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SettlementHigh Risk

NY AG Secures $8 Million from VGW Holdings for Illegal Online Sweepstakes Casinos

VGW Holdings Pty. Ltd.September 9, 2026New York Attorney General

Penalty Amount

$8,000,000

Summary

New York Attorney General Letitia James secured an $8 million settlement from VGW Holdings Pty. Ltd. and its affiliates for unlawfully operating online sweepstakes casinos — Chumba Casino, Global Poker, and Luckyland Slots — that allowed New Yorkers to play casino games with virtual coins exchangeable for cash or prizes. The OAG's June 2025 cease and desist letter stopped the company from offering virtual coin gambling in New York, and Governor Hochul signed a formal ban on sweepstakes casinos into law in December 2025. Under the settlement, VGW will pay $8 million in disgorgement, penalties, and costs; note this is an illegal-gambling enforcement action rather than a privacy matter, so no privacy violation taxonomy categories apply.

Remedy

VGW will pay $8 million in disgorgement, penalties, and costs to New York. The company had already ended the sale of sweepstakes coins in New York following the OAG's June 2025 cease and desist letter.

Monetary Penalty

Contract Impact

This is an illegal-gambling enforcement action rather than a privacy matter, so the priority review is gaming and sweepstakes compliance language rather than data-protection clauses. In-house teams whose companies operate, sponsor, or partner with sweepstakes promotions, social casinos, or virtual-currency programs should review vendor, platform, affiliate, and marketing agreements for representations and warranties that offerings comply with state gambling laws — including New York's 2025 ban on sweepstakes casinos — and confirm whether any 'virtual coins' or rewards described as 'free' are in fact redeemable for cash or prizes and therefore constitute regulated gambling. Check payment-processing and app-store agreements for gambling-related restrictions, and verify that indemnification, regulatory-penalty, and termination clauses allocate exposure for enforcement actions, disgorgement, and cease-and-desist letters. Privacy teams should also confirm that consumer data collected through these gaming platforms is covered by the underlying data processing agreements, since gambling enforcement often triggers parallel scrutiny of consumer data practices.

Contract Search Terms

sweepstakessweepstakes coinsvirtual currencyredeemable for cashonline gamblinggaming licensestate gambling law complianceprohibited activitiesprizes and gift cardscease and desist

Laws Cited

New York gambling lawsNew York ban on sweepstakes casinos (2025)

Violation Types

Entity Details

Entity

VGW Holdings Pty. Ltd.

Industry

Gaming

Official Sources

Source Evidence

Entity Name
"secured $8 million from VGW Holdings Pty. Ltd. and its affiliates (VGW), one of the largest operators of so-called “sweepstakes casinos,” for unlawfully running online gambling platforms in New York"
Fine Amount
"As a result of OAG’s investigation, VGW will pay $8 million in disgorgement, penalties, and costs."
Event Date
"September 9, 2026"
Event Type
"Under the settlement announced today, VGW will pay $8 million, including penalties."
Laws Cited
"New York law prohibits online platforms from offering gambling that involves risking something of value, including redeemable virtual coins."
Violation Types
"VGW’s online casinos – Chumba Casino, Global Poker, and Luckyland Slots – allowed users to play traditional casino games using virtual coins that could be exchanged for cash or prizes."

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