VGW, the sweepstakes gaming behemoth behind Chumba Casino, Global Poker, and LuckyLand Casino, must pay $8 million to the state of New York and allow Sweeps Coin redemption requests until August 2027, per a settlement announced by New York Attorney General Letitia James on Wednesday.
In June, VGW’s sites were among the 20-plus sweeps casino brands James announced had received a cease-and-desist from her office. There have been no publicly announced settlements between New York and any of the other operators that received cease-and-desists.
“Our state’s gambling laws are designed to protect New Yorkers,” James said via a release. “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.”
Beyond James’ mountain of cease-and-desists, New York also legislatively banned dual-currency sweepstakes casinos in December 2025.
VGW discontinued its Sweeps Coin gameplay in New York in June 2025. Gold Coin gameplay — Gold Coins cannot be redeemed for real money while Sweeps Coins can — is still live and operational at all VGW sites in New York.
VGW highlights its ‘cooperation throughout’ NY’s investigation
VGW sent out a press release late Wednesday night with its response to the settlement.
VGW welcomes the conclusion of this matter.
As communicated to our New York players in May 2025, and detailed in the Assurance, VGW voluntarily ceased allowing players to collect Sweeps Coins through any method on 2 June, 2025, as part of a phase-out of Promotional Play (Sweeps Coins) in the State and in anticipation of new legislation relating to sweepstakes that took effect later that year.
VGW appreciates the NYAG’s recognition of VGW’s cooperation throughout its investigation and looks forward to continuing to operate its online social games in the State of New York solely through Gold Coins play.
VGW also notes the Assurance states that it is “not intended, and should not be construed, as an admission of liability” by the company.
VGW has operated in the US for more than a decade, creating not only great games, user experiences and entertainment for millions of Americans but ensuring this is done safely, responsibly and at the highest level of standards. We remain committed to respectful engagement on establishing modern, appropriate regulatory structures that benefit players and states alike.
So, what exactly does the settlement say?
Here’s a breakdown of the key elements in the 11-page settlement.
The agreement, formalized as an Assurance of Discontinuance, requires VGW to pay $8 million to New York and stop offering games that allow residents to play for cash-redeemable prizes, which has already happened.
At the center of the dispute was VGW’s dual-currency system, the traditional model of sweepstakes casinos.
In this model, players can purchase Gold Coins, which are used for entertainment and have no cash value. Those purchases also come with promotional Sweeps Coins, which can be used to play casino-style games and eventually redeemed for real money or gift cards.
That setup was the problem, according to New York officials.
The state argued that, despite being marketed as a sweepstakes system, VGW’s platforms effectively operated as unregulated online gambling sites. New York has strict laws governing gambling, and the state’s position was that using something of value for the chance to win real money can constitute gambling, regardless of the terminology used by the operator.
The Attorney General also raised concerns about the lack of the safeguards that come with licensed gambling in New York. VGW’s platforms were not subject to the same state oversight and auditing requirements as regulated casinos, and she argued players did not have the same consumer protections. State officials pointed to cases in which New Yorkers reportedly lost tens of thousands of dollars while playing on the platforms.
The Aug. 31, 2027 cutoff date, no admission of wrongdoing
Under the settlement, VGW will also have to honor valid redemption requests for Sweeps Coins that remained in eligible New York customer accounts as of June 2, 2025. Customers who qualify have until one year after Aug. 31, 2026, to submit their claims.
The company is also permanently barred from offering New York residents cash-redeemable coins, real-money prizes, or sweepstakes casino games. VGW can continue operating social games in the state, but those games must be strictly free-to-play, using virtual currency that cannot be exchanged for cash or prizes.
Importantly, the settlement does not amount to an admission of wrongdoing by VGW. The company agreed to the $8 million payment and the new restrictions without formally admitting that it violated New York law. In return, the state agreed not to pursue prosecution over the company’s past operations, although it can take action if VGW violates the settlement going forward.
