• New York has sent a cease-and-desist letter to 26 sweepstakes casinos
• The AG argues that these websites have been operating illegally
• Lawmakers and the gambling regulator are determined to turf sweepstakes out

The noose tightens around the metaphorical necks of sweepstake casinos in New York after the Office of the Attorney General (OAG), in collaboration with the New York State Gaming Commission, sent cease-and-desist letters to 26 platforms using the sweepstakes model.

New York AG goes after 26 sweepstakes casinos

In an official statement, the OAG said that the platforms offered players slots, table games, and sports betting through the use of virtual coins that could later be traded in for cash and prizes, which went against state laws, the statement read. All platforms were named in the release:

• 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

Furthermore, the OAG insisted that sweepstakes casinos are not subject to any third-party audits or regulatory oversight, which exposed New Yorkers to risks, such as the games being rigged.

This is not the first time the Empire State has aimed at the sector; previously,VGW, a major sweepstakes casino, announced that it would be winding down its Sweepstakes Coins, the currency that can arguably be traded in for cash and prizes. The company said that it would retain itsGold Coins offer, which allows free gaming for

users. Commenting on the latest developments, Attorney General Letitia James outlined the way her office went about the latest operation against the sector, naming Senator Joseph Addabbo, a well-known critic of the vertical, as one of the people behind the latest push:

"These so-called ‘sweepstakes’ games are unscrupulous, insecure, and unlawful. I thank the New York State Gaming Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers."

This rhetoric has not gone unnoticed, however, with the Social and Promotional Games Association (SPGA) pushing back against the AG’s statement, and arguing that describing sweepstakes casinos as "illegal" and "dangerous" was in fact a mischaracterization.

"Our members operate within well-established legal frameworks, pay appropriate taxes, and adhere to a strict code of conduct that includes consumer protections and responsible gaming practices. Sweepstakes promotions are not gambling under federal law and are legally permitted in the overwhelming majority of U.S. states, including New York," the organization said in a statement, reminding the OAG of the current legal realities.

New Yorkers can be safer with sweepstakes on their way out, argues Sen. Addabbo

Sen. Addabbo, for his part, expressed gratitude to the OAG for acting so swiftly, noting that sweepstakes casinos put individuals at risk of fraud and financial exploitation.

"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," Sen Addabbo said, adding that he commended the OAG on its swift reaction.

The OAG has said that betting cash-redeemable virtual coins on games of chance is gambling for the purposes of state law.

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