New York attorney general orders 26 online sweepstakes casinos to stop activities in state
New York Attorney General Letitia James and the New York State Gaming Commission have sent cease-and-desist letters to 26 online sweepstakes casinos they say have been operating in the state illegally.
Together, the Office of the Attorney General (OAG) and the commission identified websites offering slots, table games and sports betting. Sweepstakes casinos allow users to play casino games using virtual sweepstakes coins that can be redeemed for cash or prizes.
However, online casinos are not currently legal in the state, while internet sports betting is only allowed through approved operators. New York law also prohibits gambling online with non-cash items, such as virtual coins, for cash or prizes
The OAG and commission said that despite the operators’ characterisation that players secure virtual coins to gamble, this still constitutes online casino gaming.
As such, they deemed all sites flagged in the investigation to be operating illegally, with cease-and-desist letters sent out in response. State Senator Joseph Addabbo also supported the OAG and commission on the case.
What websites are being shuttered in New York?
The OAG and commission named all the sweepstakes casino brands in a statement on the investigation. This, they said, was done to discourage players from using the sites ahead of them ceasing operations.
Chanced, Chumba, DingDingDing, Fliff, Fortune Coins, Fortune Wheelz, Funrize, FunzCity, Global Poker and Golden Hearts Games have been flagged, in addition to High 5 Casino, Jackpota, Luckyland, McLuck, Mega Bonanza, NoLimitCoins, Play Fame, RealPrize and Sidepot.
SpinBlitz, Sportzino, SweepSlots, Sweeptastic, TaoFortune, Yay Casino and Zula Casino were also flagged.
“Online sweepstakes casinos are illegal, dangerous and can seriously ruin people’s finances,” James said. “I thank the Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”
Commission chair blasts ‘unscrupulous’ casinos
Commission Chairman Brian O’Dwyer said online sweepstakes games are “unscrupulous, unsecure and unlawful”.
“I have been very vocal about the need to crack down on these operations,” O’Dwyer said. “I am thrilled the attorney general has taken this significant step to eradicate the illegal gambling market. We encourage those of age who wish to gamble to do so with legal operators.”
Senator Addabbo added: “At a time when illegal gambling, underage participation and identity theft are soaring, it is deeply concerning that prohibited, unregulated and unenforceable gambling entities are providing easy access to illegal gaming sites and obtaining personal information of unsuspecting New Yorkers.
“These sweepstakes casinos put individuals at risk of fraud and financial exploitation. They also create dangerous pathways for gambling addiction, especially among minors. This is not about taking away anyone’s livelihood, it’s about protecting New Yorkers and working toward a safer, regulated online gaming environment for age-appropriate individuals.”