VGW agrees to $8m New York settlement over sweepstakes casino operations
Attorney General Letitia James resolves claims against the operator of Chumba Casino, Global Poker and Luckyland Slots without an admission of liability
US.- VGW Holdings Pty. Ltd. and affiliates have agreed to pay New York $8m to resolve allegations that the company unlawfully operated online sweepstakes casinos in the state. This agreement covers VGW’s Chumba Casino, Global Poker, and Luckyland Slots platforms.
New York law prohibits online platforms from offering gambling that involves risking something of value, including redeemable virtual coins. The Office of the Attorney General said its investigation found players could obtain sweeps coins by purchasing packages of virtual currency, receiving about one coin for every dollar spent.
Attorney General Letitia James: “Our state’s gambling laws are designed to protect New Yorkers. 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.”
The $8m payment comprises disgorgement, penalties and costs. The settlement is structured as an Assurance of Discontinuance and does not include an admission of liability by VGW. James’s office said it will refrain from prosecuting the company for conduct before it stopped sweeps-coin operations in New York, but can pursue enforcement if VGW breaches the agreement.
VGW must enable eligible New York customers to redeem any remaining sweeps coins in their accounts as of June 2, 2025. Under the terms of the agreement, customers had until August 31, 2026, to file a valid redemption request.
VGW, which is based in Australia, began offering Chumba Casino to New York players in 2012, followed by Global Poker in 2016 and Luckyland Slots in 2018. James’s office said some New York residents lost tens of thousands of dollars on the platforms.
VGW said: “VGW welcomes the conclusion of this matter. As communicated to our New York players in May 2025, and detailed in the Assurance, VGW voluntarily ceased allowing players to collect Sweeps Coins through any method on 2 June, 2025, as part of a phase-out of Promotional Play (Sweeps Coins) in the State and in anticipation of new legislation relating to sweepstakes that took effect later that year.”
In 2025, the Office of the Attorney General issued a cease-and-desist letter to VGW as part of an initiative targeting 26 online sweepstakes casinos. In December 2025, Governor Kathy Hochul enacted legislation that prohibited online sweepstakes casinos in New York.
