New York Sends Global Poker Parent an $8M Sweepstakes Bill

Why VGW Has an $8 Million Bill to Pay

VGW has been in New York for quite some time. Chumba Casino arrived in 2012, Global Poker followed a few years after, in 2016, and Luckyland Slots joined the fold in 2018, each one with a dual-currency system, which has come under scrutiny in this $8 million investigation.

For years, players could use Gold Coins for social play, while Sweeps Coins were used in separate games and could ultimately be redeemed for cash or prizes — since Sweeps Coins were provided for free, the model didn’t constitute gambling, at least, according to VGW.

However, the New York Attorney General came to a very different conclusion.

The office also said New Yorkers lost tens of thousands of dollars across VGW’s platforms, arguing that sweepstakes operators weren’t subject to the same audits and consumer protections imposed on licensed casinos.

Attorney General Letitia James didn’t mince her words when announcing the settlement:

The Attorney General’s office actually sent VGW a cease-and-desist letter back in June 2025 as part of a wider action against 26 sweepstakes operators. In response, VGW stopped allowing New York players to collect Sweeps Coins on June 2 as it phased out promotional play in the state.

New York then made its position considerably more permanent, as Governor Kathy Hochul signed legislation formally prohibiting online sweepstakes casinos in the Empire State in December 2025.

The $8 million fine we’re discussing is the sum total of disgorgement, penalties and costs into the activity that came before the exit.

While they are still footing the bill, VGW hasn’t admitted liability as part of the agreement and maintains that it voluntarily ceased Sweeps Coin play in anticipation of the legislation that followed. The company said it “welcomes the conclusion of this matter” and has continued to argue for regulatory frameworks for social gaming rather than outright prohibition.

New York Is Only One Piece of a Much Bigger Sweepstakes Puzzle

While VGW’s $8 million settlement is the jaw dropping headline right now, the issue with sweepstakes casinos is something that has been brewing beyond just the Empire State.

The sweepstakes model has spent the past few years in an increasingly uncomfortable position in the US. Operators argue that their dual-currency products are social and sweepstakes gaming rather than conventional real-money gambling, pointing in part to no-purchase-necessary methods of obtaining promotional currency.

Regulators and lawmakers in a growing number of states aren’t buying it.

New York is now among the states that have explicitly legislated against the dual-currency model. New Jersey and Montana introduced their own bans in 2025, while Tennessee was among the handful states to enact legislation against the model in 2026. Other jurisdictions have used existing gambling laws, regulatory orders and cease-and-desist letters rather than dedicated sweepstakes legislation.

The effect of that legislation on just VGW’s US footprint has been considerable. Since 2024, it has withdrawn its sweepstakes products from more than ten states. Its Sweeps Coin products are no longer available in markets including New York, New Jersey, Connecticut, Maryland, Montana, Nevada and West Virginia, among others.

As more states decide exactly where they draw the line between a sweepstakes and online gambling, it may not be the last expensive bill the industry will have to foot.