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.
The settlement does not constitute an admission of liability by VGW
