Sweepstakes casino operator VGW Holdings will pay New York Attorney General $8m for running illegal gambling platforms in the state. The company operated Chumba Casino, Global Poker and Luckyland Slots, where users played slots, blackjack and poker for virtual coins exchangeable for cash or prizes such as Amazon gift cards.
New York law prohibits online gambling using any item of value, including virtual currency with redemption options. VGW launched in the state in 2012 through Chumba Casino, later adding Global Poker in 2016 and Luckyland Slots in 2018. The company claimed it gave away "sweeps coins" for free, so the activity did not constitute gambling. The AG's investigation found players received roughly one coin per dollar spent—the same as buying chips at a brick-and-mortar casino.
In June 2025 the AG issued a cease-and-desist order and VGW stopped selling virtual coins in New York. Some state residents lost tens of thousands of dollars on VGW platforms. Sweepstakes casinos do not undergo state audits and fall outside regulatory oversight, so players cannot verify game fairness or confirm the operator will pay out winnings.
In December 2025 the New York governor signed a law officially banning sweepstakes casinos. Attorney General Letitia James has filed suits against other operators including Kalshi in July 2026, Coinbase and Gemini in April 2026, and game developer Valve in January 2026. The VGW settlement covers disgorgement of illegal proceeds, penalties and legal costs.
