New York Shuts Down 26 Sweepstakes Casinos, Mulls Legislative Ban

New York Attorney General Letitia James (D) last Friday announced her office sent cease-and-desist orders to a host of sweepstakes casino operators. 

James’ office and the New York State Gaming Commission worked in conjunction to identify and notify 26 online platforms they needed to cease operations in The Empire State. These platforms offered dual-currency gaming, including slot machines, table games, and sports betting.

Every operator that received a cease-and-desist shut down its sale of sweeps coins, which customers can purchase to access the platform’s games.

Cleaning up the marketplace

New York’s gaming laws prohibit online entities from offering games that involve tangible risk, which includes using paid-for coins in games that can win real-money prizes.

Sweepstakes casinos are not the same as traditional online casinos, which are also illegal in New York. Sweepstakes platforms don’t require but offer customers the chance to purchase sweep coins, which along with gift cards and cash, can be earned from playing and winning online games.

“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” Attorney General James said. “I thank the New York State Gaming Commission and Senator [Joseph] Addabbo (D-District 15) for partnering with my office on this issue to protect New Yorkers.”

The Attorney General’s office noted that sweepstakes platforms are not regulated like licensed betting platforms, such as legal sportsbooks or retail casinos. That opens customers up to potential fraud, playing against rigged odds, and a host of other safety issues. 

All of the following sweepstakes casinos are not out of commission in the Big Apple:

• 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

More changes, plus retail casinos coming

Dual-currency casinos are not explicitly banned by New York’s gaming laws. The recent sweep of cease-and-desists, a tactic used by many state regulators to control nefarious operators, has given lawmakers a reason to consider a change.

“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 Addabbo Jr.

Two pieces of legislation, New York Assembly Bill A6745 and Senate Bill S5935, would eradicate and ban sweepstakes casinos from the New York market. 

A6745, a companion to the Senate bill, was recently given a favorable opinion by the Assembly Committee on Codes and referred to the Assembly Ways and Means Committee. 

S5935, sponsored by Addabbo Jr., received unanimous approval from the New York Senate Racing, Gaming and Wagering Committee in March. It was amended on April 30 but has not made progress since. 

The sweepstakes clean-up is happening at the same time the state is preparing to meet its June 27 deadline for retail casino operator’s license applications. The date will mark the next chapter in a lengthy process that is expected to result in Gov. Kathy Hochul awarding licenses to three competitors, a list that includes New York Mets owner Steve Cohen, Jay-Z, and other influential businesspeople and gaming groups.