New York Attorney General Letitia James and the New York State Gaming Commission have escalated efforts against what they deem illegal online sweepstakes
New York Attorney General Letitia James and the New York State Gaming Commission have escalated efforts against what they deem illegal online sweepstakes casinos, issuing cease-and-desist letters to 26 operators. This significant crackdown aims to halt activities that authorities assert violate state gambling laws and pose considerable risks to New Yorkers’ finances and well-being.
The Office of the Attorney General (OAG) and the New York State Gaming Commission jointly identified numerous websites offering what they characterise as online casino games, including slots, table games, and even sports betting, through the use of virtual sweepstakes coins redeemable for cash or prizes. Authorities emphasize that despite the operators’ characterisation of these virtual coins, their use in games for cash or prizes still constitutes illegal online casino gaming under New York law. Online casinos are not currently legal in the state, and internet sports betting is only permitted through specifically approved and regulated operators. New York law also expressly prohibits gambling online with non-cash items, such as virtual coins, for cash or prizes. As such, all 26 sites flagged in the investigation were deemed to be operating illegally, prompting the issuance of cease-and-desist letters. State Senator Joseph Addabbo has publicly expressed support for the OAG and the Commission in this enforcement action.
The OAG and the Commission publicly named all the sweepstakes casino brands targeted in their investigation. This disclosure, they stated, was intended to discourage players from using the sites as they prepare to cease operations in New York. The list of implicated brands includes:
Attorney General Letitia James commented on the action, stating, as reported by iGaming Times, that “Online sweepstakes casinos are illegal, dangerous and can seriously ruin people’s finances.” She also extended thanks to the Commission and Senator Addabbo for their partnership in this initiative to protect New Yorkers.
Commission Chairman Brian O’Dwyer reinforced the strong stance against these operations. As reported by iGaming Times, O’Dwyer described online sweepstakes games as “unscrupulous, unsecure and unlawful.” He stated, as reported by iGaming Times, that he has been “very vocal about the need to crack down on these operations” and is “thrilled the Attorney General has taken this significant step to eradicate the illegal gambling market,” encouraging those of legal age who wish to gamble to do so with legal operators.
Senator Joseph Addabbo, a prominent figure in New York’s gambling legislation, also weighed in on the issue. As reported by iGaming Times, Addabbo expressed deep concern that “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.” He further emphasised, as reported by iGaming Times, that “These sweepstakes casinos put individuals at risk of fraud and financial exploitation. They also create dangerous pathways for gambling addiction, especially among minors.” Addabbo clarified that this action is not about removing anyone’s livelihood but rather about protecting New Yorkers and working toward a safer, regulated online gaming environment for age-appropriate individuals.
The swift action by the Attorney General and the Gaming Commission underscores a concerted effort to enforce New York’s gambling laws and channel consumers towards regulated, safer gaming options. This also aligns with broader national efforts in several US states to address the proliferation of sweepstakes casino models.
