New York Attorney General Letitia James has secured $8 million from VGW Holdings Pty. Ltd. and its affiliates over the illegal operation of online gambling platforms in the state. The settlement covers Chumba Casino, Global Poker and Luckyland Slots, which let players use virtual coins that could be redeemed for cash or prizes.
New York law bans online gambling involving anything of value, redeemable sweeps coins included. The attorney general's office ordered VGW to stop operating in the state in June 2025, and the company closed its New York operations. The $8 million covers illegally obtained profit, penalties and costs. Players still holding coins when operations stopped could redeem balances at the rate in effect on the closing date.
Penal code and fraud claims
VGW violated sections 225.10 and 225.20 of the New York penal code, which cover promoting gambling and possession of gambling records, and the state's fraud law. James said sweepstakes casinos threatened the financial and mental health of New York residents.
Chumba Casino had run in the state since 2012, Global Poker since 2016 and Luckyland Slots since 2018. The model rested on sweeps coins that VGW called free. The investigation found that acquiring coins amounted to buying chips, at about one coin per dollar. Sweepstakes casinos skip the audits and regulatory oversight required of licensed operators. Some New York residents lost tens of thousands of dollars on VGW platforms.
Sweeps ban and other cases
In December 2025 Governor Kathy Hochul signed a law formally banning sweepstakes casinos in the state. James has also filed suits against Kalshi (July 2026), Coinbase and Gemini (April 2026) and Valve (January 2026) over alleged illegal gambling.
