Illegal Casinos Masquerading as Sweepstakes Sent Desist Letters in New York
Posted on: June 6, 2025, 04:09h.
Last updated on: June 23, 2025, 08:06h.
- New York’s top legal officer has ordered sweepstakes casinos to stop selling digital currency
- NY AG Letitia James says 26 online sweeps casinos have complied with her order
- Sweeps are controversial gaming websites that allow players to gamble for real money
New York State Attorney General Letitia James is among the more polarizing state attorneys general in the nation. On Friday, she took action against the most controversial online gaming segment in the unregulated gaming industry.
On Friday, James ordered 26 websites she contends are illegal gambling outfits to immediately cease doing business within the Empire State. James’ Office of the Attorney General, working with the New York State Gaming Commission, determined that the named platforms were conducting unregulated and therefore prohibited games of chance via the internet.
James contends that many of the websites masquerade as sweepstakes platforms not unlike the many websites that allow consumers to spin for free prizes and discounts. But the named operators, James says, use a virtual currency that can be redeemed for cash.
Sweeps, among the more controversial developments in the U.S. unregulated gaming landscape in recent years, often allow players to sign up and play for free with an allotment of complimentary coins. However, once those coins run dry, players can purchase a secondary token that can be redeemed 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 famed, or notorious, depending on one’s side of the political aisle, for filing a civil lawsuit against Donald Trump that resulted in hundreds of millions of dollars in penalties, though the yearslong case continues to be appealed.
Sweeping Out Sweeps
James’ widespread sweeps crackdown includes many of the common players and most talked-about platforms.
The 26 named websites include market leaders like Chumba, Fortune Coins, Global Poker, High 5 Casino, and Luckyland. Other sweeps involved in the Friday news are 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 ordered the 26 platforms to immediately stop selling sweepstakes coins and return to 100% free-to-play and win social gaming operations. The New York attorney general says all 26 quickly 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 said the sweeps platforms’ arguments that virtual casino games are merely legal sweepstakes are “without merit.”
iGaming Remains Illegal in NY
New York is home to the richest online sports betting market in the United States, with bettors in the 2024-25 fiscal year risking about $24 billion on professional and college sports. iGaming, or online slots and table games, remains prohibited.
Legal online casinos are only available in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
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