New York Attorney General Letitia James has obtained an $8 million civil settlement from VGW Holdings, the parent company of Chumba Casino, Global Poker and LuckyLand Slots, after investigators concluded the operator had run unlawful sweepstakes gambling in the state. The payment ends the inquiry without litigation, though the company did not acknowledge any violation of New York gambling law. The resolution follows a 2025 cease-and-desist order and a statewide measure signed in December 2025 that banned sweepstakes casinos in New York.
Settlement amount and no admission of liability
The settlement totals $8 million and covers disgorgement, penalties and costs, according to Yahoo Finance. Casino.org reported that the deal, known as an Assurance of Discontinuance, avoids formal court proceedings. VGW neither accepted nor denied the state’s assertion that it violated New York gambling law. The attorney general agreed not to bring charges over conduct before the company ended its sweepstakes operations in 2025, but she may prosecute again if the company does not follow the agreement’s terms.
Cease-and-desist orders preceded the ban
In June 2025, the attorney general’s office issued cease-and-desist orders to 26 sweepstakes platforms, including the three VGW brands. Casino.org reported that all 26 eventually exited New York. After those orders, VGW and other operators stopped selling sweepstakes virtual coins in the state, according to Yahoo Finance. Governor Kathy Hochul then signed legislation in December 2025 that made sweepstakes gaming unlawful across New York. The state’s first VGW brand launched much earlier: Chumba Casino went live in 2012, Global Poker in 2016 and LuckyLand Slots in 2018.
Investigators challenged the sweeps coins model
Yahoo Finance reported that VGW originally argued its platforms were not online gambling because players received free virtual coins called sweeps coins. The attorney general’s investigation found otherwise: players were given one virtual coin for every dollar spent, meaning the coins were marketed and provided on a transactional basis. James said the sites “posed a dangerous threat to New Yorkers and their financial and mental health,” and that her office acted to stop them the prior year. She also said sweepstakes play is especially risky because operators are not subject to state audits or regulatory oversight, according to Casino.org.
VGW response and trade group defense
VGW said it “welcomes the conclusion of this matter” in a statement to Casino.org. The company said it had told New York players in May 2025 and confirmed in the settlement that it voluntarily stopped letting players accumulate Sweeps Coins by any method on June 2, 2025, as it phased out promotional play before the new legislation took effect. VGW said it plans to continue offering online social games in New York using only Gold Coins play. The company also noted that the assurance says it should not be construed as an admission of liability. The Social Gaming Leadership Alliance, a trade group that includes VGW, has defended the model as the same freemium approach used in free-to-play games, where optional purchases enhance play.
LuckyLand Slots closure announced separately
Before the New York payment, VGW said it would permanently close LuckyLand Slots across North America, with a shutdown date of September 14, 2026. The platform stopped accepting virtual coin purchases on August 3 and ended gameplay on August 24, Yahoo Finance reported. The company notified players that any balances had to be redeemed by the closing date and that the decision would not affect its other brands. That closure was not described as part of the New York settlement.
