New York Attorney General halts 26 sweepstakes operations in the state

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New York Attorney General Letitia James has announced that her office has sent cease and desist letters to 26 online sweepstakes casinos operating in the state.

Sweepstakes casinos mimic real online casinos, except players play with virtual coins instead of real money. However, these coins can be purchased with real money and exchanged for cash prizes, explained Sen. Joseph P. Addabbo, Jr in a release.

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“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,” Addabbo said.

Currently, sweepstakes casinos do not have to apply for a gambling license, under the disputed premise that players do not wager with real money, given they cannot purchase a real-money stake. This means they do not undergo the normal stringent regulations required to receive a license and are thus unregulated.

However, under New York law, online platforms are prohibited from offering casino gambling that involves risking money and having the potential to win prizes of monetary value.

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

Addabbo has also introduced legislation, SB S5935A, to ban sweepstakes casinos from operating in the state.

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