Add Sweepstakes Casino Controversy - And Celebrities' All-important Role

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 <br>The smiling faces of  and Ryan Seacrest made surprise appearances before the Louisiana Senate for Friday's hearing on illegal gambling.<br>
 <br>No, they weren't personally in participation, but the world-famous stars were notably included in a slide presentation on social and sweepstakes casinos - the controversial sites offering both free casino-style video games and profitable prizes, such as money, gift cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'bet complimentary,' while a crop-topped Hilton holds a chip for [sweepstakes](https://oeclub.org/index.php/User:KUVSheree44960) operator, Wow Vegas, in the other.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>The sites are just two cogs in the multibillion-dollar market that now discovers itself besieged by lawsuits. In the eyes of numerous gaming corporations, not to mention claim complainants and state regulators, sweepstakes casinos act as traditional casinos, only without the oversight, customer protections and tax laws. So not only can they prevent the steep 24-percent federal [sports betting](https://mgnm.uk/read-blog/3125_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) levy, however sweepstakes operators aren't based on regulative difficulties like anti-money laundering and responsible-gaming defenses.<br>
 <br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in profits in 2015 alone. Now the company deals with accusations of illegal gaming in a New york city lawsuit that declares VGW uses celeb endorsers to 'create a veneer of authenticity' around its item. (See VGW's statement listed below)<br>
 <br>'I'm unsure" if you don't trust us, you can trust Paris Hilton" is a winning message for companies running multibillion-dollar prohibited operations out of places like Malta, Isle of Man, or US mail drops,' Friday's speaker, Howard Glaser of gaming corporation Light & Wonder, informed DailyMail.com.<br>
 <br>Sweepstakes endorsers include a variety of stars from [sports betting](https://aceme.ink/read-blog/1716_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html) lovers Drake and DJ Khaled to swimmer Michael Phelps, along with NBA stars Karl-Anthony Towns and Paul George - none of whom provide any distinctions between traditional gambling and sweepstakes play.<br>
 <br>Paris Hilton is seen plugging Wow Vegas, one of numerous sweepstakes casinos found online<br>
 <br>Ryan Seacrest advises fans to dip into Chumba Casino, where numerous - however not all - video games are free<br>
 <br>Drake has a deal with social sweeps casino, Stake, that he frequently touts on social networks<br>
 <br>Learn more<br>
 <br>Donald Trump 'set to call NBA team owner as US ambassador to Italy'<br>
 <br>Instead, ads usually center around the social element of the gambling establishments, while leaving out the potential for actual gambling losses.<br>
 <br>Others lure customers with guarantees of rewards. One such operator, Stake, ran a social media advertisement revealing off Drake's cars and trucks, planes and estates before pivoting to video of the rapper playing online casino-style games.<br>
 <br>'Daddy, why do we have so much cash?' read the first caption on the screen.<br>
 <br>Another caption discussed: 'Because I never ever provided up.'<br>
 <br>The discrepancy in between [sports betting](https://accc.rcec.sinica.edu.tw/mediawiki/index.php?title=User:MaryanneYsi) websites and social or sweepstakes casinos is a bit complicated, however operators of the latter insist they're not included with the former.<br>
 <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 casinos and sportsbooks. Furthermore, according to SPGA information, many of the players on social-sweepstakes gambling establishments are [sports betting](https://sfqatest.sociofans.com/read-blog/709_the-ins-and-outs-of-betting-on-the-nfl-draft.html) free.<br>
 <br>'Most social sweeps customers never ever buy,' the SPGA spokesperson informed DailyMail.com. 'The minority of customers who make purchases do so in quantities far smaller than the common deposit or wager size at real-money online [sports betting](https://uconnect.ae/read-blog/173434_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html) sites.'<br>
 <br>Social gambling establishments provide customers an opportunity to play casino-style video games with pals. Players have the option to purchase valueless currency typically described as 'gold coins,' which can not be exchanged genuine money, however can be utilized to open numerous features within the video games.<br>
 <br>But within the world of social gambling establishments exists sweepstakes gaming, permitting consumers to acquire other currency referred to as 'sweeps coins' that can be exchanged for money or other rewards.<br>
 <br>And therein lies the capacity for monetary losses, like the ones declared by [plaintiffs](https://usvs.ms/read-blog/806_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) in Florida, Georgia, New Jersey and New York City. One player informed the Washington Post he lost more than $100,000 on sweepstakes casinos in the previous year after continuing to [purchase](https://infinirealm.com/read-blog/8235_the-ins-and-outs-of-betting-on-the-nfl-draft.html) more coins in pursuit of cash and other things of value.<br>
 <br>The Philadelphia 76ers' Paul George is seen promoting an International Poker event<br>
