- The New York Attorney General issued cease-and-desist orders to 26 sweepstakes operators.
- Consequently, these operators will stop selling sweepstakes coins in New York.
- Legislation in New York is being considered to ban dual-currency sweepstakes.
New York Attorney General Letitia James announced her office has shut down 26 sweepstakes casino operators in the state.
The Office of the Attorney General (OAG) and the New York State Gaming Commission identified 26 online platforms providing dual-currency sweepstakes games in the state.
The operators agreed to halt the sale of sweepstakes coins in the state after receiving cease-and-desist notices from Attorney General James.
NY AG: Online Sweepstakes Casinos Are Illegal
New York gaming law forbids online platforms from offering gambling involving risking something of value, like virtual coins redeemable for cash or prizes.
Sweepstakes casinos enable users to play traditional casino games, such as slots and blackjack, using virtual sweepstakes coins. Players buy these coins, which can be won and exchanged for cash or prizes like Amazon gift cards.
Attorney General James stated, “Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances. I thank the New York State Gaming Commission and Senator Addabbo for collaborating with my office to protect New Yorkers.”
The Attorney General’s office warns that online sweepstakes casinos are risky for New York customers since they are not subject to audits or state regulatory oversight to ensure fairness.
The following sweepstakes operators have agreed to stop selling 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
- Zula Casino
VGW, the operator of Chumba, Luckyland, and Global Poker, announced two weeks ago it would stop selling sweepstakes coins in New York starting June 2.
Sen. Joseph P. Addabbo Jr. expressed concerns about illegal gambling, underage participation, and identity theft, highlighting the issue of unregulated gambling entities accessing New Yorker’s personal data.
Legislation is still under consideration to fully ban dual-currency gaming in the state.
Legislation to Ban Sweepstakes Still Considered
New York lawmakers are considering several legislative measures to completely ban dual-currency gaming in the state.
New York Assembly bill A6745, alongside Senate bill S5935, received a favorable report from the Assembly Committee on Codes and was referred to the Assembly Ways and Means Committee. These bills aim to ban dual-currency sweepstakes games in New York.
Assembly bill A6745 officially prohibits online sweepstakes games and revenues from illegal markets, suggesting potential fines for operators or affiliates involved with the prohibited games.
Introduced in early March to the Assembly Racing and Wagering committee, the bill was later referred to the Codes committee in late April. After a month, it received a favorable report on May 28 and moved to the Ways and Means committee.
The bill empowers the New York State Gaming Commission to determine what constitutes a “dual-currency system of payment,” typically involving games where customers purchase “sweepstakes coins” and redeem them for cash equivalents.
The bill’s Senate counterpart, S5935, has moved out of committee and is awaiting a Senate floor hearing.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com