, VGW’s sites utilized a dual currency system in an attempt to operate under sweepstakes regulations rather than gambling laws. Typically, players can buy gold coins, which are not redeemable for money or prizes. Meanwhile, sweeps coins – which can be redeemed – are only available via free promotions or as a bonus for a purchase of gold coins.

Because sweeps coins are available for free and can’t be directly purchased, operators say they are conforming to sweepstakes laws. However, critics have pointed out that since the “bonus” sweeps coins are nearly equal to the purchase price of gold coins, customers know they are purchasing credits for real money gambling. In surveys, most users have also said that they consider sweepstakes sites to be gambling. 

States Crack Down on Unlicensed Gambling

That has led many states to update their gaming laws to explicitly make sweepstakes casinos illegal in an effort to end any ambiguity about their status. New York Gov. Kathy Hochul signed such a bill into law for her state in December 2025. 

VGW had operated in New York since 2012, when Chumba Casino was launched in the state. Global Poker followed in 2016, with Luckyland Slots coming to the state in 2018.

This is not the only action that James has taken against gaming providers that operate outside of New York’s gambling regulations, and the attorney general has targeted far more than sweepstakes casinos.

In April 2026, James launched lawsuits against Coinbase and Gemini for allegedly running illegal gambling platforms, and added prediction market Kalshi to that list in July of this year. She’s also gone after video game developer Valve, suing the company in 2026 for allegedly promoting gambling in its video games, including those marketed to children and teenagers.

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