The New York Attorney General issued cease-and-desist notices to 26 sweepstakes operators, leading them to stop selling sweepstakes coins in New York. Legislation is being considered to ban dual-currency sweepstakes.
New York Attorney General Letitia James announced her office has halted operations of 26 sweepstakes casino operators in the state. The Office of the Attorney General, in collaboration with the New York State Gaming Commission, identified these online platforms offering dual-currency sweepstakes games.
After receiving cease-and-desist notifications, each operator agreed to cease selling sweepstakes coins in New York.
NY AG: Online Sweepstakes Casinos Are Illegal
As per New York gaming law, online operations involving gambling by risking something of value, including virtual coins redeemable for cash or prizes, are prohibited. Sweepstakes casinos allow users to play traditional games using virtual coins, which can be won and exchanged for cash or prizes, like Amazon gift cards.
“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” said Attorney General James. “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 claims that these online casinos pose risks as they aren’t subject to audits and other state oversight to ensure fair play.
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, which operates Chumba, Luckyland, and Global Poker, announced it would stop selling sweepstakes coins in New York starting June 2.
“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,” stated Sen. Joseph P. Addabbo Jr. (D-15).
Legislation to Ban Sweepstakes Still Considered
Several legislative pieces are being considered to ban dual-currency gaming in the state. New York Assembly bill A6745, paired with Senate bill S5935, has moved through legislative stages seeking to prohibit dual-currency sweepstakes in the Empire State.
The Assembly bill A6745 officially bans online sweepstakes and revenue from illegal markets, proposing fines for operators or affiliates violating these rules.
The bill was introduced in March, referred to committees, and received a favorable report before moving to the Ways and Means committee.
The bill empowers the New York State Gaming Commission to define what constitutes a “dual-currency system of payment,” typically where a customer can purchase “sweepstakes coins” and redeem them for cash equivalents. The Senate counterpart, S5935, was moved out of committee in late April and awaits a Senate floor hearing.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com