Written by :
Published on :
OAKLAND PARK, Fla (Gambling911.com) - Chumba sweepstakes casino has agreed to pay an $8 million fine to the state of New York for ‘Unlawfully Running Online Gambling Platforms’.
The state filed its suit claiming Chumba Casino, Global Poker, and Luckyland Slots illegally offered players casino games using virtual sweepstakes coins exchangeable for cash and prizes.
New York Attorney General Letitia James today confirmed the state had secured the $8 million from VGW Holdings Pty. Ltd. and its affiliates (VGW), one of the largest operators of so-called “sweepstakes casinos".
In June 2025, the Office of the Attorney General (OAG) sent a cease and desist letter to VGW, successfully stopping the company from offering virtual coin gambling in New York. Under the settlement announced today, VGW will pay $8 million, including penalties.
“Our state’s gambling laws are designed to protect New Yorkers,” said Attorney General James. “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 issed the following statement to Gambling911.com Wednesday evening:
"VGW provides the following response to the announcement made 9 September, 2026 by The Office of the Attorney General of the State of New York (NYAG) following the agreed Assurance of Discontinuance between the parties.
"VGW welcomes the conclusion of this matter. As communicated to our New York players in May 2025, and detailed in the Assurance, VGW voluntarily ceased allowing players to collect Sweeps Coins through any method on 2 June, 2025, as part of a phase-out of Promotional Play (Sweeps Coins) in the State and in anticipation of new legislation relating to sweepstakes that took effect later that year.
"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.
"VGW also notes the Assurance states that it is “not intended, and should not be construed, as an admission of liability” by the company.
"VGW has operated in the US for more than a decade, creating not only great games, user experiences and entertainment for millions of Americans but ensuring this is done safely, responsibly and at the highest level of standards. We remain committed to respectful engagement on establishing modern, appropriate regulatory structures that benefit players and states alike."
Unlike real money casinos, sweepstakes casinos allow users to play traditional casino games, including slots, blackjack, and poker, using virtual sweepstakes coins that can be redeemed for cash or prizes, such as Amazon gift cards. Players typically purchase these virtual sweepstakes coins as part of a package with other virtual currency.
- Gilbert Horowitz, Gambling911.com
