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Global Poker's parent company, VGW Holdings, has agreed to pay $8 million to New York to settle allegations that it operated illegal online gaming platforms in the state.
New York Attorney General Letitia James announced the settlement this week. VGW operates several well-known sweepstakes gaming brands, including Global Poker, Chumba Casino, and Luckyland Slots.
New York had previously sent VGW a cease-and-desist letter in June 2025. The company eventually pulled its platforms from the state, leaving New York poker players with fewer online options. The $8 million settlement includes penalties and brings the state's legal action against VGW to an end.
VGW's platforms used the typical dual-currency sweepstakes model. Players could use gold coins to play for free, while purchasing gold coins could also provide sweeps coins that could be used in separate games and redeemed for cash or prizes.
New York officials argued that this setup effectively amounted to online gambling. Sweepstakes operators, including VGW, have maintained that players aren't required to make purchases and have pushed for regulation rather than outright bans.
The company said it appreciated the state's recognition of its cooperation during the investigation and stated that it will continue offering its social games in New York through gold-coins-only play.
VGW had operated in New York since 2012. However, the company has faced increasing regulatory pressure in other markets as well, including bans and forced exits in several U.S. states. VGW also completely exited the Canadian market in 2025.
For Global Poker players, this is another example of how much regulatory pressure sweepstakes poker has been facing. With more states moving against the model, it will be interesting to see whether companies like VGW eventually move toward fully regulated real-money poker or continue developing alternative models.
What do you guys think? Do you think sweepstakes poker sites should be regulated like traditional online poker rooms, or should states continue banning the sweepstakes model altogether?
Source: https://www.cardplayer.com/poker-ne...er-owner-8-million-for-sweeps-casino-business
New York Attorney General Letitia James announced the settlement this week. VGW operates several well-known sweepstakes gaming brands, including Global Poker, Chumba Casino, and Luckyland Slots.
New York had previously sent VGW a cease-and-desist letter in June 2025. The company eventually pulled its platforms from the state, leaving New York poker players with fewer online options. The $8 million settlement includes penalties and brings the state's legal action against VGW to an end.
The Sweepstakes Model
VGW's platforms used the typical dual-currency sweepstakes model. Players could use gold coins to play for free, while purchasing gold coins could also provide sweeps coins that could be used in separate games and redeemed for cash or prizes.
New York officials argued that this setup effectively amounted to online gambling. Sweepstakes operators, including VGW, have maintained that players aren't required to make purchases and have pushed for regulation rather than outright bans.
VGW Doesn't Admit Wrongdoing
Despite agreeing to the $8 million settlement, VGW did not admit liability or wrongdoing.The company said it appreciated the state's recognition of its cooperation during the investigation and stated that it will continue offering its social games in New York through gold-coins-only play.
VGW had operated in New York since 2012. However, the company has faced increasing regulatory pressure in other markets as well, including bans and forced exits in several U.S. states. VGW also completely exited the Canadian market in 2025.
For Global Poker players, this is another example of how much regulatory pressure sweepstakes poker has been facing. With more states moving against the model, it will be interesting to see whether companies like VGW eventually move toward fully regulated real-money poker or continue developing alternative models.
What do you guys think? Do you think sweepstakes poker sites should be regulated like traditional online poker rooms, or should states continue banning the sweepstakes model altogether?
Source: https://www.cardplayer.com/poker-ne...er-owner-8-million-for-sweeps-casino-business
