New York AG Sends Cease and Desist Letters to Sweepstakes Casinos

On Friday, June 6, New York Attorney General Letitia James announced that her office had sent cease and desist letters to 26 sweepstakes casinos. 

According to the press release, the office, along 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.“

James and Lawmakers Comment

The press release sent from James’s office adds that “New York law prohibits online platforms from offering gambling that involves risking something of value, including virtual coins that can be redeemed for cash or prizes.”

James added comments of her own, stating, “Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” said James. “I thank the New York State Gaming Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”

New York State Gaming Commission Chairman Brian O’Dwyer added the following statement:

“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful. I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market. We encourage those of age who wish to gamble to do so with legal operators.”

Assemblywoman Carrie Woerner added comments, too: 

“As Chair of the Assembly's Standing Committee on Racing and Wagering, I and my committee are deeply concerned about the prevalence of sweepstakes games, where players can redeem coins for money. 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 Sweepstakes Casinos Hit With Cease and Desist Order

As mentioned, the cease and desist letters were sent to 26 sweepstakes casinos. 

The list of casinos not hit with an order would likely be smaller, but nonetheless, here are all of the sweepstakes casinos hit: Chumba, Fortune Coins, Global Poker, High 5 Casino, and Luckyland. Other sweeps involved in the Friday news are Chanced, DingDingDing, Fliff, Fortune Wheelz, Funrize, FunzCity, Golden Heart Games, Jackpota, McLuck, Mega Bonanza, No Limit Coins, Play Fame, Real Prize, Sidepot, Spin Blitz, Sportzino, Sweep Slots, Sweeptastic, Tao Fortune, Yay Casino, and Zula Casino.

In the letter, James ordered the sites to stop selling sweepstakes coins immediately and only offer 100% free-to-play games. 

VGW Pulls Out of New York

In May, Virtual Gaming Worlds (VGW), which owns and operates top sweepstakes casinos like Chumba Casino, Luckyland Slots, and Global Poker, announced that it would begin shutting down operations in New York in June and conclude in August. 

“Our valued players in New York will still be able to enjoy all their favorite free-to-play games using Gold Coins, and we are 100 percent focused on ensuring players are fully informed about the changes and that this transition is as smooth and seamless as possible,” a VGW spokesperson said.

This came before the 26 cease and desist letters, but came amid legislation such as Sen. Joseph Addabbo’s S5935 bill that would do away with sweepstakes casinos.