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OAKLAND PARK, Fla (Gambling911.com) - Chumba sweepstakes casino has agreed to pay an $8 million fine to the state of New York for ‘Unlawfully Running Online Gambling Platforms’.
The state filed its suit claiming Chumba Casino, Global Poker, and Luckyland Slots illegally offered players casino games using virtual sweepstakes coins exchangeable for cash and prizes.
New York Attorney General Letitia James today confirmed the state had secured the $8 million from VGW Holdings Pty. Ltd. and its affiliates (VGW), one of the largest operators of so-called “sweepstakes casinos".
In June 2025, the Office of the Attorney General (OAG) sent a cease and desist letter to VGW, successfully stopping the company from offering virtual coin gambling in New York. Under the settlement announced today, VGW will pay $8 million, including penalties.
“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.”
Unlike real money casinos, sweepstakes casinos allow users to play traditional casino games, including slots, blackjack, and poker, using virtual sweepstakes coins that can be redeemed for cash or prizes, such as Amazon gift cards. Players typically purchase these virtual sweepstakes coins as part of a package with other virtual currency.
- Gilbert Horowitz, Gambling911.com
