New York AG Shuts Down 26 Online Sweepstakes Casinos

New York Attorney General Letitia James has halted the operations of 26 online sweepstakes casinos that were offering gambling services in violation of state law. These platforms, which enabled s to play casino-style games and sports betting using virtual sweepstakes coins exchangeable for cash or prizes, were found to be operating without oversight or regulation.

In partnership with the New York State Gaming Commission (NYSGC), James’ office sent cease-and-desist letters to the operators, prompting all 26 platforms to discontinue their sweepstakes coin sales within New York.

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

NYSGC Chairman Brian O’Dwyer echoed that sentiment, stating, “These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful. 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.”

Legal Action and Legislative Backing

Under New York law, any platform offering games that involve risking something of value, including redeemable virtual currencies, is considered illegal gambling. These platforms were not subject to the state’s consumer protections, including game auditing, fair play standards, and identity safeguards.

State Senator Joseph Addabbo, a vocal critic of unregulated gaming, emphasized the risks posed by such platforms, especially to young people: “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.”

Assemblywoman Carrie Woerner, who chairs the Assembly’s Standing Committee on Racing and Wagering, also voiced for the crackdown. “These online sweepstakes games can serve as the on-ramp to problem gambling for teenagers, particularly,” she said.

The legislative response has been swift. The Assembly’s Ways and Means Committee recently ed Assembly Bill 6745, which prohibits online sweepstakes-style gaming, by a 35-0 vote. A companion Senate bill, SB5935 introduced by Addabbo, also seeks to ban dual-currency sweepstakes platforms and empower the gaming commission to determine which offerings fall under this category.

Industry Pushback and Compliance

The enforcement has drawn criticism from advocacy groups representing sweepstakes casino operators. The Social and Promotional Games Association called the action “disappointing,” claiming it misrepresents legal platforms and stifles innovation. The Social Gaming Leadership Alliance (SGLA), backed by VGW, also expressed a willingness to collaborate on more balanced regulations that protect both consumers and businesses.

Despite pushback, the following operators have complied with the AG’s orders: Chumba, Fliff, Fortune Coins, Global Poker, High 5 Casino, Luckyland, Sportzino, and others.

Consumers Urged to Avoid Unregulated Platforms

Attorney General James warned New Yorkers to avoid using sweepstakes casinos, citing the lack of regulatory oversight and the financial and privacy risks involved. These platforms allow s to buy virtual coins bundled with promotions, which can then be used to play games like slots and blackjack and be redeemed for items like gift cards or even cash.

Source:

“Attorney General James Stops Illegal Online Sweepstakes Casinos”, ag.ny.gov, Jun 6, 2025