VGW Agrees $8 Million Settlement With New York Attorney General

Virtual Gaming Worlds (VGW) has agreed to pay $8 million to settle an investigation by the New York Attorney General's Office into the operation of its sweepstakes casino platforms in the state.

Attorney General Letitia James announced the settlement on 10 September 2026, following an investigation into VGW's Chumba Casino, Global Poker and Luckyland Slots brands. The investigation found that the platforms offered casino-style games using virtual currencies that could be redeemed for cash or prizes, in breach of New York's gambling laws.

The settlement comprises disgorgement, penalties and costs. VGW had already stopped offering its sweepstakes coin gambling products in New York following enforcement action in June 2025.

Investigation Examines VGW's Sweepstakes Coin Model

VGW began operating Chumba Casino in New York in 2012 before expanding its presence through Global Poker in 2016 and Luckyland Slots in 2018.

The platforms offered casino-style games through a virtual currency system that included sweeps coins, which could be used to play games and redeemed for cash or prizes.

According to the Attorney General's Office, VGW maintained that its sweeps coins were provided free of charge and therefore did not constitute gambling under New York law.

However, investigators found that players could obtain the coins through purchases on the platforms, receiving approximately one sweeps coin for every dollar spent. The Attorney General's Office concluded that this arrangement effectively allowed customers to acquire redeemable gaming currency in a manner comparable to purchasing casino chips.

New York law prohibits unauthorised online gambling involving the risk of something of value, including virtual currencies that can be exchanged for cash or prizes.

The Attorney General's Office issued VGW a cease-and-desist letter in June 2025, prompting the operator to end the sale of sweepstakes coins in the state.

Attorney General Secures $8 Million Settlement

The settlement requires VGW to pay $8 million in disgorgement, penalties and costs following the investigation into its New York operations.

Attorney General James said the action was intended to enforce the state's gambling laws and address the risks associated with unauthorised online casino platforms.

“Our state’s gambling laws are designed to protect New Yorkers,” James said. “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.”

The agreement follows VGW's withdrawal of its sweepstakes coin offering from New York in June 2025. The source announcement did not provide details of any additional operational requirements imposed on VGW as part of the settlement.

New York Expands Enforcement Against Online Gambling

The VGW settlement comes amid broader action by New York authorities against online gambling products operating outside the state's authorised framework.

In December 2025, Governor Kathy Hochul signed legislation formally prohibiting sweepstakes casinos, introducing a specific statutory ban following earlier enforcement activity against operators using redeemable virtual currencies.

The Attorney General's Office is also pursuing legal action against prediction market operator Kalshi and cryptocurrency platforms Coinbase and Gemini over allegations that their products constitute illegal gambling operations.

In January 2026, James additionally filed a lawsuit against video game developer Valve, alleging that certain features within its games facilitated illegal gambling involving products popular with children and teenagers.

Those proceedings are separate from the VGW settlement, and the allegations against the other companies remain subject to their respective legal processes.

The $8 million agreement concludes the Attorney General's investigation into VGW's former New York sweepstakes casino operations, following the operator's withdrawal from the state's market and the subsequent introduction of legislation specifically targeting sweepstakes casinos.