New York Attorney General Letitia James said the state had reached an $8 million settlement with VGW Holdings and its affiliates over what investigators described as illegal online gambling in New York. The agreement was announced on Sept. 9 and covers VGW’s Chumba Casino, Global Poker and LuckyLand Slots brands.
Those sites let users play traditional casino games with virtual coins that could be exchanged for cash or prizes. The attorney general’s office said VGW argued the coins were free, but investigators found players could obtain sweeps coins much the way they buy casino chips, at roughly one for every dollar spent.
New York law bars online gambling that involves risking something of value, including redeemable virtual coins. SportsBettingDime reported that the state said VGW’s conduct violated Penal Law sections 225.10 and 225.20, as well as Executive Law 63(12).
The case grew out of a broader crackdown last year. In June 2025, the Office of the Attorney General sent VGW a cease-and-desist letter after it and the New York State Gaming Commission identified 26 online platforms offering slots, table games and sports betting using virtual coins exchangeable for cash or prizes. VGW stopped offering virtual-coin gambling in New York on June 2, 2025.
Under the settlement agreement dated Aug. 31, VGW will pay $8 million in disgorgement, restitution, penalties and costs. SportsBettingDime reported that consumers who did not previously receive a notification from VGW can submit a request to redeem sweeps coins that were still in their account when the platform ceased operations in New York, and that VGW will redeem requested coins at the rate of exchange in the then-applicable version of the platform’s sweepstakes rules.
James said the state’s gambling laws are designed to protect New Yorkers, and that sweepstakes casinos posed a threat to their financial and mental health. She also urged New Yorkers to report unlicensed gambling platforms, misconduct or gaming fraud to the New York State Gaming Commission.
VGW told Newsday that the agreement was not, and should not be construed as, an admission of liability. The company said it would continue in New York only through Gold Coins play, where customers do not exchange coins for cash or gift cards. Customers have one year from Aug. 31 to submit redemption requests for sweeps coins in their accounts as of June 2, 2025.
