New York Attorney General Letitia James has secured $8 million from VGW Holdings Pty. Ltd. and its affiliates for illegally operating online gambling platforms in the state.
The settlement covers VGW’s Chumba Casino, Global Poker, and Luckyland Slots, which allowed users to play casino games using virtual coins that could be redeemed for cash or prizes.
New York law prohibits online gambling involving something of value, including redeemable virtual coins. The Office of the Attorney General (OAG) sent VGW a cease-and-desist letter in June 2025, after which the company stopped offering sweepstakes coin gambling in New York.
Under the settlement, VGW will pay $8 million in disgorgement, penalties, and costs.
Consumers who were not previously notified by VGW may request to cash out any sweepstakes coins left in their accounts when the company ended its New York operations. VGW will process the redemptions using the exchange rate specified in the sweepstakes rules applicable at the time.
James said VGW breached New York Penal Law Sections 225.10 and 225.20, which prohibit promoting gambling and possessing gambling records. The company was also found to have violated Executive Law Section 63(12), which prohibits 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.”
VGW began offering Chumba Casino to New Yorkers in 2012, followed by Global Poker in 2016, and Luckyland Slots in 2018. The platforms used “sweeps coins,” which VGW claimed were provided for free and therefore did not constitute gambling.
However, an OAG investigation found that players could obtain the coins in a way similar to purchasing casino chips, receiving about one coin for every dollar spent on the platforms. Sweepstakes casinos allow users to play games such as slots, blackjack, and poker with virtual coins that can be redeemed for cash or prizes, including gift cards.
The OAG said the platforms posed additional risks because sweepstakes casinos are not subject to the audits and regulatory oversight required of licensed casinos in New York. The investigation found that some New Yorkers lost tens of thousands of dollars gambling on VGW’s platforms.
Following the OAG’s cease-and-desist action, VGW ended the sale of sweepstakes coins in New York. In December 2025, Governor Kathy Hochul signed legislation formally banning sweepstakes casinos in the state.
James has also taken action against other companies over alleged illegal gambling operations. In July 2026, she sued Kalshi over its operations in New York. In April, she sued Coinbase and Gemini over alleged illegal gambling platforms, while in January she sued video game developer Valve over alleged promotion of gambling through video games.
James urged New Yorkers to report unlicensed gambling platforms, misconduct, and gaming fraud to the New York State Gaming Commission. They can also report illegal gambling to the OAG anonymously through its online complaint form or by calling 1-800-771-7755.
Original article: https://www.yogonet.com/international/news/2026/09/10/126335-vgw-to-pay-8-million-over-illegal-new-york-gambling-platforms
