New York AG Secures $8 Million Settlement With Chumba Owner VGW

VGW is the company behind Chumba Casino, Global Poker and LuckyLand Slots. The settlement ends the New York attorney general’s case without a trial and, according to the release, without an admission of wrongdoing.

What the attorney general alleged

The case goes to the heart of how sweepstakes casinos work. Players buy Gold Coins, which have no cash value, and receive Sweeps Coins “free” with the purchase. Sweeps Coins can be played and, after meeting the playthrough rules, redeemed for cash prizes. Operators say that because Sweeps Coins are free, and also available by a mail-in request, no one pays for a chance to win. That is what is supposed to keep the model outside state gambling law.

The attorney general’s office did not accept that framing. It said VGW falsely claimed Sweeps Coins were free, and found that players received roughly one coin for every dollar spent, much as a casino customer buys chips. The release also noted that sweepstakes casinos operate without the state audits and oversight that apply to licensed gambling.

If you want the mechanics in detail, our explainer on how sweepstakes casinos work walks through the two-currency model and the free-entry route.

Context: VGW had already left New York

VGW began phasing out its sweepstakes games in New York on June 2, 2025, and completed the exit by August 1, 2025, according to trade press. The attorney general had sent VGW a cease-and-desist in June 2025. New York then passed an explicit ban: S5935A, signed on December 5, 2025 and effective immediately, prohibits dual-currency online sweepstakes games and sets penalties of $10,000 to $100,000 per violation.

So the settlement does not change what New Yorkers can play today. Chumba’s own terms already list New York as a state with no promotional (Sweeps Coins) play. What it does is put a price on past conduct and put the state’s legal theory on the public record.

Why it matters beyond New York

The model’s legal defense depends on regulators accepting that Sweeps Coins are a free bonus rather than something purchased. A large, public settlement built on the opposite view gives other states a ready reference.

VGW faces several other actions:

• Florida. The attorney general sued VGW and Stake.us, along with payment processors, on August 19, 2026 (our coverage).
• Kentucky. The attorney general sued VGW in June 2026, according to local press.
• Baltimore. The city sued VGW and several other operators under its consumer-protection law in March 2026.
• Maryland and Delaware. Regulators sent VGW cease-and-desist demands in 2025.

VGW also closed LuckyLand Slots this year; the final redemption window ended September 14, 2026 (our coverage).

Who is affected

The release says part of the payment is restitution, but we have not confirmed who qualifies or whether there is a claims process. Check the attorney general’s release, and be wary of third parties offering to file a claim for a fee.

Players in states where Chumba still operates are not directly affected by this settlement, though the number of states that allow Sweeps Coin play has fallen since 2025. Our Chumba Casino review shows the eligibility list from VGW’s own terms, with the date we checked it. Our state legal tracker covers every state.