VGW Agrees to $8 Million Settlement with New York AG Over Sweepstakes Casino Operations

New York Attorney General Letitia James has secured an $8 million settlement from VGW Holdings Pty. Ltd. and its affiliates, resolving allegations that the company unlawfully operated online gambling platforms in the state through its sweepstakes casino brands. The agreement, announced this week, also requires the Australia-based operator to allow customers to redeem the value of “sweeps coins” held in their accounts, providing a remedy for New York players affected by the closure of its platforms.

Background of the Case

VGW is one of the largest operators in the sweepstakes casino sector, with its brands including Chumba Casino, LuckyLand Slots, and Global Poker. These platforms operate on a dual-currency model in which players use virtual coins for gameplay, with “sweeps coins” functioning as a promotional currency that can be redeemed for cash prizes. Regulators in multiple states have argued that this structure effectively constitutes real-money gambling conducted outside of state licensing and regulatory frameworks.

According to the Attorney General’s office, VGW began offering its products to New Yorkers in 2012 through Chumba Casino. The office estimated that some New York residents lost tens of thousands of dollars playing the company’s games.

Settlement Terms

Under the agreement, VGW will pay $8 million to the state and must permit customers to seek reimbursement for the value of sweeps coins remaining in their accounts. The settlement resolves the state’s claims without imposing admission of liability, and commentators have noted that the outcome allows VGW to exit New York without an adversarial judgment.

Attorney General James stated that the state’s gambling laws are designed to protect New Yorkers, framing the settlement as part of a broader enforcement effort against unlicensed online gambling.

Broader Regulatory Context

The settlement is the latest development in a sustained crackdown on sweepstakes gaming in New York. In June 2025, the Attorney General’s office announced enforcement actions against 26 sweepstakes platforms, all of which subsequently ceased operations in the state. In December 2025, Governor Kathy Hochul signed legislation formally banning casino- and sportsbook-style sweepstakes gaming in New York, a measure championed by Senator Joseph Addabbo.

The pressure on the sector is not limited to New York. Connecticut, Montana, and Nevada have enacted similar bans, California passed its AB 831 legislation prohibiting gambling-themed sweepstakes games, and Illinois regulators have issued cease-and-desist letters to dozens of operators. Several other state legislatures have considered comparable measures, and numerous attorneys general have initiated their own enforcement actions.

VGW has also faced litigation in other jurisdictions, though it secured a dismissal of a gambling loss recovery lawsuit in Ohio earlier this year. Separately, the Kentucky Attorney General filed a complaint against the company over its sweepstakes operations.