New York Attorney General Letitia James has successfully obtained $8 million from VGW Holdings Pty. Ltd. and its subsidiaries for their unlawful online gambling activities within the state.
This settlement pertains to VGW's platforms, including Chumba Casino, Global Poker, and Luckyland Slots, which enabled users to engage in casino games using virtual coins that could be exchanged for cash or prizes.
According to New York law, online gambling that involves anything of value, including redeemable virtual coins, is prohibited. The Attorney General's Office (OAG) issued a cease-and-desist order to VGW in June 2025, prompting the company to halt its sweepstakes coin gambling operations in New York.
As part of the settlement, VGW will pay $8 million in disgorgement, penalties, and other costs.
Consumers who were not previously informed by VGW can request to cash out any sweepstakes coins remaining in their accounts when the company ceased its New York operations. VGW will facilitate these redemptions according to the exchange rate defined in the sweepstakes rules at that time.
James stated that VGW violated New York Penal Law Sections 225.10 and 225.20, which forbid the promotion of gambling and the possession of gambling records. The company was also found to have breached Executive Law Section 63(12), which prohibits repeated fraudulent or illegal practices.
“Online sweepstakes casinos like Chumba Casino, Global Poker, and Luckyland Slots posed a significant risk to New Yorkers and their financial and mental well-being,” remarked James. “My office acted to shut down these illegal platforms last year, and we are now ensuring VGW is held accountable for the harm caused.”
VGW introduced Chumba Casino to New Yorkers in 2012, followed by Global Poker in 2016 and Luckyland Slots in 2018. The platforms utilized “sweeps coins,” which VGW claimed were free and thus did not qualify as gambling.
However, an investigation by the OAG revealed that players could acquire these coins in a manner akin to purchasing casino chips, receiving approximately one coin for every dollar spent on the platforms. Sweepstakes casinos permitted users to play games such as slots, blackjack, and poker with virtual coins redeemable for cash or prizes, including gift cards.
The OAG noted that these platforms presented additional hazards since sweepstakes casinos lack the audits and regulatory scrutiny mandated for licensed casinos in New York. The investigation uncovered that some New Yorkers lost tens of thousands of dollars while gambling on VGW’s platforms.
Following the OAG’s cease-and-desist order, VGW ceased the sale of sweepstakes coins in New York. In December 2025, Governor Kathy Hochul enacted legislation that formally prohibited sweepstakes casinos in the state.
James has also initiated actions against other companies for alleged illegal gambling practices. In July 2026, she filed a lawsuit against Kalshi concerning its operations in New York. Earlier in April, she sued Coinbase and Gemini over purported illegal gambling platforms, and in January, she took legal action against video game developer Valve for allegedly promoting gambling through video games.
James encouraged New Yorkers to report any unlicensed gambling platforms, misconduct, and gaming fraud to the New York State Gaming Commission. They can also report illegal gambling anonymously to the OAG via its online complaint form or by calling 1-800-771-7755.