New York officials have taken aim at sweepstakes-style online casinos that operate without regulation. A recent investigation flagged dozens of sites offering cash prizes through games that closely mimic gambling, and the state has now taken action to shut them down.
Good to know
- 26 sweepstakes casino operators received cease-and-desist letters in New York.
- State law prohibits using virtual coins that can be redeemed for cash prizes.
- Brands like Chumba, Fortune Coins, and Global Poker were among those targeted.
New York Attorney General Letitia James confirmed that 26 online gaming platforms have been told to stop serving state residents. These platforms, according to her office, were found offering slots, table games, and even sports betting using virtual currencies that could eventually be converted into cash or gift cards.
The action followed a joint investigation by the Office of the Attorney General (OAG) and the New York State Gaming Commission (NYSGC). Though many of these platforms advertise free play with coins that do not need to be purchased, they also promote options to buy virtual currency. Because New York law treats anything that can be redeemed for a cash prize as a thing of value, these games qualify as illegal gambling.
Sweepstakes casinos fall outside the state’s regulated gambling structure. They do not undergo licensing, financial audits, or player protection reviews. That raised major concerns for the Attorney General’s office, which warned about the potential for fraud and rigged gameplay.
“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” James said. She thanked both the NYSGC and Senator Joseph Addabbo for helping push forward efforts to protect New York residents.
Support for the crackdown came from across state leadership. Senator Addabbo criticized these platforms for offering easy access to gambling that targets young users and collects personal information without accountability.
“It is deeply concerning that prohibited, unregulated, and unenforceable gambling entities are providing easy access to illegal gaming sites,” he said.
NYSGC Chairman Brian O’Dwyer added that these games are “unscrupulous, unsecure, and unlawful,” and he backed the Attorney General’s move, calling it a meaningful step toward stopping illegal gambling.
Major brands affected by the enforcement action include Chumba, McLuck, Yay Casino, Fortune Coins, Global Poker, and High 5 Casino. Some had already taken steps to exit the New York market. In May, Virtual Gaming Worlds, which operates Chumba Casino, revealed it would stop offering its services in the state. That move came ahead of the cease-and-desist letters, driven by increasing legal pressure in multiple states.
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