New York Attorney General Letitia James has taken action against 26 online sweepstakes casinos operating in the state by issuing cease-and-desist letters. These platforms, offering slot-style games, table games, and sports betting with redeemable virtual coins, may be violating New York’s gambling laws. This move aligns New York with Connecticut, Louisiana, and Montana, which recently banned such sweepstakes.
According to the Attorney General’s Office, these operations potentially violate state law by risking something of value on chance games without licensing. The state views the use of redeemable virtual coins as gambling.
Attorney General James emphasized the financial risks and lack of consumer protection associated with these platforms, thanking the New York State Gaming Commission and Senator Addabbo for their collaboration.
The New York State Gaming Commission, which cooperated in the investigation, highlighted the risks of unregulated gaming models, including rigged odds and identity theft.
The cease-and-desist letters have resulted in the following casinos halting the sale of sweepstakes coins in New York: Chanced, Chumba, DingDingDing, Fliff, Fortune Coins, Fortune Wheelz, Funrize, FunzCity, Global Poker, Golden Hearts Games, High 5 Casino, Jackpota, Luckyland, McLuck, Mega Bonanza, NoLimitCoins, Play Fame, RealPrize, Sidepot, SpinBlitz, Sportzino, SweepSlots, Sweeptastic, TaoFortune, Yay Casino, and Zula Casino.
Sweepstakes casinos allow users to play casino games using virtual sweepstakes coins, often exchangeable for real prizes or cash equivalents. This model is scrutinized in New York, where gambling is defined as risking something of value on games of chance. Redeemable virtual coins fall under this definition.
State officials highlight the lack of regulatory oversight, contrasting these platforms with licensed and regulated options. Players face uncertainties regarding game fairness, payout honor, and data security.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com
