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Attorney General James Takes Down Illegal Sweepstakes Casinos

New York – In a bold move against online gambling, New York Attorney General Letitia James has halted 26 illegal sweepstakes casinos operating in the state. These platforms offered players slots, table games, and sports betting using virtual coins that could be exchanged for cash and prizes.

The Office of the Attorney General (OAG), collaborating with the New York State Gaming Commission, identified these online platforms as operating outside the legal framework. ‘Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,’ said Attorney General James.

New York law prohibits online platforms from offering gambling involving virtual coins that can be redeemed for cash or prizes. These sweepstakes casinos are not subject to state audits and oversight, posing significant risks to New Yorkers.

Attorney General James sent cease and desist letters to the operators of these platforms, demanding an immediate halt to all prohibited gambling activity. As a result, all 26 platforms have ceased selling sweepstakes coins in New York.

New York State Gaming Commission Chairman Brian O’Dwyer echoed the concerns, ‘These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful.’ Senator Joseph P. Addabbo, Jr., added, ‘These illegal platforms not only put individuals at risk of fraud but also create dangerous pathways for gambling addiction among minors.

Assemblywoman Carrie Woerner highlighted the risks associated with sweepstakes games, ‘These online sweepstakes games can serve as the on-ramp to problem gambling for teenagers.’ The crackdown is a significant step towards creating a safer, regulated online gaming environment in New York.

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