 <br>Social sweeps casino Stake ran an ad showing off Drake's vehicles, aircrafts and estates<br>
 <br>Karl-Anthony Towns of the New York Knicks is another NBA star plugging VGW's Global Poker<br>
 <br>Traditional online casinos are banned in all however 7 states, which has actually helped to sustain the popularity of sweepstakes gambling establishments.<br>
 <br>Anyone over the age of 18 can access the sweepstakes sites, which don't need normally need recognition. However, websites like Chumba will request for IDs from players trying to withdraw any funds.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>Many sites, like the crypto-compatible Stake, permit clients to submit mail-in ask for complimentary sweeps coins, offered the players follow painfully specific guidelines. What's more, players are frequently rewarded with sweeps coins just for registering, thereby [providing](https://peoplesmedia.co/read-blog/13128_sport-betting-industry-aims-to-protect-itself.html) them a reason to try their hands at any variety of gambling establishment games for an opportunity to win - or lose - genuine cash.<br>
 <br>So why are sweepstakes websites enabled to run in 48 states, while online casinos are banned in all however 7?<br>
 <br>According to the stakeholders, their item is the free casino-style video gaming, and the real-stakes competition is merely a means of promoting their bread and butter.<br>
 <br>'Social sweepstakes games are merely a kind of online entertainment,' an SPGA representative informed DailyMail.com by e-mail. 'No purchase is needed to dip into social casinos with sweepstakes prizes. Consumers never have to spend for a chance to win rewards. That lack of a purchase requirement - or" consideration" - is an [essential difference](http://milkywaystars.site/read-blog/3029_compare-amp-review-oddsjet-de.html) between social sweeps and conventional online [sports betting](https://doomelang.com/read-blog/52994_sport-betting-industry-wants-to-protect-itself.html) websites like [gambling establishments](https://vibrantclubs.com/read-blog/11455_the-ins-and-outs-of-betting-on-the-nfl-draft.html).'<br>
 <br>Consider the manner in which McDonald's utilizes its yearly Monopoly video game to promote its food: Customers aren't paying to gamble, but rather they're purchasing hamburgers and fries that offer them the possibility to win rewarding prizes, such as a $1 million jackpot.<br>
 <br>And without a purchase requirement, or 'consideration', the video game itself doesn't meet the meaning of [sports betting](https://www.opentx.cz/index.php/U%C5%BEivatel:AbdulAtchley493) in the US.<br>
 <br>'Sweepstakes are a long-standing technique for promoting all type of daily businesses in the United States, whatever from burgers to magazine memberships to coffee and home enhancement stores,' the SPGA spokesperson told DailyMail.com. 'Sweepstakes promotions are routinely used by a who's who of family names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'<br>
 <br>But to lots of gambling market insiders, that argument does not cut it.<br>
 <br>For starters, gaming attorney Daniel Wallach points out, McDonald's Monopoly game doesn't run forever. Rather, it has a well-defined start and end, consequently recommending the sweepstakes is not the fast-food giant's main product. Instead, the sweepstakes is being utilized to promote genuine products like french fries, shakes, and the Filet-O-Fish.<br>
 <br>'They don't last permanently and they're normally not connected to casino-style video games of opportunity,' Wallach told DailyMail.com. 'They're just cash giveaways.<br>
 <br>'The sweepstakes [casinos] have none of the qualities commonly connected with McDonald's-style sweepstakes promos,' Wallach continued. 'Besides running in all time, the sweepstakes casinos offer" casino-like" payouts, normally 80 percent or more of earnings, whereas the common payment percentage for a temporary promotional sweepstakes is a trivial share of the profits earned by the company [normally less than one percent]'<br>
 <br>Wallach is quick to liken the online social sweeps casinos to the internet cafes that emerged in Florida, offering consumers the chance to play casino-style games for real prizes. A lot of those brick-and-mortar facilities have because been shuttered over claims of unlawful [sports betting](http://www.seferpanim.com/read-blog/358_sport-betting-industry-aims-to-protect-itself.html).<br>
 <br>DJ Khaled is amongst several celeb [spokespeople](https://bikapsul.com/read-blog/1483_things-you-need-to-understand-about-rafting-adventures.html) for VGW's Global Poker brand name<br>
 <br>Now, Wallach argues, social sweeps gambling establishments need to deal with similar examination.<br>
 <br>'These distinctions are not approximate,' Wallach said of social sweeps gambling establishments. 'They have repeatedly been mentioned by courts and state attorney generals as essential elements in identifying that a sweepstakes promo was in fact a guise for illegal gambling.'<br>
 <br>Among the casino industry's leading trade organizations, the American Gaming Association, is now pressing legislators to examine sweepstakes operators and, sometimes, enact new legislation on the issue.<br>
 <br>'Consumers are being deprived of protections and states are passing up substantial tax and earnings chances as this [sports betting](https://doum.cn/read-blog/2214_how-much-are-americans-spending-on-sports-betting.html) replaces that carried out through managed channels,' checked out a well-circulated AGA memo.<br>
