VGW has reached an $8 million settlement with New York, following an investigation into its sweepstakes casino operations. This announcement, made by Attorney General Letitia James on September 9, highlights the state's commitment to enforcing gambling laws.
The investigation revealed that VGW operated Chumba Casino, Global Poker, and LuckyLand Slots in New York, utilizing a dual-currency system involving Sweeps Coins, which players could exchange for cash or prizes. However, authorities found that VGW’s practices breached several state regulations, including promoting gambling and maintaining gambling records.
According to the Attorney General’s findings, players were able to earn approximately one Sweeps Coin for every dollar spent, contradicting VGW’s claim that these coins were free and did not constitute gambling. The settlement mandates VGW to pay the $8 million for restitution, penalties, and costs, and requires the company to allow certain former customers to redeem Sweeps Coins until June 2, 2025.
James emphasized the importance of protecting New Yorkers, stating that such online casinos represent a significant risk to the financial and mental well-being of residents. The settlement follows a cease-and-desist order issued by her office in April 2025, after which VGW ceased its Sweeps Coin operations in the state. New York has since enacted legislation banning dual-currency online sweepstakes casinos, joining several other states in regulating this sector.
In response, VGW expressed satisfaction with the resolution, clarifying that the settlement does not imply any admission of liability. The company plans to continue its online gaming activities in New York, but exclusively through Gold Coins.
In other news, the landscape of prediction markets is shifting. Robinhood and Kalshi are pursuing different legal strategies following a Ninth Circuit ruling on sports event contracts. While Kalshi seeks a rehearing of its case, Robinhood is appealing directly to the U.S. Supreme Court, indicating a strategic partnership in their legal battles.