New York Attorney General Letitia James announced Friday that 26 cease-and-desist letters have been sent to operators offering online casino sweepstakes games to players in the state.
Key Takeaways
- All 26 platforms ending sale of sweepstakes coins in New York.
- Chumba, Fortune Coins, Global Poker, High 5 Casino, McLuck, Yay Casino among sites banned.
The statement acknowledged that a joint investigation conducted by the Office of the Attorney General (OAG) and the New York State Gaming Commission (NYSGC) identified 26 online gaming platforms offering slots, table games, and sports betting that use virtual coins, which can be redeemed for cash prizes.
While sweepstakes casinos offer the option to play with free coins that do not need to be purchased and cannot be redeemed, most of these sites enable, and even promote, the option of purchasing virtual currency that can be redeemed for gift vouchers and cash. As New York Laws prohibit online platforms from "offering gambling that involves risking something of value, including virtual coins that can be redeemed for cash prizes," the OAG determined that sweepstakes casinos are illegal in the state.
While sweepstakes casinos are not subject to audit, licensing, and other regulatory oversight as authorized gambling platforms, the OAG raised concerns about games being rigged and gambling-related risk being imposed on the public.
“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 partnering with my office on this issue to protect New Yorkers,” Attorney General James said.
More voices of support for banning sweepstakes
The Attorney General is not alone in her war on sweepstakes sites.
“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,” said New York Senator Joseph P. Addabbo.
NYSGC Chairman Brian O'Dwyer also echoed these worries.
“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,” he said.
Anticipating the Storm
Well-known sweepstakes brands, including Chumba, Fortune Coins, Global Poker, High 5 Casino, McLuck, Yay Casino, and others, were among the sites that received the cease-and-desist letters. However, the move didn’t come as a total surprise to some operators.
In May, Virtual Gaming Worlds, which owns Chumba Casino among other sites, announced it would exit the New York online casino market. The decision, which was announced prior to the recent cease-and-desist letters, followed a growing concern over sweepstakes’ legality among regulators in many U.S. states.
