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VGW will pay New York $8 million under a settlement announced by Attorney General Letitia James over allegations the company unlawfully operated online gambling platforms in the state. The case centers on VGW brands Chumba Casino, Global Poker, and Luckyland Slots, which the state said offered gambling through redeemable virtual coins.
According to the attorney general’s office, New York law bars online platforms from offering gambling when players risk something of value, including virtual coins that can be redeemed.
New York says VGW offered illegal gambling through sweepstakes-style coins
James said the settlement follows enforcement action that included cease-and-desist letters sent last year to more than two dozen sweepstakes operators. The AG’s office said it stopped VGW from offering virtual coin gambling in New York after sending the company a cease-and-desist letter in June 2025.
The state’s investigation said VGW began offering online gambling to New Yorkers through Chumba Casino in 2012, expanded with Global Poker in 2016, and added Luckyland Slots in 2018.
Investigators also alleged players could obtain sweeps coins in a way similar to buying casino chips, receiving approximately one coin for every dollar spent on the platform.
James said in a statement that New York’s gambling laws are meant to protect residents. She also said online sweepstakes casinos such as Chumba Casino, Global Poker, and Luckyland Slots posed a threat to New Yorkers’ financial and mental health.
What the settlement means for New York players
For players, the announcement is another sign that New York continues to take an aggressive approach to sweepstakes-style gambling sites that use redeemable virtual currency. The state specifically tied its case against VGW to that model.
The settlement may also be important beyond VGW. New York previously sent cease-and-desist letters to more than two dozen sweepstakes operators, and one open question is whether the state will take further action against other companies that received those notices.
For now, the key confirmed development is that New York has secured an $8 million settlement from one of the best-known operators in the sweepstakes casino space.
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Source: As reported by Dustin Gouker.
