New York Attorney General Letitia James has initiated a crackdown on 26 online sweepstakes casinos active in the state, claiming these platforms are providing illicit gambling activities that breach state regulations. This initiative comes after a thorough investigation conducted by the Office of the Attorney General (OAG), alongside the New York State Gaming Commission.
The implicated platforms facilitated access to slot machines, table games, and sports betting through virtual sweepstakes tokens that could be converted into cash or prizes, operating without the necessary oversight and regulation. As stated in New York law, any form of gambling involving the risk of valuable items, including redeemable virtual tokens, is deemed illegal if it is outside the state-sanctioned framework.
“Online sweepstakes casinos pose significant risks, are illegal, and can wreak havoc on individuals’ financial stability,” Attorney General James emphasized. Her office dispatched cease and desist notices to the operators, compelling all 26 platforms to halt the distribution of sweepstakes tokens within New York.
The sites allowed users to purchase virtual currency bundles featuring sweepstakes tokens, which could subsequently be utilized in games of chance and redeemed for cash or rewards like gift cards.
This enforcement action is part of a wider examination of sweepstakes-style gaming, which has been increasingly viewed as an alternative to conventional gambling sites. Unlike licensed casinos, sweepstakes gaming platforms lack audit requirements, consumer protection measures, and financial integrity checks, raising doubts about the fairness of the games and the legitimacy of winnings.
“These so-called ‘sweepstakes’ games are unethical, insecure, and illegal,” stated Brian O’Dwyer, Chairman of the New York State Gaming Commission. “I’ve consistently voiced the need to dismantle these operations, and I am pleased that Attorney General James has made this important move to eliminate the illegal gambling market. We advise individuals of legal age who wish to participate in gambling activities to engage only with licensed operators.”
Assemblywoman Woerner pointed out the dangers posed to younger users. “These online sweepstakes games can act as a gateway to problem gambling for teenagers,” she remarked. “I commend Attorney General James and her team for effectively shutting down these 26 platforms.”
Efforts to legislate prohibitions against these platforms are also in motion. State Senator Joseph P. Addabbo, Jr. introduced Senate Bill 5935 in March , while Assemblywoman Carrie Woerner has championed a related bill in the Assembly. Although these proposals have seen limited movement, the Attorney General’s enforcement actions may make further legislative measures unnecessary in the near future.
“Given the rise of illegal gambling, underage participation, and identity theft, it is alarming that unauthorized, unregulated gambling entities are providing straightforward access to illegal gaming sites while collecting personal data from unsuspecting New Yorkers,” Sen. Addabbo said.
“These so-called sweepstakes casinos not only expose individuals to potential fraud and financial harm, but they also pave hazardous paths towards gambling addiction, particularly among minors.”
Despite the crackdown, some platforms like Crown Coins, LuckyBird.io, and WOW Vegas still list New York as an available jurisdiction for operation, although their status may soon change. Officials advise consumers to thoroughly review terms and conditions and steer clear of unregulated services.
Making bets using sweepstakes tokens involves substantial risk, officials cautioned, particularly since players have no guarantees of fair play or prompt payouts. Attorney General James has urged all New Yorkers to completely avoid sweepstakes casinos.
The roster of platforms that have halted operations in New York following the cease and desist notifications includes 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, and Zula Casino.