Sweepstakes casino operator’s Chumba Casino, Global Poker and Luckyland brands found to have illegally offered players casino games using virtual sweepstakes coins
New York Attorney General Letitia James has secured $8 million from sweepstakes casinos operator VGW for unlawfully running online gambling platforms in New York.
VGW’s Chumba Casino, Global Poker and Luckyland Slots brands were found to allow users to play traditional casino games using virtual coins that could be exchanged for cash or prizes.
New York law prohibits online platforms from offering gambling that involves risking something of value, including redeemable virtual coins.
In June 2025, the Office of the Attorney General (OAG) sent a cease-and-desist letter to VGW, successfully stopping the operator from offering virtual coin gambling in the state.
“Our state’s gambling laws are designed to protect New Yorkers,” said Attorney General James. “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.”
VGW began offering online gambling to New Yorkers in 2012 through Chumba Casino and expanded its online offerings with Global Poker in 2016 and Luckyland Slots in 2018.
According to the AG, VGW attempted to evade New York’s ban on sweepstakes casinos by offering a type of virtual coin called “sweeps coins,” which VGW claimed were provided for free and therefore did not constitute gambling.
An OAG investigation into VGW’s platforms found that, in reality, players could obtain “sweeps coins” the same way one might purchase chips in a casino, receiving approximately one coin for every dollar spent on the platform.
As a result of OAG’s cease and desist letters, the operators ended the sale of sweepstakes coins in New York in June 2025. In December, Governor Hochul signed New York’s formal ban on sweepstakes casinos into law.
Following OAG’s investigation, VGW will pay $8 million in disgorgement, penalties and costs.
Continuing to take action to prevent illegal gambling in New York, Attorney General James is also suing Kalshi for running an illegal gambling operation, as well as Coinbase and Gemini for running illegal gambling platforms.
In January, AG James sued Valve, a video game developer, for illegally promoting gambling through video games popular with children and teenagers.