Sweepstakes Giant VGW Fined $8M by NY Attorney General

The bad news continues for sweepstakes casino operator VGW after it was fined $8 million in New York over “unlawful online gambling”.

The New York attorney general’s office has been gunning for sweepstakes casinos for a while. The settlement comes after the AG issued multiple cease-and-desist letters to sweeps operators in 2025.

The fine comes after Florida announced it was also charging VGW with “operating illegal online gambling enterprises”.

VGW is the largest sweepstakes casino operator in the U.S. and owns several major gambling sites, including Chumba Casino, Luckyland, and Global Poker.

New York vs Sweepstakes Casinos

The story starts in June 2025 when the New York Attorney General Letitia James announced sweeping (pardon the pun) action on sweepstakes. New York formally banned sweepstakes casinos in December that year.

Working alongside the New York State Gaming Commission, the AG’s office identified 26 online sweepstakes casinos that were in breach of the law.

New York has had legalized sports betting since 2022. However, despite several attempts, online casinos are still outlawed.

Laws on brick-and-mortar casinos were relaxed in 2025, however. Three new casinos could be built – in Queens and the Bronx – over the coming years.

Sweepstakes & the Legal Gray Area

The model of sweepstakes casinos is what has riled the AG so much. VGW’s Chumba Casino brand went live in 2012, offering a dual-currency form of online betting.

New York residents over 18 have been able to play online slots and table games that look and feel like those at real-money sites.

There’s one difference: games are free to play (using Gold Coins) and there’s no monetary reward for hitting the jackpot.

There’s a caveat, however: it’s possible to earn Sweeps Coins at sweepstakes casinos through promotions and other contests. These Sweeps Coins do carry a monetary value tht the player can withdraw into a bank account.

“Online sweepstakes casinos like Chumba Casino, Global Poker, and Luckyland Slots posed a dangerous threat to New Yorkers and their financial and mental health,” Letitia James said, adding that her office was taking action for the “damage done” to New Yorkers.

Florida Action, Luckyland Slots Closure

VGW has been fighting on multiple fronts the past month, it seems. In August, Florida attorney-general James Uthmeier filed suits against VGW and another major sweeps operator, Stake.us.

The charges allege that VGW violates gambling laws in a state that has no regulated online casinos. Uthemeier called out sweeps casinos, saying that “if it looks like a casino, takes real money like a casino, and pays out like a casino, it is a casino.”

Florida went one step further than New York in also suing payment processors. The suits specifically targeted processors including Trustly that facilitate online payments.

Additionally, VGW closed one of its smaller sweepstakes casinos, Luckyland Slots. The casino closed its online doors on 24 August. However, customers have until Monday to redeem any gift cards.

Maine Joins NY in Outright Ban

Other states have been outlawing sweepstakes casinos in recent months. In April, Maine joined New York in effectively banning sweeps casinos outright. Any operator still operating after the 14 July deadline has faced $10,000 penalties.

However, Maine still falls behind New York in the ferocity of its campaign against unregulated betting.

This year alone, New York has sued prediction market Kalshi and crypto exchange Coinbase for running what it calls illegal gambling sites.