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The Gambling Wire: VGW Pays New York $8M as Robinhood Takes Prediction Fight to SCOTUS

Our write-up of a story first reported by Gambling Insider

The Gambling Wire: VGW Pays New York $8M as Robinhood Takes Prediction Fight to SCOTUS

Sweepstakes casino operator VGW has agreed to pay $8m to the New York Attorney General to settle claims over the operation of Chumba Casino, Global Poker and LuckyLand Slots in the state. The settlement was announced on 9 September.

The investigation found that VGW had operated in New York since 2012 with Chumba Casino, later adding Global Poker in 2016 and LuckyLand Slots in 2018. The platforms used a dual-currency model with Sweeps Coins that could be redeemed for cash. The Attorney General rejected VGW's position that the coins were given away for free: the investigation showed players received roughly one Sweeps Coin for every dollar spent. VGW stopped issuing Sweeps Coins in the state on 2 June 2025 following an order from the Attorney General. The company will continue operating in New York through Gold Coins only, with no withdrawal option. The settlement text states it does not constitute an admission of liability by VGW.

Robinhood takes fight to Supreme Court

Meanwhile, the battle over prediction markets is escalating. Robinhood has filed a petition with the US Supreme Court seeking review of the Ninth Circuit's ruling on sports contracts, while Kalshi has requested en banc rehearing within the same circuit. Gaming attorney Daniel Wallach called it a 'team strategy': Kalshi fights on in the Ninth Circuit, Robinhood moves to SCOTUS. Arizona intends to lift its May ban on Kalshi's operations in the state following the Ninth Circuit decision. Underdog has filed suits against regulators in five states: Massachusetts, Ohio, Wisconsin, New Mexico and Washington.

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