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New York Attorney General Letitia James has secured an $8 million settlement from VGW Holdings Pty. Ltd. and its affiliates, one of the world’s largest operators of sweepstakes casinos.
The case centered on VGW’s platforms, Chumba Casino, Global Poker, and Luckyland Slots, which offered players casino‑style games using virtual coins that could be redeemed for cash or prizes.
Investigators found that these “sweeps coins” were marketed as free but in practice were tied directly to money spent on the platforms, making them no different from chips in a casino. James stated: “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.”
The Office of the Attorney General (OAG) had issued a cease‑and‑desist order in June 2025, forcing the company to halt the sale of sweepstakes coins in the state. “Following careful consideration, we’ve informed players of a decision to phase out Promotional Play (sweepstakes promotions) in the state of New York,” a VGW spokesperson told SBC Americas at the time.
Following the C&D, Governor Kathy Hochul signed a formal ban on sweepstakes casinos into law in December.
New York continues unlicensed gambling crackdown
The $8 million settlement includes penalties, disgorgement, and costs, and comes alongside a broader push by James to clamp down on unlicensed gambling.
Just weeks earlier, the state had moved against prediction market operator Kalshi, seeking to block it from offering event‑based contracts and demanding damages of $36 billion. That lawsuit quickly escalated when the Commodity Futures Trading Commission (CFTC) stepped in, using emergency powers to keep Kalshi active.
The agency argued that New York’s request for a restraining order amounted to a “market emergency” and warned that shutting down Kalshi could cripple event contracts nationwide.
The dispute is part of a larger battle between state regulators and prediction markets, that has already made its way through the Ninth Circuit and appears destined for the Supreme Court.
Hochul has also pressed for stronger consumer protections in the legal market. In her State of the State agenda this January, she called for biometric age checks such as facial recognition and thumbprint scanners to stop under‑21 users from opening sportsbook accounts or using someone else’s login.
She also urged limits on how betting companies deploy artificial intelligence in promotions, arguing that AI‑driven marketing must not target minors or vulnerable groups.
As for VGW, the latest settlement comes amid a wave of negative news for the company. In the last year, it has faced lawsuits in Louisiana and Baltimore, and has left multiple markets, including Canada last August.
Still, an $8 million fine might not feel too intense for a company that reportedly hit $5 billion in revenue last year before founder and former CEO Laurence Escalante took the company private. Escalante stepped down in July this year, months after being charged with family assault in Australia.
