VGW Holdings has agreed to pay US$8 million to the State of New York to resolve an investigation into Chumba Casino, Global Poker and LuckyLand Slots, platforms that state prosecutors considered part of an illegal casino model.
The settlement was announced on September 9, 2026, by Attorney General Letitia James and was formalized through an Assurance of Discontinuance, an administrative resolution that avoids court litigation. The US$8 million includes disgorgement, penalties and costs. VGW neither admits nor denies the state’s findings. The investigation found that users could receive Sweeps Coins linked to purchases made on the platforms, at approximately one Sweeps Coin for every US$1 spent, and then use those units to play slots, blackjack or poker and redeem prizes for cash or other benefits.
VGW offered Chumba Casino from 2012, Global Poker from 2016 and LuckyLand Slots from 2018 to users in New York. The company says it stopped allowing users in the state to obtain Sweeps Coins on June 2, 2025. Four days later, James and the New York State Gaming Commission, chaired by Brian O'Dwyer and led operationally by Executive Director Robert Williams, announced an enforcement action against 26 sweepstakes casino platforms.
Mats Johnson
New York later strengthened its legal framework through S5935A/A6745A, sponsored by Senator Joseph P. Addabbo Jr. and Assemblymember Carrie Woerner. Governor Kathy Hochul signed the measure on December 5, 2025, creating Section 912, which provides for penalties ranging from US$10,000 to US$100,000 per violation.
The investigation was handled within the Bureau of Internet and Technology by Marc Montgomery and Jordan Adler, under Kim A. Berger and Clark P. Russell. VGW is currently led on an interim basis by Mats Johnson, Acting CEO since February 2, 2026, while founder Laurence Escalante remains on temporary leave.
