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VGW has agreed to pay $8 million to settle with New York after Attorney General Letitia James said the company unlawfully operated online sweepstakes casino platforms in the state. The settlement follows VGW’s exit from New York in the summer of 2025 after receiving a cease-and-desist letter, and it comes after state lawmakers formally banned online sweepstakes casinos last December.
The company’s brands include Chumba Casino, Luckyland Slots, and Global Poker. According to the attorney general’s office, some New Yorkers lost tens of thousands of dollars on VGW’s platforms.
New York says sweepstakes sites lacked state oversight
In announcing the settlement, James said New York’s gambling laws are meant to protect consumers and accused sweepstakes casinos of creating financial and mental health risks.
Her office said sweepstakes casinos are particularly risky because they are not subject to state audits and other regulatory oversight. Without that oversight, the attorney general’s office said, players cannot verify whether games are fair, whether operators can cover winnings, or whether the sites follow the consumer protections required of legal, licensed casinos in New York.
VGW began operating in New York in 2012, according to the source report. James’ office said the company was one of more than two dozen sweepstakes operators that received cease-and-desist letters last year.
What the settlement means for New York players
For players, the case is another sign that New York is continuing to crack down on unregulated online gambling products, even after operators have left the market. VGW had already exited the state before this settlement was announced, but New York still pursued an $8 million penalty.
The source report did not specify any settlement terms beyond the payment, and it did not say whether any refunds or restitution will go to affected players.
The settlement documents were signed by acting CEO Mats Johnson. VGW founder Laurence Escalante had taken a leave of absence after his January arrest and later resigned as CEO in July.
What to watch next
One open question is whether other sweepstakes operators that received cease-and-desist letters from New York will face similar settlements. Readers should also watch for any further enforcement details from the attorney general’s office tied to the state’s broader ban on online sweepstakes casinos.
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Source: As reported by Eric Raskin.
