There are 26 fewer sweepstakes casino and sports betting operators in New York after the state’s attorney general sent cease-and-desist notices.
The notices, announced in a late Friday news release, came from Atty. Gen. Letitia James as a way to stop “online sweepstakes casinos operating in New York.” The timeline of when the letters were sent to sweepstakes casinos was not given, though a copy of one letter attached to the press release was dated March 7 and gave three weeks to wrap up operations in the state.
“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” James said. “I thank the New York State Gaming Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”
Bills against sweepstakes in both chambers
There were bills in both the Senate and Assembly that sought to ban sweepstakes casinos. Sen. Joseph Addabbo told LSR earlier this year that sweepstakes operators had “gotten around a loophole.”
“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,” Sen. Addabbo said in Friday’s release. “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.
“I commend Attorney General James and her office for their dedication towards protecting our residents and for recognizing the urgent risks posed by these illegal platforms.”
Multiple states had anti-sweeps legislation of their own. So far, bills banning sweepstakes operations have passed the legislatures of Connecticut, Louisiana, Montana and Nevada.
Some sites still operating
Websites owned by VGW stopped distributing the in-game currency that can be swapped for real cash prizes on June 2.
But its three sites, Chumba, Global Poker and LuckyLand, will allow sweepstakes play to continue until Aug. 1.
VGW recently launched a trade group for sweepstakes operators, the Social Gaming Leadership Alliance. That launched months after the Social and Promotional Gaming Association went live.
SPGA responds
The SPGA denounced James’ “mischaracterization” of sweepstakes operators:
“The Social and Promotional Games Association (SPGA) is disappointed by the New York Attorney General Letitia James’ mischaracterization of legal sweepstakes platforms as ‘illegal’ and ‘dangerous.’ Our members operate within well-established legal frameworks, pay appropriate taxes, and adhere to a strict code of conduct that includes consumer protections and responsible gaming practices.
“Sweepstakes promotions are not gambling under federal law and are legally permitted in the overwhelming majority of U.S. states, including New York. Despite multiple attempts to engage directly with New York lawmakers and regulators, our outreach has gone ignored. Instead of working collaboratively to establish clear, modern rules for platforms that offer free-to-play games and do not require a purchase to win, the state has opted for overreach.”
Full list of sweepstakes sent C&Ds
The list of 26 includes some of the biggest brands in the sweepstakes industry:
- 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
