New York Attorney General Letitia James has secured an $8 million settlement with VGW Holdings Pty. Ltd. and its affiliates after an investigation into the company’s sweepstakes casino operations in the state.
The settlement covers Chumba Casino, Global Poker and Luckyland Slots, which allowed customers to play casino-style games with virtual sweepstakes coins that could be redeemed for cash or prizes. New York law prohibits online gambling involving something of value, including virtual coins that can be exchanged for rewards.
“Our state’s gambling laws are designed to protect New Yorkers,” said Attorney General James. “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.”
Investigation Challenged VGW’s Virtual Coin Model
VGW entered New York’s online gambling market in 2012 through Chumba Casino. Global Poker followed in 2016, while Luckyland Slots launched in 2018.
The company used “sweeps coins” on its platforms and maintained that the coins were provided for free, meaning their use did not amount to gambling. The Attorney General’s investigation reached a different conclusion.
Investigators found that players could acquire the coins in a manner comparable to buying casino chips, receiving approximately one coin for every dollar spent on the platforms.
The Office of the Attorney General sent VGW a cease-and-desist letter in June 2025. Following that action, the company stopped offering the sale of sweepstakes coins to New York customers. Governor Kathy Hochul subsequently signed legislation formally banning sweepstakes casinos in the state in December 2025.
Settlement Follows Concerns Over Player Protection
The Attorney General’s office also highlighted the risks associated with unlicensed sweepstakes gambling. Such operators do not face the same audits and regulatory requirements as licensed casinos in New York.
The office said this leaves players without assurances concerning game integrity, the ability of an operator to pay winnings or compliance with consumer protection rules. Some New York residents were reported to have lost tens of thousands of dollars while gambling through VGW’s platforms.
Under the settlement, VGW will pay $8 million in disgorgement, penalties and costs.
The action forms part of a broader campaign by James against gambling activity that her office considers unlawful in New York. In 2026, she also sued Kalshi over an alleged illegal gambling operation and brought cases against Coinbase and Gemini concerning gambling platforms. Earlier in the year, her office sued video game developer Valve over alleged promotion of gambling through games popular with children and teenagers.
James has encouraged New Yorkers to report unlicensed gambling platforms, misconduct and gaming fraud to the New York State Gaming Commission. Complaints can also be submitted anonymously to the Attorney General’s office online or by calling 1-800-771-7755.
Source:
“Attorney General James Secures $8 Million from Leading Operator of Illegal Online Sweepstakes Casinos”, ag.ny.gov, September 9, 2026
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