New York – The Office of the Attorney General (OAG) and the New York State Gaming Commission have halted the operations of 26 online sweepstakes casinos, according to a statement by New York Attorney General Letitia James.
Operating under the guise of legal ‘sweepstakes’ games, these platforms offered slots, table games, and sports betting using virtual coins redeemable for cash and prizes. The operation was flagged as illegal under New York law, which bans online gambling involving real money or its equivalent in virtual currency.
‘Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,’ James said. ‘We sent cease and desist letters to the operators, and they have all stopped selling sweepstakes coins in New York.’
The state gaming commission chairman, Brian O’Dwyer, echoed the sentiment: ‘These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful. We encourage those of age who wish to gamble to do so with legal operators.’
Senator Joseph P. Addabbo Jr. emphasized the risks of unregulated gambling platforms: ‘These casinos not only put individuals at risk of fraud and financial exploitation but also create dangerous pathways for gambling addiction, especially among minors. This is about protecting New Yorkers and working toward a safer online gaming environment.’
Assemblywoman Carrie Woerner highlighted the concerns over sweepstakes games serving as an on-ramp to problem gambling: ‘I am grateful for the work of Attorney General James in shutting down these illegal platforms to protect our residents from the urgent risks posed by unregulated gaming sites.’
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Key Facts
- State: New York
- Agency: NY AG
- Category: Fraud & Financial Crimes|Cybercrime|Public Corruption
- Source: Official Source ↗
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