New York Attorney General Letitia James announced this week that VGW, the company behind Chumba Casino, Global Poker, and Luckyland Slots, will pay $8 million to resolve allegations of operating an illegal gambling operation. The company was active in New York from 2012 until June 2025, after James had sent a cease-and-desist letter two months earlier, demanding that VGW stop offering sweepstakes games.
As part of the settlement, VGW must notify players who have not collected their outstanding sweeps coins, allowing them to redeem these coins for one year. Importantly, VGW does not admit to the criminal allegations made by the state.
In her statement, James highlighted that New York's gambling laws are in place to safeguard residents. "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," she said.
The settlement amount, which includes disgorgement and penalties, is relatively minor compared to VGW's financial standing. The Australian-based operator reported over $5 billion in revenue in 2025 before its founder, Laurence Escalante, took the company private.
This settlement is part of a larger effort by James in the gambling sector. Recently, she engaged in a significant legal battle against Kalshi, arguing that its sports event contracts amounted to illegal sports betting. This followed a court ruling denying Kalshi's request for an injunction pending appeal of its loss in U.S. District Court for the Southern District of New York.
James stated about the Kalshi case, "New York’s gambling laws protect children from underage betting and help combat gambling addiction. No matter what they call themselves, prediction markets like Kalshi are gambling platforms, plain and simple. By ignoring our laws, Kalshi is running an illegal operation and harming New Yorkers in the process. We are taking them to court to uphold our laws and protect New Yorkers."
This move against Kalshi came less than a year after Governor Kathy Hochul enacted legislation banning sweepstakes casinos in New York.
VGW is not the only company facing scrutiny; last year, James issued cease-and-desist orders to 26 sweepstakes operators, including companies like Chumba, DingDingDing, and Fliff. A VGW spokesperson recognized the challenges posed by the decision to stop their promotional play in New York, stating, "Following careful consideration, we’ve informed players of a decision to phase out Promotional Play (sweepstakes promotions) in the state of New York. This decision wasn’t taken lightly and was made at this time in the best interests of all our stakeholders."
