26 Internet Casinos Provided Gamblers with Casino Games and Wagers on Sports Through Virtual Sweepstakes Coins Convertible to Cash and Awards

These sites used virtual coins that people could exchange for cash and prizes. New York law forbids online sites from running gambling that makes people risk something of value, even virtual coins that are changeable to cash or rewards. Online sweepstakes casinos don’t have audits or regular checks by the state to make sure the games aren’t rigged, which puts New Yorkers in danger. Attorney General James sent cease and desist letters to these platform operators, telling them to halt all gambling activities that are not allowed in the state. After this, all 26 platforms will stop selling sweepstakes coins in New York.

“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” said Attorney General James.

He explained that he has been very outspoken about cracking down on these services, and said he is thrilled Attorney General James has taken strong action to eliminate illegal gambling. He said people who are old enough and want to gamble should choose legal operators only. “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 Senator Joseph P. Addabbo, Jr.

Crackdown on Sweepstakes Casinos: Protecting New Yorkers from Gambling Risks and Scams

He said these sweepstakes casinos not only put people at risk for scams and financial harm, but they also create a pathway to gambling addiction, especially for teenagers. According to him, it’s not about taking anyone’s livelihood, but of keeping New Yorkers safe and aiming for a more regulated online gaming world for adults. He praised Attorney General James and her office for their effort to protect local people and recognised the immediate dangers from these illegal platforms.

She said she is grateful for the work of Attorney General James and her team for shutting down 26 of these games. Sweepstakes casinos let players use traditional casino games like slot machines, blackjack, and sports betting with sweepstakes coins as bets—coins that could become cash or prizes such as Amazon gift cards. People usually buy these virtual coins as part of a bundle with other digital currencies. New York law says that betting cash-redeemable virtual coins on games of chance is gambling, no matter how casino owners explain how players get the coins.

New York Cracks Down on Unregulated Sweepstakes Casinos to Protect Consumers

Placing wagers at sweepstakes casinos is risky because these places do not submit to state audits or control. Without supervision, users simply can’t know if a sweepstakes casino’s games are honest, if winnings will get paid, or if state-required consumer protection rules are followed, as legal casinos must. Attorney General James warns all New York consumers to stay away from sweepstakes casinos.

Due to her cease and desist letters, these platforms are ending sweepstakes coin sales 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.

If you or someone that you know is in need of assistance for problem gambling, assistance and support are available through New York State’s Office of Addiction Services and Support. Anyone who is seeking help can call New York’s free and confidential HOPEline, which is open seven days a week, at 1-877-8-HOPENY (1-877-846-7369) or text HOPENY (467369).

They worked under Deputy Bureau Chief Clark Russell and Bureau Chief Kim Berger of the Bureau of Internet and Technology. The Bureau of Internet and Technology is part of the Division for Economic Justice, run by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.