The New York Attorney General announced on 9 September 2026 a settlement under which VGW Holdings Pty. Ltd. and its affiliates pay $8 million over the operation of online sweepstakes casinos in New York. The brands at issue are Chumba Casino, running since 2012, Global Poker, running since 2016, and LuckyLand Slots, running since 2018. The matter resolved through an assurance of discontinuance following an investigation by the Office of the Attorney General, so there is no contested judicial finding of liability.
Chapter 605 of the Laws of 2025, enacted from Senate Bill S5935A and signed on 5 December 2025, added section 912 to the Racing, Pari-Mutuel Wagering and Breeding Law. Section 912 makes it unlawful to operate, conduct or promote an online sweepstakes game in New York, and unlawful for financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers and media affiliates to support one. The section reaches games available online or on an access device that use a dual currency payment system permitting the exchange of currency for cash prizes or cash equivalents while simulating casino style gaming, including slots, table games, lottery games, bingo and sports wagering. Violations carry fines of $10,000 to $100,000 per violation, and the State Gaming Commission, the State Police and the Attorney General may enforce the section.
Operators running dual currency sweepstakes products are exposed in New York whether or not they hold a gaming licence elsewhere. The supplier limb of section 912 places payment processors, geolocation vendors, gaming content suppliers, platform providers and media affiliates inside the prohibition, so a vendor serving a sweepstakes operator carries exposure of its own rather than only the operator carrying it. The Office of the Attorney General treated the sale of virtual coins at roughly one coin per dollar as the purchase of a gambling stake rather than a free promotion.
The Office of the Attorney General sent VGW a cease and desist letter in June 2025, before section 912 was signed, and states that the sale of sweepstakes coins in New York ended. The $8 million is stated as a single sum covering disgorgement, penalties and costs, without a published split between those heads. The detailed terms sit in the assurance of discontinuance rather than in the announcement.
Licentium advises gaming operators, payment providers and platform suppliers on United States state gambling prohibitions and sweepstakes product structuring. Work we undertake includes reviewing dual currency mechanics against section 912 of the Racing, Pari-Mutuel Wagering and Breeding Law, assessing supplier side exposure for processors and affiliates, and preparing state by state withdrawal and geofencing plans.
Source: New York State Office of the Attorney General, press release, 9 September 2026