VGW to Pay New York AG $8 Million for Illegal Sweepstakes Casino

New York’s attorney general procured $8 million for the state after settling with a major sweepstakes casino technology company.

Letitia James secured the payment from VGW Holdings Pty. Ltd. and its affiliates after they were found to have illegally operated gambling platforms inside state lines. Popular VGW-powered platforms included Chumba Casino, Global Poker and Luckyland Slots, all of which used a dual-currency model to support unlicensed online gaming.

New York law does not allow this type of model, which is quickly inspiring pushback nationwide.

VGW will pay sweepstakes charge in New York

James’ office sent VGW a cease-and-desist order in June 2025, stating that the company needed to cease operations immediately. New York Gov. Kathy Hochul (D) later signed a bill in December that completely outlawed sweepstakes platforms.

VGW complied with the order and stopped offering sweepstakes-based casino games, which utilize Sweeps and Gold coins as native currency instead of real cash. However, the company will still have to pay $8 million in disgorgement, penalties, and costs.

According to James, VGW broke New York Penal Law Sections 225.10 and 225.20 and the Executive Law Section 63(12). These rules prevent promoting gambling, possessing gambling records, and repeated fraudulent or unlawful practices.

“Online sweepstakes casinos like Chumba Casino, Global Poker, and Luckyland Slots posed a dangerous threat to New Yorkers and their financial and mental health,” said James. “My office took action to stop these illegal platforms last year, and now we are holding VGW accountable for the damage done.”

Consumers who were not previously notified of the shutdown by VGW may request to cash out any sweepstakes coins that were in their accounts when the company backed out of New York. Withdrawals will be paid according to the provided exchange rates.

New York on the front foot

Chumba Casino was the first VGW platform to launch in New York in 2012. Global Poker followed in 2016, and eventually, LuckyLand Slots set up shop in 2018.

VGW’s stance mirrored that of other sweepstakes platforms, affiliates, and providers — it argued that sweepstakes casinos didn’t offer real gambling services since native coins weren’t the same as cash. 

James’ office investigated and ultimately disagreed with the claim, finding that the coins were awarded at a rate of one sweeps coin per dollar deposited. 

VGW was only one of 26 companies to receive a cease-and-desist order in New York in June 2025. VGW also previously said it would permanently close LuckyLand Slots in North America on Sept. 14, although that couldn’t save it from the $8 million sum. 

James’ office is far from done with its attempt to enforce gambling regulations. In January; it filed a lawsuit against game developer Valve for allegedly promoting gambling through video games; in April, it named Coinbase and Gemini in lawsuits due to ties to prediction markets; and in July, it targeted prediction leader Kalshi. 

Although the case against Kalshi is still pending, U.S. District Judge Analisa Torres already denied the company’s request for a preliminary injunction that would’ve prohibited the state from enforcing gaming regulations.