VGW agrees to $8m New York settlement over sweepstakes casino operations

VGW Holdings Pty. Ltd. and affiliates have agreed to pay New York $8m to resolve allegations that Chumba Casino, Global Poker and Luckyland Slots were operated unlawfully in the state. For PSPs and acquirers, the point is straightforward: sweepstakes mechanics that let users buy virtual currency and obtain redeemable sweeps coins are now firmly in the enforcement crosshairs.

1. The settlement covers New York’s claims that VGW’s online sweepstakes casinos violated state law by involving gambling where players risked something of value, including redeemable virtual coins. The Office of the Attorney General said its investigation found players could obtain sweeps coins by purchasing packages of virtual currency, receiving about one coin for every dollar spent.
2. The $8m payment includes disgorgement, penalties and costs. The deal is structured as an Assurance of Discontinuance and does not include an admission of liability by VGW.
3. Attorney General Letitia James said her office will refrain from prosecuting conduct before VGW stopped sweeps-coin operations in New York, but can pursue enforcement if the company breaches the agreement. In other words, the matter is closed only so long as the paper trail stays clean.
4. VGW must enable eligible New York customers to redeem any remaining sweeps coins in their accounts as of June 2, 2025. Customers had until August 31, 2026, to file a valid redemption request.
5. VGW, based in Australia, launched Chumba Casino for New York players in 2012, followed by Global Poker in 2016 and Luckyland Slots in 2018. James’s office said some New York residents lost tens of thousands of dollars on the platforms. VGW said it 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 ahead of legislation that later banned online sweepstakes casinos in New York in December 2025.

New York’s Attorney General also sent VGW a cease-and-desist letter in 2025 as part of an initiative targeting 26 online sweepstakes casinos. For payment providers, that is the practical signal: if a product depends on redeemable virtual currency tied to sweepstakes play, the regulatory perimeter is no longer theoretical.