Share 
VGW, the operator behind Chumba Casino, Luckyland, and Global Poker, has been fined $8 million in New York over what state officials described as unlawful online gambling.
The action adds to New York’s broader push against sweepstakes casinos, a category that has faced growing scrutiny even as the state allows legal online sports betting but not online casino gambling.
New York expands pressure on sweepstakes operators
According to the source report, the New York Attorney General’s office had already issued multiple cease-and-desist letters to sweepstakes operators in 2025. The New York State Gaming Commission also worked with the attorney general’s office and identified 26 online sweepstakes casinos that it said were operating in breach of state law.
Attorney General Letitia James said, “Online sweepstakes casinos like Chumba Casino, Global Poker, and Luckyland Slots posed a dangerous threat to New Yorkers and their financial and mental health.”
The report says New York formally banned sweepstakes casinos in December 2025. That enforcement stance stands in contrast to the state’s legal online sports betting market, which launched in 2022, while online casinos remain illegal in New York.
What the VGW case means for players
For New Yorkers, the immediate takeaway is that the state is continuing to treat casino-style sweepstakes products as an enforcement priority. VGW is described in the report as the largest sweepstakes casino operator in the US, making the $8 million penalty one of the clearest signs yet of how aggressively regulators are approaching the sector.
The source report does not specify the full settlement terms, whether VGW admitted wrongdoing, or the current New York operating status of Chumba Casino, Luckyland, and Global Poker.
It does note that VGW closed Luckyland Slots on Aug. 24 and gave customers until Monday to redeem gift cards.
Other states are also taking action
New York is not acting alone. The same report says Florida also charged VGW with “operating illegal online gambling enterprises” and filed suit against Stake.us. Florida also targeted payment processors, including Trustly, that facilitate online payments.
Maine has also moved against the model. The report says the state effectively banned sweepstakes casinos in April, with penalties of $10,000 available against operators still running after a July 14 deadline.
For New York readers, the broader pattern is clear: scrutiny of sweepstakes casinos is expanding, and enforcement is reaching operators as well as parts of the payment chain.
—
Source: As reported by thelines.com.
