VGW Holdings, the Australian company behind Chumba Casino, Global Poker and LuckyLand Slots, has agreed to pay $8 million to settle claims that it ran illegal online gambling in New York. Attorney General Letitia James announced the deal on September 9, and the money covers disgorgement, penalties and costs.

The case goes back a long way. VGW started taking New York players through Chumba Casino in 2012, added Global Poker in 2016 and LuckyLand Slots in 2018. It kept going until the attorney general’s office sent it a cease-and-desist letter in June 2025, which stopped the sale of sweeps coins in the state.

One Coin for Every Dollar

The heart of the case is the currency. Like other dual-currency sites, VGW gave players Gold Coins to play for fun and “sweeps coins” that could be redeemed for cash or prizes such as Amazon gift cards. VGW’s position was that sweeps coins were handed out for free, so nothing on the site counted as gambling.

The attorney general didn’t buy it. Her office’s investigation found that players could get sweeps coins “the same way one might purchase chips in a casino,” receiving approximately one coin for every dollar spent. Under New York law, this qualifies sweepstakes coins as gambling, as the tokens are worth real money.

What the State Says Players Lost

The release is blunt about the harm. It says some New Yorkers lost tens of thousands of dollars on VGW’s platforms, and that without state audits “players have no way of knowing whether a sweepstakes casino’s games are rigged.”

“Our state’s gambling laws are designed to protect New Yorkers,” said Attorney General Letitia James. “My office took action to stop these illegal platforms last year, and now we are holding VGW accountable for the damage done.”

A Settlement That Follows a Ban

VGW was not the only target back then. In June 2025 the attorney general’s office, working with the New York State Gaming Commission, identified 26 online platforms offering slots, table games and sports betting with redeemable coins, and all 26 agreed to stop selling sweeps coins in the state.

Lawmakers then closed the door for good. Governor Kathy Hochul signed Senate Bill S5935 on December 5, 2025, amending the Racing, Pari-Mutuel Wagering and Breeding Law to formally ban dual-currency sweepstakes casinos in New York and setting civil penalties of $10,000-$100,000 per violation. The law also reaches suppliers, payment processors and affiliates that support these sites.

Why the Money Still Matters

That leaves an obvious question. If VGW had already left New York, why pay $8 million now? Because the investigation into what happened between 2012 and June 2025 carried on after the exit, and a cease-and-desist letter only stops the conduct. It doesn’t recover anything.

The market it served was not small either. Industry research firm Eilers & Krejcik Gaming put New York’s sweepstakes casino sales at roughly $762 million before the state’s enforcement actions and ban took hold.

Florida Is Next in Line

For VGW, New York is one front among several. On August 19, Florida Attorney General James Uthmeier initiated legal proceedings in the Hillsborough County Circuit Court against the operators of Stake and of VGW’s Chumba Casino, LuckyLand Slots and Global Poker, along with associated payment processors.

Uthmeier was clear about his aims. “If it looks like a casino, takes real money like a casino, and pays out like a casino, it is a casino,” he said. His suits seek permanent injunctions that would bar the companies from operating in Florida, plus recovery of money lost by Florida players.

Small Change Next to Its Revenue

The company can afford the bill. VGW reported revenue of A$7.3 billion and net profit of A$656 million for the year to June 30, 2025, and founder Laurence Escalante took full control of the business that August. Against numbers like that, $8 million is small change.

The list of states where sweepstakes casinos are legal keeps getting shorter, and New York has now collected from one of the biggest names in the business without taking it to trial.