New York Attorney General Letitia James announced that 26 online sweepstakes casinos identified in the state have been ordered to shut down, following a joint investigation with the New York State Gaming Commission.
New York officials are not waiting for legislation to pass in order to rid the state of online sweepstakes casinos, as Attorney General Letitia James announced on Friday that all sweeps casinos have closed up shop in the Empire State.
According to a press release, the Office of the Attorney General, working in collaboration with the New York State Gaming Commission (NYSGC), identified 26 online platforms that offered sweeps gaming and issued cease-and-desist letters to those operators.
All 26, according to the Office of the Attorney General, will shut down in New York.
“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” James said in a statement. “I thank the New York State Gaming Commission and Senator [Joseph] Addabbo for partnering with my office on this issue to protect New Yorkers.”
Read more: SPGA’s response to New York’s announcement
NYSGC Chair: Sweeps casinos ‘unsecure’
As detailed in the press release, the Office of the Attorney Genral and the NYSGC concluded that 26 platforms offered titles resembling slots, table games and sports betting using virtual coins that could be exchanged for cash and prizes.
The release emphasized 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.”
What’s more, online sweepstakes casinos are not subject to audits and other regulatory oversight in New York, which would ensure that these games are not rigged, according to the release.
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” Brian O’Dwyer, chairman of the NYSGC, said in a statement. “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.”
Banning sweeps casinos about ‘protecting’ New Yorkers
Addabbo, whose Senate bill aimed to ban online sweepstakes casinos, echoed that “[t]hese 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.”
Asm. Carrie Woerner, chair of the Assembly’s Standing Committee on Racing and Wagering, noted the deep concern many lawmakers have regarding the prevalence of sweeps casinos.
That was no doubt a major reason why Addabbo introduced Senate Bill 5935 in early March, a proposal that has yet to be heard on the Senate floor. On the other side, legislators advanced Assembly Bill 6745 to be considered on the floor, a bill that contains similar language.
While lawmakers consider those bills, James and the NYSGC released the 26 online sweeps operators who will be ending their business in New York.
Online sweeps casinos were preparing for exit
Several online sweepstakes casinos had already made the decision to pull the plug in the Empire State, well before James made her announcement on Friday.
In late March, users on Reddit shared emails from several sweeps operators that indicated those casinos’ intentions of ending operations in New York by late April. That included groups like Hello Millions, SportsMillions, PlayFame, SpinBlitz, Rolling Riches and High 5 games.
Shortly after, one of the more established sweeps brands, Funzpoints, added New York to its list of excluded states.
Not to be outdone, VGW – which runs popular platforms like Chumba Casino, LuckyLand Slots and Global Poker – announced that it, too, would phase out the Empire State.
All of this is to say that James’ announcement on Friday certainly did not come as a surprise, but it no doubt sent a message about the state’s commitment to ridding online sweepstakes casinos.
