Add Sweepstakes Casino Controversy - And Celebrities' All-important Role
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<br>The smiling faces of Paris Hilton and Ryan Seacrest made surprise looks before the Louisiana Senate for Friday's hearing on [prohibited](https://tripta.social/read-blog/1306_missouri-sports-betting-ballot-measure-approved-by-voters.html) gaming.<br>
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<br>No, they weren't personally in participation, however the world-famous celebrities were conspicuously consisted of in a slide discussion on social and sweepstakes gambling [establishments](https://comunidadebrasilbr.com/read-blog/14356_the-ins-and-outs-of-betting-on-the-nfl-draft.html) - the questionable websites providing both complimentary casino-style games and profitable prizes, such as money, gift cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anyone can 'play for totally free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>
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<br>The sites are just 2 cogs in the multibillion-dollar industry that now discovers itself besieged by suits. In the eyes of lots of gaming corporations, not to point out suit plaintiffs and state regulators, sweepstakes casinos act as standard casinos, only without the oversight, consumer defenses and tax laws. So not just can they [prevent](https://lovn1world.com/read-blog/2332_why-every-cricket-fan-ought-to-try-the-all-cricket-id-gaming-platform.html) the steep 24-percent federal [sports betting](https://www.etymologiewebsite.nl/wiki/Gebruiker:LourdesMoen4) levy, but sweepstakes operators aren't subject to regulative obstacles like anti-money laundering and responsible-gaming securities.<br>
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<br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in revenue last year alone. Now the company faces allegations of prohibited [sports betting](https://sportstalkhub.com/read-blog/21417_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) in a New york city suit that declares VGW utilizes star endorsers to 'create a veneer of legitimacy' around its product. (See VGW's declaration listed below)<br>
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<br>'I'm uncertain" if you don't trust us, you can trust Paris Hilton" is a winning message for business running multibillion-dollar prohibited operations out of locations like Malta, Isle of Man, or US mail drops,' Friday's presenter, Howard Glaser of video gaming corporation Light & Wonder, told DailyMail.com.<br>
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<br>Sweepstakes endorsers consist of a [variety](https://18plus.fun/read-blog/36_the-history-of-the-nfl-and-how-to-bank-on-it.html) of celebs from gambling enthusiasts Drake and DJ Khaled to swimmer Michael Phelps, as well as NBA stars Karl-Anthony Towns and Paul George - none of whom provide any differences between conventional gambling and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, among numerous sweepstakes gambling establishments found online<br>
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<br>Ryan Seacrest advises fans to play at Chumba Casino, where lots of - but not all - games are totally free<br>
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<br>Drake has an offer with social sweeps gambling establishment, Stake, that he regularly touts on social media<br>
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<br>Find out more<br>
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<br>Donald Trump 'set to name NBA team owner as US ambassador to Italy'<br>
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<br>Instead, ads normally center around the social aspect of the casinos, while leaving out the potential for real [sports betting](https://doum.cn/read-blog/2194_enhance-your-business-opportunities-with-efficient-sports-apps.html) losses.<br>
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<br>Others lure customers with pledges of rewards. One such operator, Stake, ran a social networks ad displaying Drake's cars, planes and estates before rotating to video footage of the rap artist playing online casino-style video games.<br>
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<br>'Daddy, why do we have so much cash?' read the very first caption on the screen.<br>
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<br>Another caption discussed: 'Because I never provided up.'<br>
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<br>The disparity between gambling sites and social or sweepstakes gambling establishments is a bit complex, but [operators](https://terra.planetv.wtf/read-blog/698_.html) of the latter insist they're not involved with the previous.<br>
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<br>A spokesperson for a market trade group, the Social and Promotional Gaming Association (SPGA), explained its members are not in direct competition with online gambling establishments and sportsbooks. Furthermore, according to SPGA data, the majority of the players on social-sweepstakes casinos are playing for totally free.<br>
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<br>'Most social sweeps consumers never ever purchase,' the SPGA representative told DailyMail.com. 'The minority of clients who make purchases do so in quantities far smaller sized than the normal deposit or wager size at real-money online gambling websites.'<br>
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<br>Social gambling [establishments](https://southwales.com/read-blog/139_start-off-winning-with-pcg-college-football-picks.html) use consumers a chance to play casino-style games with pals. Players have the choice to purchase worthless currency typically described as 'gold coins,' which can not be exchanged for genuine money, however can be utilized to open different functions within the games.<br>
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<br>But within the world of social gambling establishments exists sweepstakes gaming, enabling consumers to get other currency called 'sweeps coins' that can be exchanged for money or other rewards.<br>
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<br>And therein lies the potential for monetary losses, like the ones declared by complainants in Florida, Georgia, New Jersey and New York. One player informed the Washington Post he lost more than $100,000 on sweepstakes casinos in the past year after continuing to purchase more coins in pursuit of money and other things of worth.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>The Philadelphia 76ers' Paul George is seen promoting a Global Poker occasion<br>
