Spectroscopic properties and continuous-wave laser performance of a new Yb(0.009):Y(0.575)Gd(0.416)VO(4) mixed vanadate crystal are reported. Purely sigma-polarized laser oscillation at 1013-1009.5 nm, with quantum defect lower than 3%, is demonstrated at room temperature in free running mode under diode pumping, producing an output power of 1.55 W with optical-to-optical and slope efficiencies of 19% and 32%, respectively. At longer wavelengths where the pi-polarized oscillation exhibited higher gain, the output power reached 2.5 W, with a slope efficiency of 41%.