Saying sweepstakes casinos put people at risk of fraud and financial exploitation, New York lawmakers are shutting down sweepstakes casinos in the state.
In a decisive move that she says is being done to protect New Yorkers across the state, Attorney General Letitia James' office, working with the New York State Gaming Commission, identified 26 online platforms offering players slots, table games, and sports betting using virtual coins that could be exchanged for cash and prizes.
She then announced the closure of all 26 online sweepstakes casinos, which she says were operating illegally within the state.
These platforms offered various casino games, where players could win virtual coins that were exchangeable for cash and prizes, thereby violating New York's gambling laws.
As a result, cease and desist letters were sent by Attorney General James, and the operators of the following sweepstakes casinos are ending the sale of sweepstakes coins 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
Attorney General James warns New York consumers to steer clear of sweepstakes casinos.
AG Calls Sweepstakes Casinos "Risky"
Online sweepstakes casinos have come under scrutiny for their lack of regulatory oversight.
Unlike licensed casinos, these platforms are not subject to audits, leaving players vulnerable to rigged games, unpaid winnings, and identity theft. New York law classifies using cash-redeemable virtual coins as gambling, and therefore, such activities are unlawful in the state.
Attorney General James stated, "Online sweepstakes casinos are illegal, dangerous, and can ruin people’s finances."
Similarly, New York State Gaming Commission Chairman Brian O’Dwyer praised the joint efforts to curb such illegal activities. He urged those interested in gambling to use legal and regulated avenues.
Calls for Stronger Regulations
Political figures, including Senator Joseph P. Addabbo, Jr. and Assemblywoman Carrie Woerner, voiced concerns over the dangers these illegal operations pose, especially to young individuals.
Senator Addabbo highlighted the risks of fraud, financial exploitation, and gambling addiction that these platforms create. He emphasized that legal action is about creating a safer gaming environment, not harming livelihoods.
“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 Sen. Addabbo, Jr.
Assemblywoman Woerner added that such games could lead teenagers to develop gambling problems, advocating for legal measures to prevent these risks.
“As Chair of the Assembly's Standing Committee on Racing and Wagering, my committee and I are deeply concerned about the prevalence of sweepstakes games, where players can redeem coins for money,” said Assemblywoman Woerner. “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 sweeping action by the Attorney General ensures New Yorkers are protected from these unlawful platforms.
Response from the Sweepstakes Industry
In response, the Social and Promotional Games Association (SPGA) expressed disappointment with Attorney General James' actions.
The SPGA claims its members operate lawfully, paying taxes and adhering to strict gaming practices. They argue that sweepstakes promotions, permitted under federal law, are being unfairly targeted without distinguishing between compliant and illegal operators.
The SPGA condemned the blanket enforcement, suggesting it hinders innovation and limits consumer choice. They have called for dialogue to modernize gaming laws rather than imposing overreaching measures on the industry.
This is not the first time the SPGA pushed back on New York lawmakers. The group recently expressed concerns over a recent amendment to New York Senate Bill S5935, which would ban online sweepstakes promotions. They even revised their strategy in an attempt to reason with lawmakers.
Louisiana is also on the verge of banning sweepstakes casinos. Senate Bill 181, which recently cleared both the Louisiana House and Senate unanimously, is one step away from becoming law. Montana has already banned them, while states like West Virginia, Connecticut, New Jersey, and Pennsylvania are discussing bills similar to the one in New York. But similar bills were recently rejected in Arkansas, Maryland, and Mississippi.
The SPGA says it will remain committed to advocating for the millions of American adults who enjoy sweepstakes casino games.
