The owner of Chumba Casino, Global Poker, and LuckyLand Slots, VGW Holdings Ltd., has agreed to pay $8 million for violating New York State’s gaming laws. This settlement comes after an investigation revealed that these online platforms allowed users to gamble with “sweeps coins,” which could be redeemed for cash or prizes, contrary to state regulations.
The company will also reimburse users for the sweeps coins they held as of June 2, 2025. VGW ceased the use of sweeps coins following a cease-and-desist letter from New York Attorney General Letitia James. In her statement, James emphasized the financial and mental health risks these online casinos posed to New Yorkers.
VGW maintains that its operations do not equate to gambling, as they claim the sweeps coins were given for free. The company entered the New York market in 2012 and expanded its offerings over the years. Meanwhile, legal troubles are mounting for VGW, with lawsuits alleging violations of gaming laws in Kentucky and Maryland.
### Key Points:
– VGW to pay $8 million in penalties.
– Refunds for sweeps coins held before June 2, 2025.
– Ceased the use of sweeps coins following AG’s order.
– Additional lawsuits filed in other states for similar violations.
