Attorney General James Secures $8 Million from Leading Operator of Illegal Online Sweepstakes Casinos

NEW YORK – New York Attorney General Letitia James today secured $8 million from VGW Holdings Pty. Ltd. and its affiliates (VGW), one of the largest operators of so-called “sweepstakes casinos,” for unlawfully running online gambling platforms in New York. VGW’s online casinos – Chumba Casino, Global Poker, and Luckyland Slots – allowed users to play traditional casino games using virtual coins that could be exchanged for cash or prizes. New York law prohibits online platforms from offering gambling that involves risking something of value, including redeemable virtual coins. 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.”

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.

VGW began offering online gambling to New Yorkers in 2012 through Chumba Casino and expanded its online offerings with Global Poker in 2016 and Luckyland Slots in 2018. In an attempt to evade New York’s ban on sweepstakes casinos, all VGW platforms offered a type of virtual coin called “sweeps coins,” which VGW claimed were provided for free and therefore did not constitute gambling. An OAG investigation into VGW’s platforms found that, in reality, players could obtain “sweeps coins” the same way one might purchase chips in a casino, receiving approximately one coin for every dollar spent on the platform.

Gambling on online sweepstakes casinos is especially risky because sweepstakes casinos are not subject to audits and other regulatory oversight by the state. Without oversight, players have no way of knowing whether a sweepstakes casino’s games are rigged, whether it will be able to cover a winning bet, or whether it complies with the many other consumer protection measures required of legal, licensed casinos under New York law. Some New Yorkers lost tens of thousands of dollars through gambling on VGW’s platforms.

As a result of OAG’s cease and desist letters, the operators ended the sale of sweepstakes coins in New York. In December 2025, Governor Hochul signed New York’s formal ban on sweepstakes casinos into law.

As a result of OAG’s investigation, VGW will pay $8 million in disgorgement, penalties, and costs.

Attorney General James has issued multiple consumer alerts warning New Yorkers about the hazards of gambling and has issued industry alerts to encourage compliance with state laws. Attorney General James has also taken action to prevent illegal gambling in New York. In July 2026, Attorney General James sued Kalshi for running an illegal gambling operation in New York. In April 2026, she sued Coinbase and Gemini for running illegal gambling platforms. In January 2026, Attorney General James sued Valve, a video game developer, for illegally promoting gambling through video games popular with children and teenagers.

Attorney General James urges New Yorkers to report unlicensed gambling platforms and any misconduct or gaming fraud to the New York State Gaming Commission. New Yorkers are also encouraged to report illegal gambling to OAG by filing a complaint online, which can be done anonymously, or calling 1-800-771-7755.

This matter was handled by Assistant Attorney General Marc Montgomery and Senior Enforcement Counsel Jordan Adler of the Bureau of Internet and Technology, under the supervision of Bureau Chief Kim A. Berger and Deputy Bureau Chief Clark P. Russell. The Bureau of Internet and Technology is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Meghan Faux.