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- New York secured an $8 million settlement with VGW Holdings over allegations that it operated illegal online sweepstakes casinos.
- VGW admitted no liability and will limit its future New York operations exclusively to social “gold coin” play.
New York Attorney General Letitia James announced an $8 million settlement with VGW Holdings over allegations that the company operated illegal online sweepstakes gaming platforms in the state.
The case matters because VGW is the parent company of Global Poker, Chumba Casino, and Luckyland Slots, three of the best-known brands in the sweepstakes gaming space. The settlement is another sign of mounting state scrutiny of dual-currency sweepstakes models, even as VGW said the agreement resolves the matter without any admission of liability.
Settlement closes New York action against VGW
According to the attorney general’s office, New York had accused VGW of offering illegal online gaming in the state. The office had previously sent the company a cease-and-desist letter in June 2025, and VGW later exited the New York market.
James said in announcing the agreement: “Our state’s gambling laws are designed to protect New Yorkers.” She added that “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 settlement includes penalties and closes legal action against VGW in New York, according to the source report. The available source material does not break down how the $8 million amount is allocated.
VGW says it will keep only gold coin play in New York
VGW said the deal resolves the matter and that it does not admit liability as part of the agreement. The company also said it plans to continue operating in New York only through gold coins play.
In a statement, VGW said it “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 added that it has operated in the U.S. for more than a decade and remains committed to engagement around “modern, appropriate regulatory structures.” The source report said VGW had been operating in New York since 2012.
Broader pressure on sweepstakes operators
The New York action lands amid a wider crackdown on sweepstakes operators. The source report said legislation passed in December 2025 to ban sweepstakes casinos in New York. It also noted that Maryland regulators ordered operators to leave that market in 2025, a California ban took effect in 2026, and VGW exited Canada entirely in May 2025.
What comes next in New York is narrower: the settlement closes this legal action, while VGW says any continued activity in the state will be limited to gold-coin play.
Source: As reported by Sean Chaffin.
