wtf?! NY Attorney General simply killed sweepstakes casinos

spindoctor99

spindoctor99

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Just saw the news that NY AG shut down 26 sweepstakes casino siets including some big onees. apparently they sent cease and desist letters claiming "dual currency gambling" is illegal
Chumba Casino, Luckyland Slots, and bunch of others getting booted from NY. some already shut down completely like PlayFame and Hello Millions
This is insane - these sites have been operating legally for years using the "no purchase necessary" sweepstakes model. now suddenly they're "illegal gambling"??
anyone else think this is just politicians trying to protect their licensed casino buddies? damn sweepstakes sites actually had better RTPs than most licensed places
 
mate this is what happened in UK few years back. regulators start "protecting consumers" (from free will, common sense and their money i guess) by shutting down anything that competes with their licensed oligopoly
sweepstakes model was brilliant - actually could win real money without depositing. now NY players forced to use shitty licensed sites with worse odds
 
im confused - weren't these the sites where you could play for free and still win money? how is that gambling if you dont have to pay anything
 
@Kayah technically you could get "sweeps coins" for free but most people bought gold coin packages that came with bonus sweeps coins. thats the "dual currency" thing they're targeting
the whole model was based on you buying one currency (gold coins) and getting the gambling currency (sweeps coins) as a "free bonus." clever legal workaround until now
honestly was better than most licensed sites. Chumba actually paid out wins instantly unlike some UK licensed places that take weeks
 
this fucked up tbh. was using luckyland slots for months, actually won £400 lately and they paid instantly to paypal. now they're "illegal"?? meanwhile bet365 takes 3 days to process withdrawals and their slots are rigged as hell with 94% rtp. but theyre "licensed" so its fine apparently. Letitia James just protecting her casino lobby friends. money leads folks as always
 
The regulators inconsistency is what gets me. These sites have been operating in the US for so long under established precedent, then suddenly it's "illegal"? Meanwhile actual predatory practices like loot boxes in video games that target kids are completely fine. Priorities seem backwards. Sweepstakes casinos at least had transparency about odds and payouts, plus the no-purchase requirement meant you couldn't technically "lose" money the same way.
 
so what happens to people who had money in these sites when they got shut down??
 
From what i read VGW is doing "structured exit". While other sites like PlayFame just shut down completely which is sketchy af if people had balances
 
the timing is sus af.. right when ny is trying to pass bill for licensed online casinos they suddenly decide sweepstakes are illegal. eliminate the competition first then force people into their overpriced licensed monopoly. same playbook everywhere :rolleyes:
had great run on high5 casino last month won $280 from their free spins. now its gone and im supposed to use some licensed site that takes 30% in taxes? fed up with this bs
 
had account that just disappeared overnight no warning or anything. had about $50 in sweeps coins just GONE
these shutdowns are fucked they should at least give people time to withdraw their balances not just vanish
 
this whole "dual currency" argument is weak sauce. McDonald's monopoly game uses same concept - buy food get monopoly pieces that can win prizes. gonna shut down mcdonalds too??
sweepstakes model actually protected players better than licensed sites cos you COULDN'T lose more than you chose to spend on gold coins even if you wanted to chase losses. licensed sites let you blow your entire bank account in minutes then claim "responsible gambling" warnings protect them
 
While the execution has been heavy-handed, the legal reasoning isn't entirely without merit. The "no purchase necessary" defense becomes questionable when the vast majority of revenue comes from players purchasing coin packages.
From a regulatory perspective, if you can spend real money and receive something of redeemable value in return based on chance outcomes, that meets the traditional definition of gambling regardless of the technical legal structure.
The issue is selective enforcement. These operators have been following established legal precedent for years. Changing the interpretation overnight without proper notice or transition period is problematic from a due process standpoint.
That said, the consumer protection concerns are valid. Many sweepstakes casinos operated with minimal oversight, no deposit protection schemes, and unclear redemption policies. The lack of regulatory framework did create risks for players.
The real solution would have been proper regulation rather than blanket prohibition, but that requires political will to create new frameworks rather than simply applying existing ones.
 
Bill raises important points about the regulatory complexity here. The sweepstakes casino model has always existed in a legal grey area that was bound to face scrutiny eventually.
From our perspective monitoring the industry, this enforcement action reflects broader regulatory tensions in the US market. State-by-state approaches to gambling regulation create inconsistencies where operators can be legal in one jurisdiction and illegal in another based on different interpretations of the same business model.

Key developments to understand:

Legislative pressure: Senate Bill S5935 by Senator Addabbo explicitly targets the "dual-currency system" model, defining it as unlawful gambling when virtual currency can be exchanged for cash prizes. This bill has already passed committee stage.

Enforcement coordination: The NY AG worked with the State Gaming Commission to identify and target specific operators. This wasn't a unilateral action but coordinated regulatory enforcement.

Industry response: The Social and Promotional Games Association (SPGA) has pushed back, arguing that blanket enforcement ignores distinctions between compliant operators and truly illegal gambling sites.

Broader implications: Multiple states (Connecticut, Louisiana, New Jersey) have introduced similar legislation. This appears to be a coordinated national effort rather than isolated state action.

Consumer impact: The abrupt enforcement has left players with limited options for redemption and unclear rights regarding existing balances.

What makes this particularly complex is that sweepstakes casinos operated under legal advice that their model was compliant. The sudden shift in enforcement interpretation raises due process concerns, especially for operators who invested significantly in compliance infrastructure.
The fundamental question remains whether these sites constitute gambling or promotional sweepstakes. Courts will likely need to provide definitive guidance, but meanwhile, the regulatory uncertainty creates risks for both operators and players.
For players affected by site closures, document all account balances and communication with operators. If redemptions are denied, you may have recourse through consumer protection agencies or class action litigation.
 
oh hell the coordinated nature across multiple states definitely suggests this isn't random enforcement huh
sounds like the gambling industry lobby finally got their act together to eliminate competition. cant have peasants winning money on unregulated sites when licensed casinos need to pay massive taxes and fees
 
predictable. casinos always bitched about sweepstakes sites "stealing" customers
the "consumer protection" angle is bullshit - its about eliminating competition before legalized online casinos launch. classic regulatory capture. oh and sweepstakes sites also had better customer service than most licensed places
 
anyone know which sites are still operating in NY? saw Wow Vegas and Crown Coins mentioned as still running
might be worth getting accounts there before they get shut down too. this crackdown probably just beginning
 
webzcas said:
anyone know which sites are still operating in NY? saw Wow Vegas and Crown Coins mentioned as still running
might be worth getting accounts there before they get shut down too. this crackdown probably just beginning
Click to expand...
@webzcas as i know crown coins still works but they'll probably be next. the writing is on the wall for all sweepstakes sites
honestly might be time to switch to crypto casinos. at least with bitcoin sites the government cant easily shut you down or freeze your money like they did with these sweepstakes places
 
checked and wow vegas still working for NY players but they removed most of their game providers. probably trying to stay under the radar. this whole situation is fucked. sweepstakes sites were actually innovative and player-friendly compared to traditional licensed casinos but innovation gets crushed by regulatory capture
 
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