VGW pays $8m to settle New York sweepstakes casino case

VGW Holdings, owner of Chumba Casino, has agreed to pay $8m to settle a New York investigation into its sweepstakes casinos. Attorney General Letitia James announced the deal on 9 September, according to Gambling.com. The payment covers disgorgement, penalties and costs.

The case covered three VGW brands: Chumba Casino, Global Poker and LuckyLand Slots. They let New Yorkers play slots, blackjack and poker using virtual Sweeps Coins that could be exchanged for cash or prizes. The Attorney General’s office said this broke state law against gambling that risks something of value.

VGW argued that Sweeps Coins were free, so no gambling took place. Investigators found players received roughly one Sweeps Coin per dollar spent. The settlement describes the free entry route, which required a handwritten postcard meeting set size and format rules. VGW placed no limit on how many paid packages a user could buy in one session. Some New Yorkers lost tens of thousands of dollars, according to the settlement.

James said online sweepstakes casinos “posed a dangerous threat to New Yorkers and their financial and mental health.”

Why it matters

The settlement goes to the heart of the sweepstakes model. Regulators are looking past the “no purchase necessary” label and asking how players actually use the product. If the free route is hard to use and most coins come with purchases, the coins look like stakes.

VGW stopped selling Sweeps Coins in New York after a cease-and-desist letter in June 2025. Governor Kathy Hochul then signed a statewide ban in December 2025. Gambling.com noted that none of the three brands can legally return as sweepstakes products.

For Gibraltar-based suppliers and affiliates, the message is that past activity can still bring penalties, even after an operator leaves a state. Contracts and marketing tied to US sweepstakes brands carry legal risk that is growing state by state.

What happens next

Oklahoma’s ban takes effect on 1 November, and other states have bills pending. More attorney general actions against sweepstakes operators are likely as bans spread.