Sweepstakes casino operator Virtual Gaming Worlds (VGW) has paid New York regulators $8 million, following a cease-and-desist order issued by Attorney General Letitia James.
Key Takeaways
- VGW had been operating in New York since 2012 through three of its brands, Chumba Casino, Global Poker, and LuckyLand Slots.
- Governor Kathy Hochul signed a bill in December 2025 that outlawed sweepstakes gaming in the state.
New York regulators accused VGW of offering illegal gambling through its platforms, Chumba Casino, Global Poker, and LuckyLand Slots. Online sweepstakes casinos, which offer players the chance to play games mimicking those of online casinos by purchasing virtual coins that can then be redeemed for real-world prizes, are banned in New York.
“Our state’s gambling laws are designed to protect New Yorkers,” said James in a statement. “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.”
Chumba Casino was the first of VGW’s brands to go live in New York in 2012, followed by Global Poker in 2016, and LuckyLand Slots in 2018. Initially, VGW claimed that its platforms weren’t akin to online gambling as it offered free virtual coins named “sweeps coins.” However, an investigation led by the Attorney General’s Office found that this was not true and that they were actually given on a transactional basis; for every one dollar spent, a player would receive one virtual coin.
Following the June 2025 cease-and-desist orders targeting 26 platforms, VGW and other casinos ended the sale of sweepstakes virtual coins in the state. Then, in December, a bill that would prohibit sweepstakes gaming altogether in the state was signed by Governor Kathy Hochul.
Despite ending its sweepstakes operations in New York, VGW was still required to pay $8 million in disgorgement, penalties, and costs.
Enjoying Covers content? Add us as a preferred source on your Google account
LuckyLand Slots ends its tenure in North America
Prior to paying New York its $8 million fine, VGW also announced it would permanently close LuckyLand Slots across North America. The sweepstakes platform is set to shut down on Sept. 14, after it stopped accepting virtual coin purchases on Aug. 3 and closed gameplay on Aug. 24.
VGW had notified players of the planned closure through email and revealed that it would not affect its other brands, Chumba Casino, Global Poker, and LuckyLand Casino. Players were also told that coins purchased on LuckyLand Slots could not be transferred to its other brands and that any balances had to be redeemed by the shutdown date.
The closure of LuckyLand Slots comes amid a wave of states tightening regulations against sweepstakes gaming. This year, Indiana, Louisiana, Maine, Tennessee, and Oklahoma, have all passed anti-sweepstakes legislation, joining the likes of Montana, California, Connecticut, Nevada, New York, and New Jersey, which passed legislation the previous year.
