VGW to pay $8m New York settlement over “unlawful” sweepstakes operation
Luckyland Slots parent company settles with state after Attorney General Letitia James finds it ran unlawful online gambling platforms
VGW Holdings is set to pay an $8m (£5.9m) settlement in New York after the state’s Office of the Attorney General (OAG) found it had “unlawfully run online gambling platforms”.
The settlement, secured by Attorney General Letitia James, includes disgorgement, penalties and costs
VGW, which operates the Chumba Casino, Global Poker, and Luckyland Slots brands, was first issued with a cease-and-desist order by the OAG in June 2025 along with a host of other sweepstakes casinos.
The Australia-based operator first entered the Empire State with Chumba Casino in 2012, before expanding its online offerings to Global Poker in 2016 and then Luckyland Slots in 2018.
The platforms offered a virtual currency in the form of ‘sweeps coins’, which the operator claimed didn’t constitute gambling as they were provided to players for free.
An investigation conducted by the OAG found players could purchase sweeps coins in the same manner as people might buy chips in a casino, with customers receiving one coin for every dollar spent on a VGW platform.
New York Governor Kathy Hochul officially signed a ban on sweepstakes casinos in the state into law in December 2025.
An OAG statement read: “Gambling on online sweepstakes casinos is especially risky because sweepstakes casinos are not subject to audits and other regulatory oversight by the state.
“Without oversight, players have no way of knowing whether a sweepstakes casino’s games are rigged, whether it will be able to cover a winning bet, or whether it complies with the many other consumer protection measures required of legal, licensed casinos under New York law.
“Some New Yorkers lost tens of thousands of dollars through gambling on VGW’s platforms.”
James added: “Our state’s gambling laws are designed to protect New Yorkers. Online sweepstakes casinos like Chumba Casino, Global Poker and Luckyland Slots posed a dangerous threat to New Yorkers and their financial and mental health.
“My office took action to stop these illegal platforms last year, and now we are holding VGW accountable for the damage done.”
The New York settlement represents the latest legal pushback VGW has encountered across the US as multiple states have clamped down on sweepstakes casinos.
Florida Attorney General James Uthmeier filed a lawsuit against both VGW and Stake last month for offering “illegal online gambling” in the state.
VGW also shuttered operations in West Virginia in November 2025 after encountering legal difficulties in the Mountain State.
Regulators in Washington, Michigan, Idaho, Nevada and California have prohibited sweepstakes gaming, with the likes of Montana, Connecticut, Louisiana and New Jersey set to follow suit.
Earlier this year, VGW founder Laurence Escalante took a leave of absence from the company following an arrest for charges related to domestic violence.