Sweepstakes casinos have seemingly taken a battering recently with various states such as New Jersey and Montana looking to make the business model illegal. Now, New York is on a serious crackdown on these very establishments by closing 26 sweepstakes casino operations.
If you’re unsure as to what classes as a sweepstakes casino, they essentially allow players to partake in casino games using virtual currency but with a chance to win real cash. This specifically violates New York law.
New York Attorney General Letitia James led the closure of the aforementioned outfits after she found that they offered “players slots, table games, and sports betting using virtual coins that could be exchanged for cash and prizes.” Thankfully, all platforms have adhered to her cease and desist request.
New York State Gaming Commission Chairman Brian O’Dwyer suggested that he was “thrilled” about James’ efforts on the matter, encouraging “those of age who wish to gamble to do so with legal operators” instead of opting to go down shady avenues.
Potential dangers of sweepstakes casinos
Gambling laws are quite strict in New York and sweepstakes casinos have been seen as an easy entry point for those who are young, potentially under the legal age to gamble, and even the harvesting of their data for malicious purposes.
Senator Joseph P. Addabbo, Jr furthered this by saying that “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 and working toward a safer, regulated online gaming environment for age-appropriate individuals.”
As previously mentioned, sweepstakes casinos are falling like dominoes across US as more officials look to pass laws on banning the hard to regulate operations.
Whether there will be a full country-wide ban on these remains to be seen but the pool is certainly getting smaller and smaller as time goes on.
