New York Attorney General Letitia James (D) announced an $8 million settlement with sweepstakes gaming operator VGW Holdings on Wednesday. The state had accused the company of operating illegal online gaming platforms in the state.
VGW is the company behind Global Poker, Chumba Casino, and Luckyland Slots. The Office of the Attorney General (OAG) previously sent a cease-and-desist letter to VGW in June 2025.
The operator later exited the market, leaving poker players in the state with limited options. The $8 million settlement includes penalties and brings legal action against VGW in the state to a close.
“Our state’s gambling laws are designed to protect New Yorkers,” James said. “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.”
The Dual-Currency Model
Like other sweeps operators, VGW uses a dual-currency gaming model. Players can use gold coins to play for free, while those who purchase additional gold coins receive sweeps coins as a bonus currency.
Players can use sweeps coins in separate games and exchange them for cash or prizes. State gaming regulators claim the platforms are simply online gambling.
Operators counter with the argument that users aren’t required to purchase anything. They favor state regulation over outright bans. VGW leaving the market followed legislators pushing for a sweepstakes ban. Legislation eventually passed in December 2025.
Company Does Not Admit Liability
VGW said it welcomes a conclusion to the legal matter in New York. The company admitted no liability as part of the agreement with state officials.
“VGW appreciates the NYAG’s recognition of VGW’s cooperation throughout its investigation and looks forward to continuing to operate its online social games in the state of New York solely through gold coins play,” the company said.
“VGW has operated in the U.S. for more than a decade, creating not only great games, user experiences, and entertainment for millions of Americans, but ensuring this is done safely, responsibly, and at the highest level of standards. We remain committed to respectful engagement on establishing modern, appropriate regulatory structures that benefit players and states alike.”
VGW had been operating in the Empire State since 2012. It has faced pushback and bans in other states as well.
Maryland regulators ordered operators to exit the market in 2025. A ban in California went into effect this year. The sweeps platform exited the Canadian market completely in May 2025.
Online gaming is illegal in New York, but some legislators have made overtures toward legalizing the industry in recent years.