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<br>Social sweeps casino Stake ran an ad showing off Drake's automobiles, aircrafts and mansions<br>
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<br>Karl-Anthony Towns of the New York City Knicks is another NBA star plugging VGW's Global Poker<br>
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<br>Traditional online gambling establishments are prohibited in all however 7 states, which has helped to sustain the appeal of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes websites, which don't require typically need identification. However, sites like Chumba will request IDs from gamers attempting to withdraw any funds.<br>
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<br>Many websites, like the crypto-compatible Stake, allow customers to send mail-in demands for totally free sweeps coins, offered the players follow painfully specific directions. What's more, players are typically rewarded with sweeps coins simply for registering, therefore providing a reason to attempt their hands at any variety of casino video games for an opportunity to win - or lose - genuine cash.<br>
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<br>So why are sweepstakes sites permitted to run in 48 states, while online casinos are banned in all however 7?<br>
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<br>According to the stakeholders, their product is the complimentary casino-style gaming, and the real-stakes competition is just a means of promoting their bread and butter.<br>
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<br>'Social sweepstakes video games are merely a type of online entertainment,' an SPGA spokesperson [informed DailyMail](https://www.womplaz.com/read-blog/89_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html).com by email. 'No purchase is needed to dip into social casinos with sweepstakes prizes. Consumers never ever have to pay for an opportunity to win rewards. That lack of a purchase requirement - or" consideration" - is a vital distinction in between social sweeps and standard online gaming sites like gambling establishments.'<br>
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<br>Think of the way that McDonald's utilizes its annual Monopoly game to promote its food: Customers aren't paying to gamble, but rather they're buying hamburgers and fries that provide them the opportunity to win lucrative prizes, such as a $1 million jackpot.<br>
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<br>And without a purchase requirement, or 'consideration', the game itself doesn't meet the definition of [sports betting](https://bigtoc.com/read-blog/8966_things-you-need-to-understand-about-rafting-adventures.html) in the US.<br>
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<br>'Sweepstakes are an enduring approach for promoting all kinds of [everyday companies](https://bytes-the-dust.com/index.php/User:JimJenkinson549) in the United States, whatever from burgers to publication memberships to coffee and home enhancement shops,' the SPGA spokesperson informed DailyMail.com. 'Sweepstakes promos are routinely utilized by a who's who of household names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'<br>
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<br>But to many [sports betting](https://learn.ivlc.com/read-blog/67_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) industry insiders, that argument doesn't cut it.<br>
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<br>For starters, video gaming lawyer Daniel Wallach mentions, McDonald's Monopoly video game does not run indefinitely. Rather, it has a distinct start and end, consequently suggesting the sweepstakes is not the fast-food giant's primary item. Instead, the sweepstakes is being used to promote genuine products like french fries, shakes, and the Filet-O-Fish.<br>
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<br>'They do not last forever and they're generally not connected to casino-style games of chance,' Wallach told DailyMail.com. 'They're just cash giveaways.<br>
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<br>'The sweepstakes [gambling establishments] have none of the characteristics commonly associated with McDonald's-design sweepstakes promos,' Wallach continued. 'Besides running in eternity, the sweepstakes casinos provide" casino-like" payouts, usually 80 percent or more of profits, whereas the normal payment percentage for a momentary marketing sweepstakes is an unimportant share of the profits made by the company [usually less than one percent]'<br>
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<br>Wallach fasts to compare the online social sweeps gambling establishments to the internet cafes that emerged in Florida, providing consumers the possibility to play casino-style video games for genuine rewards. Many of those brick-and-mortar establishments have actually since been shuttered over claims of unlawful [sports betting](https://ifairy.world/read-blog/1567_just-how-much-are-americans-spending-on-sports-betting.html).<br>
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<br>DJ Khaled is amongst a number of celeb spokespeople for VGW's Global Poker brand<br>
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<br>Now, Wallach argues, [social sweeps](https://namesdev.com/read-blog/15196_the-ins-and-outs-of-betting-on-the-nfl-draft.html) [gambling establishments](https://sfqatest.sociofans.com/read-blog/673_warner-bros-discovery-sets-stage-for-potential-cable-deal-by.html) must deal with comparable examination.<br>
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<br>'These differences are not arbitrary,' Wallach said of social sweeps casinos. 'They have actually consistently been mentioned by courts and state chief law officer as key factors in determining that a sweepstakes promotion remained in truth a guise for unlawful gambling.'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>One of the gambling establishment industry's leading trade organizations, the American Gaming Association, is now pressing lawmakers to examine sweepstakes operators and, in many cases, enact brand-new legislation on the concern.<br>
