Attorney General James Stops Illegal Online Sweepstakes Casinos

NEW YORK – New York Attorney General Letitia James today announced that her office has stopped online sweepstakes casinos operating in New York. The Office of the Attorney General (OAG), working 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. 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. Online sweepstakes casinos are not subject to audits and other regulatory oversight by the state to ensure that games are not rigged, putting New Yorkers at risk. Attorney General James sent cease and desist letters to the operators of these platforms, demanding that they stop all prohibited gambling activity in the state, and as a result, all 26 platforms are ending the sale of sweepstakes coins in New York.

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

“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said New York State Gaming Commission Chairman Brian O’Dwyer. “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.”

“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 Senator Joseph P. Addabbo, Jr. “These so-called sweepstakes casinos not only put individuals at risk of fraud and financial exploitation, but they also create dangerous pathways for gambling addiction, especially among minors. This is not about taking away anyone's livelihood, it's about protecting New Yorkers and working toward a safer, regulated online gaming environment for age-appropriate individuals. I commend Attorney General James and her office for their dedication towards protecting our residents and for recognizing the urgent risks posed by these illegal platforms.”

“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,” said Assemblywoman Carrie Woerner. “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.”

Sweepstakes casinos allow users to play traditional casino games, including slot machines, blackjack, and sports betting, using virtual sweepstakes coins that can be redeemed for cash or prizes, such as Amazon gift cards. Players typically purchase these virtual sweepstakes coins as part of a package with other virtual currency. Under New York law, betting cash-redeemable virtual coins on games of chance constitutes gambling, regardless of how the casino operator characterizes how players can obtain the virtual coins.

Placing a bet at a sweepstakes casino is risky because sweepstakes casinos are not subject to audits and other regulatory oversight by the state. Without oversight, players have no way of knowing whether a sweepstakes casino’s games are rigged, whether it will be able to cover a winning bet, or whether it complies with the many other consumer protection measures required of legal, licensed casinos under New York law.  Attorney General James warns New York consumers to steer clear of sweepstakes casinos. 

As a result of the cease and desist letters sent by Attorney General James, the operators of the following sweepstakes casinos are ending the sale of sweepstakes coins in New York: 

• 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

For those seeking help with problem gambling, resources and support are available through New York State’s Office of Addiction Services and Support. Individuals seeking help can also call New York state’s free and confidential HOPEline, available 24/7, at 1-877-8- HOPENY (1-877-846-7369) or text HOPENY (467369).

This matter was handled by Assistant Attorney General Marc Montgomery and Senior Enforcement Counsel Jordan Adler and Legal Assistants Richard Borgia and Shirly Huang, under the supervision of Deputy Bureau Chief Clark Russell and Bureau Chief Kim Berger of the Bureau of Internet and Technology. The Bureau of Internet and Technology is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and overseen by First Deputy Attorney General Jennifer Levy.