New York Attorney General Hits Online Sweepstakes Casinos With Cease-and-Desist Orders
In a significant enforcement action, New York Attorney General Letitia James has issued cease-and-desist letters to 26 online sweepstakes casinos operating in the state. These platforms were offering slot-style games, table games, and even sports betting using virtual coins that could be redeemed for cash or prizes—a model that may violate New York’s strict gambling laws. With this, New York joined Connecticut, Louisiana and Montana who passed bills banning sweepstakes in the previous month.
As mentioned in the press release at the official Attorney State website, the operations were flagged for potentially running afoul of state law, which prohibits risking something of value on games of chance without proper licensing and oversight. According to the Attorney General’s Office, the use of redeemable virtual coins in these games constitutes gambling under New York law.
“Online sweepstakes casinos are dangerous and can seriously ruin people’s finances,” said Attorney General James, who emphasized the lack of consumer protections and regulatory oversight as a major concern. “I thank the New York State Gaming Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”
The New York State Gaming Commission, which collaborated on the investigation, warned that such unregulated gaming models pose risks ranging from rigged odds to identity theft.
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said Gaming Commission Chair Brian O’Dwyer. “We encourage those of age who wish to gamble to do so with legal operators.”
As a result of the cease and desist letters, the operators of the following sweepstakes casinos are ending the sale of sweepstakes coins in New York:
- Chanced
- Chumba
- DingDingDing
- Fliff
- Fortune Coins
- Fortune Wheelz
- Funrize
- FunzCity
- Global Poker
- Golden Hearts Games
- High 5 Casino
- Jackpota
- Luckyland
- McLuck
- Mega Bonanza
- NoLimitCoins
- Play Fame
- RealPrize
- Sidepot
- SpinBlitz
- Sportzino
- SweepSlots
- Sweeptastic
- TaoFortune
- Yay Casino
- Zula Casino
Sweepstakes casinos operate by allowing users to play traditional casino games—such as slot machines, blackjack, and even sports betting—using virtual sweepstakes coins. While these coins are often bundled with other forms of virtual currency, they can typically be redeemed for real-world prizes or cash equivalents, including gift cards from major retailers like Amazon.
This model has drawn regulatory scrutiny in New York, where state law defines gambling as risking something of value on games of chance. When virtual coins are exchangeable for cash or prizes, they fall under that legal definition—regardless of how operators market the coin packages or the games themselves.
What makes these sweepstakes platforms particularly risky, according to state officials, is the complete lack of regulatory oversight. Unlike licensed sportsbooks and online casinos approved by the New York State Gaming Commission, sweepstakes casinos are not subject to audits, fairness checks, or any form of consumer protection standards. This creates significant uncertainty for players: there’s no guarantee that games are fair, that payouts will be honored, or that personal and financial data is secure.
https://sportshandle.com/new-york-attorney-general-hits-online-sweepstakes-casinos-with-cease-and-desist-orders/