New York has secured an $8 million settlement from the operator of Chumba Casino, Global Poker and Luckyland Slots after state investigators said the online platforms illegally offered casino games using virtual coins redeemable for cash or prizes.
Attorney General Letitia James said VGW and its affiliates stopped offering the coins in New York after her office issued a cease-and-desist letter in June 2025.
The settlement requires VGW to pay $8 million in disgorgement, penalties and costs. New York formally banned online sweepstakes casinos in December 2025.
Sweepstakes casinos allow customers to play games such as slots, blackjack and poker with virtual currency. VGW maintained that its sweepstakes coins were free and therefore did not constitute gambling.
The attorney general's investigation found that customers effectively obtained about one sweepstakes coin for each dollar spent on packages containing other virtual currency. Because the coins could be redeemed for cash or prizes, the state said the arrangement involved risking something of value and violated New York gambling law.
VGW began offering Chumba Casino to New Yorkers in 2012, followed by Global Poker in 2016 and Luckyland Slots in 2018.
James said unlicensed sweepstakes casinos are not subject to state audits or the consumer protections that apply to legal gambling businesses. Her office said some New Yorkers lost tens of thousands of dollars on VGW's platforms.
The attorney general has brought other cases involving alleged illegal online gambling, including actions against Kalshi, Coinbase, Gemini and video game developer Valve.
James said the lack of licensing also leaves players without assurance that games are operated fairly or that an operator can cover a winning bet. Licensed casinos are subject to state oversight and other consumer-protection requirements.
New Yorkers can report suspected unlicensed gambling or gaming fraud to the state Gaming Commission. Complaints may also be filed anonymously with the Attorney General's Office or by calling 1-800-771-7755.
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