VGW Settles New York Sweepstakes Inquiry
Australia-based Virtual Gaming Worlds (VGW) has agreed to pay $8 million to settle a New York inquiry into its online sweepstakes casino operations, according to a report from Casino.org. The company operates sweepstakes-style brands including Chumba Casino and LuckyLand Slots, which have built a large player base in the United States.
The New York inquiry examined whether VGW's sweepstakes model — which uses dual virtual currencies and a "no purchase necessary" entry mechanism — effectively constituted unlicensed online casino gambling in the state. The $8 million payment resolves the matter and closes a chapter that has been watched closely by regulators, operators and investors across the sector.
Sweepstakes casinos have expanded rapidly across the US in recent years, occupying a grey zone