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<br>'Consumers are being denied of protections and states are giving up significant tax and income opportunities as this [sports betting](https://social.japrime.id/read-blog/23437_sport-betting-industry-looks-to-protect-itself.html) replaces that conducted through managed channels,' read a well-circulated AGA memo.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>And after that there are the complainants who have actually sued social gambling establishments in more than a lots states.<br>
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<br>Sweepstakes gambling establishment operators paid a combined $14.2 million in 4 different cases in Kentucky without admitting any misbehavior, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action suit, stating the settlement was made to prevent legal expenses and continued litigation.<br>
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<br>Michael Phelps has actually signed an offer with the VGW Group, which owns Global Poker<br>
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<br>In the most recent suit, which is largely comparable to its predecessors, New York state residents Lamar Prater and Rebecca Pratt both declare to have lost well over $1,000 to VGW, which is described in the filing as an 'unlawful [sports betting](https://bbarlock.com/index.php/User:KristyMcDavid9) enterprise. '<br>
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<br>Apple and Google have likewise been named as accuseds in suits for hosting the sweepstakes sites. But unlike VGW, neither tech business reacted to [DailyMail.com's](https://valetinowiki.racing/wiki/User:Raymond41Y) demand for remark.<br>
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<br>'We usually do not discuss matters before the courts,' a VGW spokesperson told DailyMail.com through e-mail. 'However, we note that this claim has actually only simply been submitted with the court and VGW has not been formally served.<br>
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<br>'We have full confidence in our compliance with all laws and policies where we operate, and stay positive about the future,' the spokesperson continued. 'We continue to offer our free-to-play games throughout many of The United States and Canada, as we have for more than a years, developing not only excellent video games, user experiences and home entertainment, however also ensuring this is done safely, properly and at the greatest level of requirements.<br>
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<br>'More broadly, we 'd restate that class actions and other lawsuits and arbitrations are reasonably typical across the online social video games industry (and the US more broadly), and our standard practice is that we intend to strongly safeguard any claim which might be brought versus us.'<br>
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<br>The issues in between standard online gambling and sweepstakes casinos could show troublesome for some star endorsers.<br>
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<br>Towns, a star center with the Knicks, and the 76ers' George both back VGW's Global Poker brand while the NBA is partnered with conventional video gaming titans like FanDuel and DraftKings.<br>
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<br>'It's paradoxical that expert athletes are hawking illegal [sports betting](https://www.heesah.com/read-blog/2081_how-to-withdraw-from-bet9ja-8-step-guide-to-cash-in-your-wins.html) 'sweeps' sites while at the same time the leagues desire to predict a strong stance versus illegal gaming - especially when attempting to tamp down the periodic [sports betting](https://devnew.judefly.com/index.php?link1=read-blog&id=3248_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) scandal,' Glaser told DailyMail.com.<br>
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<br>It was just eight months ago that [Toronto Raptors](https://connectingsparks.com/read-blog/25052_things-you-need-to-know-about-rafting-adventures.html) forward Jontay Porter received a life time restriction from the NBA over accusations he conspired with bettors. However, to be clear, Porter's scandal is unassociated to anything involving social or sweepstakes casinos.<br>
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<br>Together with VGW, Apple and Google are being sued for hosting allegedly prohibited gambling websites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a major issue for leagues such as the NBA.<br>
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<br>'I 'd expect that a league crackdown on athletes endorsing sweepstakes websites refers when, not if,' Glaser added.<br>
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<br>Neither an NBA spokesperson nor the players' agents responded to DailyMail.com's requests for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, [Seacrest](https://sundaycareers.com/read-blog/2628_start-winning-with-pcg-college-football-picks.html) and Phelps likewise disregarded to react to DailyMail.com e-mails.<br>
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<br>Asked if their star endorsers have a responsibility to discuss to customers the differences and resemblances between iGaming and sweepstakes casinos, VGW firmly insisted there is nothing more that requires to be done.<br>
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<br>'We have complete self-confidence in our influencer and ambassadorial partnerships, and our service practices more broadly,' the representative stated. 'Some of our worths are" our gamers come first" and" we do what's right", and we put our worths at the core of everything we do.'<br>
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<br>Glaser, an outspoken opponent of sweepstakes sites, sees things in a different way.<br>
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<br>'Celebrities who provide their names to shady illegal gaming sites are, at a minimum, putting their reputations at danger as well as courting civil and class actions by customers who allege harm,' Glaser stated. 'There is also some threat that state regulators and state attorney generals of the United States rope celebrity endorsers into enforcement efforts for gambling.'<br>
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