VGW Agrees to Pay an $8M Settlement in New York

Sweepstakes casino operator VGW, the company behind brands such as Chumba Casino, Global Poker, and Luckyland Slots, has agreed to a settlement with New York Attorney General Letitia James. This development follows accusations that the company has been offering unlicensed gambling in New York since 2012. VGW is also facing scrutiny in other states as regulators nationwide intensify their crackdown against sweepstakes operators. James Accused VGW of Offering Illegal Gambling The attorney general’s office officially announced that sweepstakes operator VGW has agreed to pay $8 million and avoid a legal battle concerning its alleged illegal gambling activities. In 2025, VGW received a cease-and-desist letter from the attorney general’s office and subsequently stopped offering virtual coin gambling in the state. However, the investigation carried on. My office took action to stop these illegal platforms last year, and now we are holding VGW accountable for the damage done. Letitia James, New York Attorney General State laws strictly prohibit any type of unlicensed gambling that involves risking something of value, including redeemable virtual coins. Sweepstakes platforms often try to circumvent gambling regulations by operating with multiple digital currencies. Users can wager on virtual slot machines, blackjack, and poker. They can then redeem winnings for cryptocurrency, gift cards, or cash. Sweepstakes critics claim that this business model poses as much danger to consumers as traditional gambling, yet faces almost no state oversight. Players have no way of knowing whether the games are rigged or be certain that the company will pay out their winnings. According to James, some New Yorkers have lost tens of thousands of dollars through gambling on VGW’s platforms. Sweepstakes Face Rising Scrutiny Across the USA This development aligns with New York’s ongoing efforts to restrict what it sees as several types of unregulated gambling. In December 2025, Governor Kathy Hochul signed a bill that definitively ended the local sweepstakes sector. New York is also taking action against prediction markets, suing Kalshi for offering illegal sports wagering. The $8 million settlement marks yet another recent setback for VGW. The company is also facing trouble in several other states that are taking a closer look at sweepstakes. Florida Attorney General James Uthmeier is suing VGW, using similar arguments to those in New York. Uthmeier alleges that sweepstakes casinos violate Florida gambling law, harm residents, and deprive the state of licensing, tax, and other revenues. Overall, the future of sweepstakes operators is looking increasingly uncertain. Rising pressure forced VGW to eliminate its dual-currency system in Mississippi and New Jersey, effectively transitioning to a social casino model. Oklahoma, Tennessee, Kentucky, and Florida have also targeted the sector. It is becoming increasingly clear that these companies must evolve quickly or risk losing their business altogether.