New York State Attorney General Letitia James ranks as one of the most divisive state attorneys general in the country. On Friday, she acted against the most contentious online gaming sector in the unregulated gaming market.
On Friday, James instructed 26 websites she claims are illegal gambling operations to halt their business activities in the Empire State immediately. James’ Office of the Attorney General, in collaboration with the New York State Gaming Commission, found that the specified platforms were operating unregulated and thus illegal internet games of chance.
James argues that numerous websites disguise themselves as sweepstakes sites, similar to those that enable users to spin for complimentary prizes and discounts. However, the operators mentioned, according to James, utilize a virtual currency that can be exchanged for cash.
Sweeps, one of the more contentious changes in the U.S. unregulated gaming scene in recent times, frequently enable players to register and participate for free with a supply of free coins. Once those coins are depleted, players can buy an alternative token that can be exchanged for cash.
“Sweepstakes casinos allow users to play traditional casino games, including slot machines, blackjack, and sports betting, using virtual sweepstakes coins that can be redeemed for cash or prizes, such as Amazon gift cards. Players typically purchase these virtual sweepstakes coins as part of a package with other virtual currency. Under New York law, betting cash-redeemable virtual coins on games of chance constitutes gambling, regardless of how the casino operator characterizes how players can obtain the virtual coins,” James’ office explained.
James is renowned, or infamous, depending on one’s political perspective, for initiating a civil lawsuit against Donald Trump that led to penalties amounting to hundreds of millions of dollars, although the lengthy case remains under appeal.
Cleaning Out Brooms
James’ extensive enforcement initiative encompasses numerous familiar participants and the most discussed platforms.
The 26 listed websites comprise industry leaders such as Chumba, Fortune Coins, Global Poker, High 5 Casino, and Luckyland. Additional sweeps featured in the Friday news include Chanced, DingDingDing, Fliff, Fortune Wheelz, Funrize, FunzCity, Golden Heart Games, Jackpota, McLuck, Mega Bonanza, No Limit Coins, Play Fame, Real Prize, Sidepot, Spin Blitz, Sportzino, Sweep Slots, Sweeptastic, Tao Fortune, Yay Casino, and Zula Casino.
James' letter directed the 26 platforms to cease the sale of sweepstakes coins immediately and revert to completely free-to-play and win social gaming activities. The attorney general of New York states that all 26 promptly complied.
"Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s lives,” James declared. “All 26 platforms are ending the sale of sweepstakes coins in New York.”
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” added New York State Gaming Commission Chairman Brian O’Dwyer. “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.”
James' letter stated that the arguments of the sweepstakes platforms asserting that virtual casino games are simply lawful sweepstakes are "without merit."
iGaming Continues to Be Prohibited in NY
New York hosts the wealthiest online sports wagering market in the U.S., with gamblers in the 2024-25 fiscal year wagering approximately $24 billion on college and professional sports. However, iGaming, which includes online slots and table games, is still not allowed.
Legal online casinos can only be found in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.