New York Attorney General Letitia James (D) introduced an $8 million settlement with sweepstakes gaming operator VGW Holdings on Wednesday. The state had accused the corporate of working unlawful on-line gaming platforms within the state.
VGW is the corporate behind Global Poker, Chumba Casino, and Luckyland Slots. The Office of the Attorney General (OAG) beforehand despatched a cease-and-desist letter to VGW in June 2025.
The operator later exited the market, leaving poker gamers within the state with restricted choices. The $8 million settlement consists of penalties and brings authorized motion towards VGW within the state to a detailed.
“Our state’s gambling laws are designed to protect New Yorkers,” James mentioned. “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 different sweeps operators, VGW makes use of a dual-currency gaming mannequin. Players can use gold cash to play without cost, whereas those that buy extra gold cash obtain sweeps cash as a bonus foreign money.
Players can use sweeps cash in separate video games and change them for money or prizes. State gaming regulators declare the platforms are merely on-line playing.
Operators counter with the argument that customers aren’t required to buy something. They favor state regulation over outright bans. VGW leaving the market adopted legislators pushing for a sweepstakes ban. Legislation finally handed in December 2025.
Company Does Not Admit Liability
VGW mentioned it welcomes a conclusion to the authorized matter in New York. The firm admitted no legal responsibility as a part of the settlement with state officers.
“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 corporate mentioned.
“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 working within the Empire State since 2012. It has confronted pushback and bans in different states as nicely.
Maryland regulators ordered operators to exit the market in 2025. A ban in California went into impact this 12 months. The sweeps platform exited the Canadian market utterly in May 2025.
Online gaming is against the law in New York, however some legislators have made overtures towards legalizing the business lately.
