News

VGW agrees $8m settlement with New York over sweepstakes casinos

The company will continue operating social games in the state using Gold Coins only.

· 1 min read
Share this article
Follow us on Google
AI Summary
Sign in to listen
new york
Key Points
VGW will pay $8m in disgorgement, penalties and costs under the settlement
The company ended Sweeps Coins play in New York in June 2025
VGW will continue offering social games in the state using Gold Coins only

VGW has reached an $8m settlement with the New York Attorney General's office over its former sweepstakes casino operations in the state, bringing the regulator's investigation into the company to a close.

The investigation concerned VGW's Chumba Casino, Global Poker and Luckyland Slots platforms, which allowed players to use virtual Sweeps Coins that could ultimately be redeemed for cash or prizes. New York authorities maintained that the model constituted unlawful online gambling because players were risking something of value.

VGW began offering Chumba Casino in New York in 2012, before adding Global Poker in 2016 and Luckyland Slots in 2018. The Attorney General's investigation found that players could obtain Sweeps Coins alongside purchases of other virtual currency, with approximately one coin received for every dollar spent.

The operator began phasing out its Promotional Play model in New York in 2025. VGW said it voluntarily stopped allowing players to collect Sweeps Coins through any method on June 2, ahead of legislation targeting sweepstakes casinos that was signed into law later that year.

The Attorney General's office also sent VGW a cease-and-desist letter in June 2025. New York subsequently enacted a formal ban on sweepstakes casinos in December.

Under the Assurance of Discontinuance, VGW will pay $8m covering disgorgement, penalties and costs. The company emphasized that the agreement is not intended to be construed as an admission of liability and welcomed the conclusion of the investigation.

VGW will continue operating its online social games in New York solely through Gold Coins, its non-redeemable virtual currency. The company said it remains committed to engaging on regulatory frameworks for social gaming and sweepstakes promotions in the US.

Good to know

The settlement does not constitute an admission of liability by VGW

Reaction Board

News Analysis

View All
NBA analysis

Will the NBA’s parlay restrictions actually lead to resolutions?

The league’s authorized sports betting partners were told to restrict parlay wagers and ‘first of’ markets on October 16, such as the winner of the opening tip and players to miss specific shots.

6 min read • • By Kirk Geller
Italy Analysis

The end of Italy's sponsorship loophole? AGCOM takes aim at gambling infotainment deals

Italy’s gambling infotainment partnerships have let betting operators maintain a presence in football despite the country’s advertising ban. Now, AGCOM’s proposed new guidelines could change the game.

5 min read • • By Marieta Lezaic
Pontus Q3 26 Interview

Pontus Lindwall explores Betsson's Q3 profitability and 'unexpected' challenges in Brazil

Betsson CEO Pontus Lindwall speaks exclusively to Global Gaming Insider to discuss Q3 results, B2B challenges, Latin American growth and the company’s cautious approach to Brazil.

4 min read • • By Marieta Lezaic

In The News

View All