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State of Play’s TL;DR
- VGW Holdings will pay $8 million and allow eligible New York customers to redeem certain sweeps coins as part of a settlement with Attorney General Letitia James.
- The settlement adds to growing regulatory pressure on sweepstakes casinos.
VGW Holdings Ltd. will pay $8 million and allow eligible New York customers to redeem certain sweeps coins under a settlement with Attorney General Letitia James, who said the company’s sweepstakes casino model violated state gaming laws.
The settlement matters because VGW operates some of the best-known sweepstakes brands in the US, including Chumba Casino, Global Poker, and LuckyLand Slots. It also adds to mounting regulatory and legal pressure on sweepstakes casino operators as more states move against models that let players use redeemable virtual currency.
According to James’ office, New York law prohibits online gambling when consumers risk something of value, including sweepstakes coins that can be redeemed for cash or prizes. The attorney general said VGW offered games including craps, blackjack and roulette using that model.
James said VGW stopped using sweeps coins in New York on June 2, 2025, about five weeks after receiving a cease-and-desist letter from her office. VGW said it will continue offering games in the state using Gold Coins only, which customers cannot exchange for cash or gift cards.
In announcing the settlement, James said online sweepstakes casinos “posed a dangerous threat to New Yorkers and their financial and mental health” and said her office was now “holding VGW accountable for the damage done.”
VGW, which is also known as Virtual Gaming Worlds, said the agreement is “not intended, and should not be construed, as an admission of liability.”
Who can seek redemption of sweeps coins
The settlement allows customers to seek repayment for the value of sweeps coins that were in their accounts as of June 2, 2025. According to the attorney general’s office, customers have one year from Aug. 31 to submit redemption requests.
James’ office said some New Yorkers lost tens of thousands of dollars on VGW’s games. The office also said investigators found consumers could spend $1 on the platform for each sweeps coin.
VGW entered New York with Chumba Casino in 2012, followed by Global Poker in 2016, and LuckyLand Slots in 2018.
Broader pressure on sweepstakes casino operators
The New York action comes after Gov. Kathy Hochul signed a bill late last year banning online casino sweepstakes such as those run by VGW. The state has also taken broader enforcement action against the sector. In June 2025, 25 online gambling sites were ordered to stop operating in New York.
VGW is also facing pressure outside New York. In June, Kentucky Attorney General Russell Coleman sued the company over its use of virtual coins. In March, Baltimore filed suit, alleging VGW targeted young people and violated Maryland gambling laws. Last year, Delaware’s Division of Gaming Enforcement found the company’s operations violated that state’s constitution.
New York State Gaming Commission Chairman Brian O’Dwyer previously described sweepstakes games as “unscrupulous, unsecure and unlawful.”
Based on reporting by James T. Madore for Newsday.
