VGW to Pay $8 Million in New York Sweepstakes Casino Settlement

NEW YORK – VGW has agreed to pay $8 million to settle a New York investigation into its sweepstakes casino operations.

The agreement keeps redeemable sweepstakes play off VGW’s New York platforms and gives some former customers another opportunity to redeem eligible Sweeps Coins.

Attorney General Letitia James announced the settlement Sept. 9 involving VGW Holdings and affiliates behind Chumba Casino, Global Poker and Luckyland Slots. Her office said the platforms unlawfully offered casino-style games using virtual currency that could be exchanged for cash or prizes.

Settlement Includes $8 Million Payment

Under the New York Attorney General’s settlement announcement, VGW will pay $8 million in disgorgement, restitution, penalties and costs. The agreement resolves the investigation without VGW admitting liability, and the company neither admitted nor denied the Attorney General’s findings.

The settlement also requires VGW to continue complying with New York laws that prohibit customers from risking redeemable virtual items on games of chance or future events. VGW may continue offering entertainment-only products using Gold Coins that cannot be redeemed for cash or prizes.

New York customers who did not previously receive notice of VGW’s 2025 phase-out will have one year from the agreement’s Aug. 31 effective date to request redemption of qualifying Sweeps Coins held as of June 2, 2025. Valid requests will be paid according to the redemption terms that applied at the time.

VGW Ended Sweepstakes Play in New York in 2025

VGW began offering Chumba Casino to New York users in 2012, followed by Global Poker in 2016 and Luckyland Slots in 2018. Its platforms used Gold Coins alongside Sweeps Coins, with only the latter eligible for redemption for cash or gift cards.

The Attorney General’s investigation found that customers generally received Sweeps Coins alongside purchases of Gold Coins, often at a rate close to one Sweeps Coin for each dollar spent. VGW maintained that the redeemable currency was provided free as part of those packages.

The company began withdrawing sweepstakes promotions from New York in 2025 amid growing regulatory pressure. The Attorney General’s Office issued a cease-and-desist letter in April, and VGW stopped providing Sweeps Coins to New York residents on June 2.

New York subsequently expanded its action across the sector, with 26 sweepstakes casino operators receiving cease-and-desist demands. State lawmakers later enacted an explicit prohibition on the dual-currency sweepstakes casino model in December 2025.

New York Continues Sweepstakes Casino Enforcement

James said the state’s gambling laws are intended to protect consumers and argued that platforms operating without state oversight lack safeguards required of licensed gambling operators. Her office said some New York users had lost tens of thousands of dollars on VGW platforms before redeemable sweepstakes play ended.

The $8 million agreement converts the state’s earlier enforcement action against VGW into a financial settlement and continuing compliance obligations. It does not indicate that VGW is ending its operations elsewhere in the United States, and the settlement specifically concerns its activities in New York.

For New York, the settlement follows the state’s transition from enforcement under existing gambling statutes to an explicit statutory prohibition on sweepstakes casinos. VGW must now make the required payment and maintain the restrictions established by the agreement.

RELATED TOPICS: Regulation