NY AG’s Closure of Online Sweepstakes Casinos Not Left to Chance

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  • New York AG Letitia James sent cease-and-desist letters to 26 online sweepstakes casino platforms alleging that they engage in prohibited gambling activity.
  • In the letters, the AG demands that the virtual “sweepstakes casinos,” which offer slots, table games, and sports betting using virtual sweepstakes coins that users can purchase and redeem for cash and prizes, to cease illegal gambling activity. New York law prohibits online sweepstakes platforms from offering gambling, as they are not subject to the state audits and regulatory oversight that ensure games are not rigged.
  • The AG reports that the 26 platforms have agreed to end the sale of sweepstakes coins in New York.
  • We have previously covered a warning issued by Indiana AG Todd Rokita that unauthorized gambling websites are illegal and lack the consumer protections required for regulated online gaming companies.
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