News Summary
New York authorities have issued cease-and-desist orders to 26 online sweepstakes casinos operating illegally in the state. This action, led by Attorney General Letitia James and the Gaming Commission, aims to combat unregulated gambling activities that present financial risks and compromise the integrity of lawful gaming. The investigation revealed that these sites promoted gambling practices through virtual coins, which violate state laws. Officials are encouraging residents to avoid these casinos and only engage with state-approved operators for safe gaming.
New York Cracks Down on Illegal Online Sweepstake Casinos
The New York Attorney General Letitia James, along with the New York State Gaming Commission, has issued cease-and-desist letters to 26 online sweepstakes casinos for operating illegally within the state. This action is part of a broader effort to combat the rise of unregulated gambling, which poses financial risks to individuals and could undermine the integrity of lawful gaming in New York.
The investigations led by the Office of the Attorney General (OAG) uncovered that the flagged websites were promoting a range of gambling activities, including slots, table games, and sports betting through the use of virtual sweepstakes coins. Although these coins could be redeemed for cash or prizes, their use in gambling falls outside the boundaries of New York law, which forbids any form of online casinos unless they are sanctioned by state regulations.
Under current New York laws, online casinos are strictly prohibited, and internet sports betting is only permitted via approved operators. Furthermore, legislation explicitly prohibits the use of non-cash items, like virtual coins, for gambling purposes involving cash prizes. The OAG determined that the operators’ claims regarding the use of virtual coins still amounted to casino gaming, which is illegal in New York.
Brands Targeted in the Investigation
The investigation identified several brands that are part of this illegal operation. Some of the notable sweepstakes casino brands that received cease-and-desist letters include:
- 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
- Zula Casino
Support for Regulatory Action
State Senator Joseph Addabbo expressed support for the measures taken by the OAG and the Gaming Commission. Concerns have been raised about the potential dangers associated with illegal online gambling operations, ranging from financial losses to risks of identity theft and underage participation. Commission Chairman Brian O’Dwyer has called these sweepstakes games “unscrupulous, unsecure, and unlawful” and has advocated for stringent regulatory actions to eliminate these illegal practices.
Attorney General James outlined the commitment of her office to safeguard New Yorkers from harmful gambling operations and financial exploitation. State officials reiterated the need for more robust regulations to ensure a safer gambling environment for all residents.
Cease-and-Desist Letters Issued
The cease-and-desist letters, dated back to March 7, provided the operators with a three-week window to cease their operations in New York. Despite this crackdown, it has been noted that some companies, such as Crown Coins, LuckyBird.io, and WOW Vegas, continue to list New York as a legitimate play location, raising further concerns about compliance with state laws.
As authorities continue to investigate and pursue illegal online gambling operations, residents are advised to stay clear of online sweepstakes casinos and to engage only with state-approved legal operators. This step is crucial in preventing financial loss and protecting the integrity of legalized gaming in New York.
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