NY's Attorney General intensifies enforcement actions against casino-styled sweepstakes establishments

NY's Attorney General intensifies enforcement actions against casino-styled sweepstakes establishments

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New York Cracks Down on Sweepstakes Casinos: The Battle Heats Up

Things are getting heated in the Empire State as 26 sweepstakes casino platforms received a stern warning from the Office of the Attorney General (OAG) and the New York State Gaming Commission. These platforms, operating against the state's laws, have been offering slots, table games, and sports betting through virtual coins with cash and prize redemption options.

OAG Takes Aim at 26 Sweepstakes Casinos

In a blunt statement, the OAG named and shamed these 26 platforms, including:

1. Chanced
2. Chumba
3. DingDingDing
4. Fliff
5. Fortune Coins
6. Fortune Wheelz
7. Funrize
8. FunzCity
9. Global Poker
10. Golden Hearts Games
11. High 5 Casino
12. Jackpota
13. Luckyland
14. McLuck
15. Mega Bonanza
16. NoLimitCoins
17. Play Fame
18. RealPrize
19. Sidepot
20. SpinBlitz
21. Sportzino
22. SweepSlots
23. Sweeptastic
24. TaoFortune
25. Yay Casino
26. Zula Casino

The OAG made it clear that these platforms operated beyond the reach of third-party audits or regulatory oversight, putting New Yorkers at risk of potential fraud.

AG James Lays Down the Law

New York's Attorney General, Letitia James, didn't mince words when discussing the OAG's latest operation. According to James, these so-called "sweepstakes games" are risky, unscrupulous, and flat-out illegal.

SPGA Hits Back: Sweepstakes Casinos Aren't Illegal

Not everyone agrees with the Attorney General's stance. The Social and Promotional Games Association (SPGA) has come to the defense of its members, arguing that the AG's characterization of sweepstakes casinos as "illegal" was misleading. They point out that their members adhere to consumer protection and responsible gaming practices.

Sen. Addabbo: Time for Sweepstakes Casinos to Pack Their Bags

For his part, Senator Joseph Addabbo expressed gratitude to the OAG for their swift action. Addabbo believes that sweepstakes casinos pose significant risks to individuals, potentially leading to fraud and financial exploitation.

As the dust settles, we'll see whether this move by the OAG and the New York State Gaming Commission is the beginning of the end for sweepstakes casinos in the state.

Image credit: Unsplash.com

Additional Insights:

1. New York Assembly Bill 2025-A6745A seeks to prohibit online sweepstakes games and revenue from illegal markets, implementing penalties for violations.
2. New York Senate Bill S5935 aims to ban online sweepstakes games and target businesses involved in their operation or promotion, with penalties ranging from $10,000 to $100,000.
3. While sweepstakes casinos remain legal in New York under current laws, the cease-and-desist letters suggest increased scrutiny and potentially stricter regulation or enforcement.
4. Despite the ongoing legal debate, the New York State Gaming Commission and the Office of the Attorney General have targeted 26 online platforms, including casinos like Chumba, Chanced, and Luckyland, accusing them of offering online gaming such as sports betting, putting these virtual casinos at the heart of the controversy.
5. As the hearing of New York Assembly Bill 2025-A6745A approaches, there are suggestions that responsible gaming practices should be integrated into the operations of these online gambling trends, such as casinos and sweepstakes casinos, to mitigate any potential risks to consumers.
6. The ongoing crackdown on sweepstakes casinos has led to a rise in conversations about gambling trends, with the Social and Promotional Games Association advocating for greater regulation, not prohibition, to ensure casinos, like Zula Casino and FunzCity, maintain ethical and moral standards, aligning with casino-and-gambling norms and practices.

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