VGW Settles With New York Attorney General for $8m

VGW Holdings Pty. Ltd., the operator of popular sweepstakes casino brands Chumba, Global Poker, and LuckyLand, has agreed to pay $8m to the New York Attorney General to resolve an investigation into its previous operations in the state.

The news was announced yesterday in a press release from the Office of the New York AG, Letitia James.

This appears to be the first multimillion dollar settlement between a US state and a sweepstakes casino operator, although VGW previously settled for $11.75m in Kentucky as part of a private class action brought by players.

However, neither settlement represents an admission of wrongdoing, despite allegations that the operators were offering illegal gambling. In both cases, VGW agreed to pay to resolve the dispute rather than contest the allegations in court, which could have created significant legal costs.

Timeline of New York’s Action Against VGW

NY AG Letitia James issued cease-and-desist letters to 26 sweepstakes casinos operating with dual-currency formats in the Empire State in 2025. All operators ended up complying, including VGW.

The letters cited the following laws:

• New York Constitution, Article I, § 9: Prohibits gambling in the state unless the activity has been specifically authorized by law.
• New York Penal Law §§ 225.00–225.40: Sets out what constitutes illegal gambling, including staking something of value on a game of chance for the opportunity to win something of value.

However, this wasn’t the end of the battle against sweeps operators in NY, as lawmakers passed a sweepstakes-banning bill in the form of S 5935A, which was signed into law by Governor Kathy Hochul in December.

That law specifically prohibits online sweepstakes games that use a dual-currency system. VGW’s brands had been offering casino-style gaming in this way with a setup of Gold Coins and Sweeps Coins, allowing players to redeem the Sweeps Coins for real cash. In fact, VGW and Chumba established the dual-currency model (that kickstarted the modern sweepstakes industry) in 2012.

As part of the Assurance of Discontinuance with the AG, VGW has agreed to:

• Not offer NY consumers the ability to stake or risk redeemable virtual items on casino games.
• Pay $8m in “disgorgement, restitution, penalties, and costs”.
• Not “make any public statement denying, directly or indirectly, any finding” in the Assurance or stating that the Assurance is without legal or factual basis.
• Give certain former New York customers who still had eligible Sweeps Coins the opportunity to request redemption of those balances.

The agreement also states that James’ office can initiate a “subsequent investigation, civil action, or proceeding to enforce this Assurance” if VGW violates it.

Other Similar Ongoing Cases

There are three other cases involving government authorities versus sweeps operators currently ongoing across the US:

• In September 2025, the Los Angeles City Attorney sued Stake.us, Easygo, Kick, and a list of game suppliers, alleging that Stake.us was operating an illegal gambling enterprise in California. The case is notable because it also targets suppliers that allegedly aided the operation.
• In March 2026, Baltimore sued six major social-casino operators, including VGW. The city alleges that the platforms were operating illegal gambling disguised as sweepstakes and violated Baltimore’s consumer-protection laws.
• In August 2026, Attorney General James Uthmeier filed two lawsuits against VGW and Stake, along with affiliated payment processors. The complaints allege that their dual-currency models constitute illegal gambling and violate Florida’s Deceptive and Unfair Trade Practices Act. The suits seek to stop the operators from operating or soliciting in Florida and seek forfeiture, restitution, and civil penalties.

All three cases remain unresolved, so none have yet produced a final ruling. We continue to monitor each.