New York Attorney General Letitia James (D) has reached an $8 million settlement with VGW Holdings over allegations that the company operated illegal online gaming platforms in the state.
The agreement covers penalties and closes the state’s legal action against VGW, the company behind Global Poker, Chumba Casino and Luckyland Slots. VGW previously left the New York market after the Office of the Attorney General (OAG) issued a cease and desist letter in June 2025.
The operator’s exit reduced the number of online poker and gaming options available to players in the state. New York’s settlement follows legislation banning sweepstakes gaming that was passed in December 2025.
State Challenges Dual Currency Model
VGW’s products used the dual currency structure common among sweepstakes operators. Players could access games with gold coins at no cost, while purchases of additional gold coins came with sweeps coins as a bonus currency.
Sweeps coins could then be used in separate games and exchanged for cash or prizes. State gaming regulators have argued that this model amounts to online gambling, while operators have maintained that their platforms are not gambling because users are not required to make a purchase.
Sweepstakes operators have generally supported regulation rather than outright prohibition. In New York, however, VGW’s departure followed legislative efforts to prohibit the model.
“New York’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.”
VGW Denies Liability
VGW said it welcomed the conclusion of the New York case and did not admit liability under the settlement.
“VGW appreciates the NYAG’s recognition of VGW’s cooperation throughout its investigation and looks forward to continuing to operate its online social games in the state of New York solely through gold coins play,” the company said.
The company added that it had operated in the US for more than a decade and remained committed to engaging with officials on “modern, appropriate regulatory structures” for players and states.
VGW had operated in New York since 2012 and has faced restrictions elsewhere. Maryland regulators ordered operators to leave the market in 2025, while a ban in California took effect this year. VGW also exited the Canadian market entirely in May 2025.
Online gaming remains illegal in New York, although some legislators have supported legalising the industry in recent years.
