New York AG cracks down on 26 online sweepstakes casinos
New York State Senator Joseph Addabbo Advocates for Crackdown on Illicit Sweepstakes Casinos
In a decisive move to safeguard consumers, New York Attorney General Letitia James, alongside the New York State Gaming Commission, has issued cease-and-desist letters to 26 online sweepstakes casinos operating outside the law. This enforcement action highlights the ongoing efforts to regulate the gambling industry and protect players in the state.
The collaboration between the Office of the Attorney General (OAG) and the Gaming Commission revealed that these websites offer an array of games, including slots, table games, and sports betting. These sweepstakes casinos enable users to participate in gambling activities using virtual sweepstakes coins, which can be exchanged for cash or prizes—a model deemed illegal under current New York law.
As it stands, online casinos remain prohibited, and internet sports betting is permitted only through state-sanctioned operators. Furthermore, New York legislation explicitly forbids using non-cash items, such as virtual coins, for gambling transactions involving cash or prizes.
The OAG and commission asserted that the operators’ portrayal of players acquiring virtual coins for gambling purposes constitutes illegal online casino gaming. Consequently, all flagged websites have been classified as operating unlawfully, prompting the issuance of cease-and-desist letters. Senator Joseph Addabbo voiced his support for the actions taken by the OAG and the commission, emphasizing the importance of regulatory compliance in the gambling sector.
Which Websites Are Being Targeted in New York?
The OAG and commission publicly disclosed the identities of the sweepstakes casino brands targeted in their enforcement campaign. This transparency aims to dissuade players from engaging with these websites prior to their operations being halted.
Among the brands identified are Chanced, Chumba, DingDingDing, Fliff, Fortune Coins, Fortune Wheelz, Funrize, FunzCity, Global Poker, and Golden Hearts Games. Additional flagged names include High 5 Casino, Jackpota, Luckyland, McLuck, Mega Bonanza, NoLimitCoins, Play Fame, RealPrize, and Sidepot, along with SpinBlitz, Sportzino, SweepSlots, Sweeptastic, TaoFortune, Yay Casino, and Zula Casino.
“Online sweepstakes casinos are illegal, dangerous, and can lead to significant financial distress,” affirmed Attorney General James. “I extend my gratitude to the Commission and Senator Addabbo for their partnership in this initiative aimed at protecting New Yorkers.”
Commission Chair Condemns ‘Unscrupulous’ Casinos
Commission Chairman Brian O’Dwyer characterized online sweepstakes gaming as “unscrupulous, insecure, and unlawful.”
“I have consistently advocated for stringent measures against these operations,” stated O’Dwyer. “I am pleased that the Attorney General has taken this pivotal step to dismantle the illegal gambling ecosystem. We strongly encourage those of legal age wishing to gamble to engage only with licensed operators.”
Senator Addabbo added, “As illegal gambling, underage participation, and identity theft continue to rise, the implications of unregulated, prohibited entities providing access to illegal gaming sites are alarming. Such practices jeopardize the financial safety of unsuspecting New Yorkers.”
He further elaborated: “These sweepstakes casinos pose risks of fraud and financial exploitation while creating perilous avenues for gambling addiction, particularly among minors. This initiative is not about restricting livelihoods; rather, it focuses on safeguarding New Yorkers and promoting a regulated, secure online gaming environment for responsible adult players.”
In summary, the ongoing crackdown on illegal online gaming underscores a significant commitment by New York state authorities to advance consumer protection and maintain the integrity of the gambling industry.
