New York Attorney General Letitia James has led a major crackdown that has an impact on 26 online platforms offering what officials consider illegal gambling through so-called sweepstakes casinos. These platforms allowed users to buy virtual coins and use them to play casino-style games with the chance to cash out winnings. They have now stopped operating in the state.
Unlicensed Sweepstakes Casinos Exposed for Risky Play, Forced to Exit New York Market
The Attorney General’s office teamed up with the New York State Gaming Commission to check out these websites. They found that these sites were breaking the law by letting people gamble with virtual money to win real cash or prizes.
In New York, any game where you can win something valuable, whether it is money or digital tokens you can trade in, counts as gambling. The state keeps a close eye on such operations. However, these sweepstakes-style sites were running without anyone watching them. This made people worry about whether the games were fair, if personal information was safe, and if players were being looked after.
Attorney General James highlighted the financial and mental risks of these platforms, pointing out their ability to run without checks or state oversight. She claimed that such settings could lead to addiction, push underage users to join, and create risks for scams. After her office sent stop orders, all 26 websites agreed to stop selling sweepstakes coins in New York.
Top Lawmakers Support Sweep of Illegal Gambling Sites Mimicking Real Casinos
State Gaming Commission Chairman Brian O’Dwyer backed the clampdown, calling the sweepstakes casinos misleading and outside the lines of legal gambling. He stressed that New Yorkers should gamble through licensed and regulated operators to make sure games are fair and users are safe.
Senator Joseph Addabbo Jr., who has championed responsible gambling laws for years, expressed worry about the possible exploitation of at-risk groups, especially young people. He pointed out that these platforms often had few barriers to entry, making them appealing but dangerous for casual users who might not see the risks.
The crackdown targeted several big names in the sweepstakes gaming world, including Chumba, Global Poker, Fortune Coins, and Luckyland. These sites offered free play through bonus tokens but pushed users to buy more virtual coins, which they could then exchange for real prizes, copying the setup of regular gambling.
Assemblywoman Carrie Woerner, who leads the legislative committee that oversees gambling rules, said the sweepstakes model has an influence on risky gambling habits among teens. She commended the Attorney General for acting to create a safer online gaming scene.