 <br>And then there are the plaintiffs who have taken legal action against social gambling establishments in more than a lots states.<br>
 <br>Sweepstakes gambling establishment operators paid a combined $14.2 million in four separate cases in Kentucky without admitting any misbehavior, according to the Washington Post. Meanwhile VGW accepted pay $11.75 million in one class-action lawsuit, saying the settlement was made to avoid legal expenses and continued lawsuits.<br>
 <br>Michael Phelps has actually signed a deal with the VGW Group, which owns Global Poker<br>
 <br>In the newest claim, which is largely similar to its predecessors, New York state residents Lamar Prater and Rebecca Pratt both claim to have actually lost well over $1,000 to VGW, which is explained in the filing as an 'unlawful [sports betting](https://sfqatest.sociofans.com/read-blog/709_the-ins-and-outs-of-betting-on-the-nfl-draft.html) business. '<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>Apple and Google have actually also been called as accuseds in suits for hosting the sweepstakes websites. But unlike VGW, neither tech company reacted to DailyMail.com's ask for comment.<br>
 <br>'We generally don't discuss matters before the courts,' a VGW representative informed DailyMail.com via e-mail. 'However, we keep in mind that this claim has actually only simply been filed with the court and VGW has actually not been formally served.<br>
 <br>'We have complete confidence in our compliance with all laws and guidelines where we operate, and stay positive about the future,' the representative continued. 'We continue to provide our free-to-play video games across most of North America, as we have for more than a decade, producing not just fantastic video games, user experiences and entertainment, but likewise ensuring this is done securely, properly and at the highest level of requirements.<br>
 <br>'More broadly, we 'd restate that class actions and other lawsuits and arbitrations are reasonably typical throughout the online social video games industry (and the US more broadly), and our standard practice is that we mean to vigorously protect any claim which may be brought against us.'<br>
 <br>The problems between standard online [sports betting](http://bedfordfalls.live/read-blog/117122_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) and sweepstakes gambling establishments might show bothersome for some celebrity endorsers.<br>
 <br>Towns, a star center with the Knicks, and the 76ers' George both endorse VGW's Global Poker brand name while the NBA is partnered with [traditional gaming](https://blkbook.blactive.com/read-blog/2284_the-ins-and-outs-of-betting-on-the-nfl-draft.html) titans like FanDuel and DraftKings.<br>
 <br>'It's ironic that expert athletes are hawking prohibited [sports betting](https://peekz.eu/read-blog/235_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) wagering 'sweeps' sites while at the same time the leagues wish to project a strong position against unlawful [sports betting](https://twixxor.com/read-blog/8918_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html) - specifically when trying to tamp down the periodic gambling scandal,' Glaser told DailyMail.com.<br>
 <br>It was simply eight months ago that Toronto Raptors forward Jontay Porter received a lifetime restriction from the NBA over accusations he conspired with gamblers. However, to be clear, Porter's scandal is unrelated to anything [including social](https://kiwiboom.com/read-blog/1806_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) or [sweepstakes casinos](https://squishmallowswiki.com/index.php/User:CarinaHatten).<br>
 <br>Together with VGW, Apple and Google are being demanded hosting supposedly illegal gambling websites<br>
 <br>Regardless, Glaser sees sweepstakes casinos as a major problem for leagues such as the NBA.<br>
 <br>'I 'd expect that a league crackdown on athletes backing sweepstakes sites refers when, not if,' Glaser added.<br>
 <br>Neither an NBA spokesperson nor the players' agents reacted to DailyMail.com's ask for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps also overlooked to react to DailyMail.com emails.<br>
 <br>Asked if their star endorsers have an obligation to discuss to consumers the differences and similarities between iGaming and sweepstakes casinos, VGW firmly insisted there is absolutely nothing more that needs to be done.<br>
 <br>'We have complete confidence in our influencer and ambassadorial partnerships, and our business practices more broadly,' the spokesperson said. 'A few of our values are" our gamers come initially" and" we do what's right", and we put our values at the core of everything we do.'<br>
 <br>Glaser, an outspoken opponent of sweepstakes sites, sees things differently.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>'Celebrities who lend their names to dubious illegal gambling sites are, at a minimum, putting their track records at threat as well as courting civil and class actions by consumers who allege harm,' Glaser said. 'There is likewise some danger that state regulators and state attorney generals of the United States rope celeb endorsers into enforcement efforts for facilitating illegal [sports betting](https://www.eruptz.com/read-blog/17308_just-how-much-are-americans-spending-on-sports-betting.html).'<br>
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