New York Attorney General Letitia James has warned New Yorkers to steer clear of online sweepstakes casinos after revealing that 26 operators were issued cease-and-desist orders in March for violating the state’s gambling laws.
Working in conjunction with the New York State Gaming Commission, the Office of the Attorney General (OAG) identified a significant number of online platforms offering slots, table games and sports betting using virtual coins that could be exchanged for cash and prizes.
Cease-and-desist letters were sent to the operators of these platforms in March, demanding that they stop all prohibited gambling activity in the state by the end of that month.
Under New York law, online platforms are prohibited from offering gambling services that risk the player losing something of value, such as virtual coins that can be redeemed for cash or prizes, such as Amazon gift cards. Players typically purchase these virtual sweepstakes coins as part of a package with other virtual currency.
The Attorney General said that online sweepstakes casinos put New Yorkers at risk as they are not subject to audits and other regulatory oversight by the state to ensure that games are not rigged.
“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” said Attorney General James in a statement on Friday. “I thank the New York State Gaming Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”
Brian O’Dwyer, chairman of the New York State Gaming Commission, said: “These so-called sweepstakes games are unscrupulous, unsecure, and unlawful. I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James 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 Joseph Addabbo Jr commented: “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 so-called sweepstakes casinos not only put individuals at risk of fraud and financial exploitation, but 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.”
Assemblywoman Carrie Woerner added: “As chair of the Assembly’s Standing Committee on Racing and Wagering, I and my committee are deeply concerned about the prevalence of sweepstakes games, where players can redeem coins for money. These online sweepstakes games can serve as the on-ramp to problem gambling for teenagers, particularly. I am grateful for the work of Attorney General James and her staff for shutting down 26 of these games.”
The sweepstakes casinos impacted by the enforcement action were: Chanced, Chumba, DingDingDing, Fliff, Fortune Coins, Fortune Wheelz, Funrize, FunzCity, Global Poker, Golden Hearts Games, High 5 Casino, Jackpot, Luckyland, McLuck, Mega Bonanza, NoLimitCoins, Play Fame, RealPrize, Sidepot, SpinBlitz, Sportzino, SweepSlots, Sweeptastic, TaoFortune, Yay Casino, and Zula Casino.