Sweepstakes Operator VGW Settles With New York For $8 Million
AG Letitia James announces payment, says ‘we are holding VGW accountable for the damage done’
VGW, the sweepstakes gaming giant that operates such sites as Chumba Casino, Luckyland Slots, and Global Poker, exited New York state in the summer of 2025 following a cease-and-desist letter from Attorney General Letitia James. But that wasn’t enough to satisfy James. She announced Wednesday afternoon that VGW paid $8 million as a penalty for “unlawfully running online gambling platforms in New York.”
The New York legislature formally banned online sweepstakes casinos last December.
“Our state’s gambling laws are designed to protect New Yorkers,” said James in the release announcing the settlement. “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.”
VGW first began operating in New York in 2012, using a dual currency system that sweepstakes sites have long purported make the products legal in the U.S. But in one state after another over the past two years, the sites have been declared illegal and/or have been ordered to leave.
“Gambling on online sweepstakes casinos is especially risky because sweepstakes casinos are not subject to audits and other regulatory oversight by the state,” reads the AG’s release. “Without oversight, players have no way of knowing whether a sweepstakes casino’s games are rigged, whether it will be able to cover a winning bet, or whether it complies with the many other consumer protection measures required of legal, licensed casinos under New York law. Some New Yorkers lost tens of thousands of dollars through gambling on VGW’s platforms.”
Bad news abounds for sweeps
VGW was one of more than two dozen sweeps operators that received a C&D from James last year. The AG’s office has not announced settlements with any of the others yet.
It’s been a tumultuous year for VGW, which is not only facing questions about the legality of its platforms around the U.S., but has also endured personal scandal surrounding its founder, Laurence Escalante. He took a leave of absence following his January arrest for aggravated assault, domestic violence, destruction of property, and possession of illegal substances with intent to sell or supply, then resigned as CEO in July.
Mats Johnson, the acting CEO, signed the New York settlement documents.
Eric has been a professional editor and writer for more than 25 years, including nearly 20 years of experience covering the gambling industry. He was editor-in-chief of the poker magazine All In from 2005-2015 and manag…
