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 unlawful gaming.<br>
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<br>No, they weren't personally in participation, but the world-famous celebrities were notably included in a slide discussion on social and sweepstakes gambling establishments - the controversial sites offering both complimentary casino-style games and lucrative rewards, 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 operator, Wow Vegas, in the other.<br>
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<br>The sites are simply two cogs in the multibillion-dollar industry that now finds itself besieged by claims. In the eyes of many gaming corporations, not to point out claim complainants and state regulators, sweepstakes casinos serve as conventional casinos, only without the oversight, consumer securities and tax laws. So not only can they prevent the steep 24-percent federal gambling levy, but sweepstakes operators aren't subject to regulative obstacles like anti-money laundering and responsible-gaming defenses.<br>
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<br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in earnings last year alone. Now the company deals with allegations of prohibited [sports betting](http://1600-6765.com/board_fyUJ95/176750) in a New York suit that declares VGW utilizes celebrity endorsers to 'develop a veneer of legitimacy' around its product. (See VGW's statement below)<br>
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<br>'I'm not sure" if you don't trust us, you can trust Paris Hilton" is a winning message for companies operating multibillion-dollar unlawful operations out of locations like Malta, Isle of Man, or US mail drops,' Friday's speaker, Howard Glaser of video gaming corporation Light & Wonder, told DailyMail.com.<br>
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<br>Sweepstakes endorsers include a series of celebs from gambling lovers Drake and DJ Khaled to swimmer Michael Phelps, in addition to NBA stars Karl-Anthony Towns and Paul George - none of whom offer any distinctions in between standard [sports betting](https://tartar.app/read-blog/1723_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, among many sweepstakes casinos discovered online<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Ryan Seacrest urges fans to play at Chumba Casino, where numerous - however not all - video games are complimentary<br>
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<br>Drake has a handle social sweeps casino, Stake, that he routinely promotes on social media<br>
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<br>Read 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, advertisements generally focus around the social aspect of the casinos, while omitting the potential for real [sports betting](https://younivix.com/read-blog/29899_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) losses.<br>
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<br>Others lure consumers with promises of rewards. One such operator, Stake, ran a social networks ad revealing off Drake's cars, aircrafts and mansions before rotating to video footage of the rap artist playing online casino-style games.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>'Daddy, why do we have so much cash?' read the first [caption](https://oninabresources.com/how-much-are-americans-investing-in-sports-betting/) on the screen.<br>
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<br>Another caption described: 'Because I never ever provided up.'<br>
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<br>The disparity in between gaming websites and social or sweepstakes casinos is a bit complicated, but operators of the latter insist they're not [involved](https://social.instinxtreme.com/read-blog/13725_how-to-attract-users-to-my-fantasy-sports-platform.html) 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, most of the gamers on social-sweepstakes casinos are playing for complimentary.<br>
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<br>'Most social sweeps customers never ever purchase,' the SPGA spokesperson informed DailyMail.com. 'The minority of clients who make purchases do so in quantities far smaller sized than the normal deposit or bet size at real-money online gaming websites.'<br>
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<br>Social gambling establishments use clients a chance to play casino-style games with buddies. Players have the choice to buy worthless currency often referred to as 'gold coins,' which can not be exchanged for genuine money, but can be used to open different functions within the games.<br>
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<br>But within the world of social casinos exists sweepstakes video gaming, permitting customers to obtain other currency known as 'sweeps coins' that can be exchanged for cash or other prizes.<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 previous year after continuing to purchase more coins in pursuit of money and other things of worth.<br>
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<br>The Philadelphia 76ers' Paul George is seen promoting an International Poker event<br>
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<br>Social sweeps casino Stake ran an advertisement showing off Drake's cars and trucks, planes and estates<br>
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<br>Karl-Anthony Towns of the New York Knicks is another NBA star plugging VGW's Global Poker<br>
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<br>Traditional online casinos are prohibited in all but 7 states, which has actually helped to fuel the appeal of sweepstakes gambling establishments.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which don't need usually require identification. However, sites like Chumba will request IDs from players attempting to withdraw any funds.<br>
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<br>Many websites, like the crypto-compatible Stake, allow customers to send mail-in ask for free sweeps coins, offered the players follow painfully particular guidelines. What's more, gamers are typically rewarded with sweeps coins simply for registering, consequently giving them a factor to try their hands at any number of casino games for a possibility to win - or lose - genuine cash.<br>
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<br>So why are sweepstakes sites [enabled](https://social.ppmandi.com/read-blog/235_the-ins-and-outs-of-betting-on-the-nfl-draft.html) to operate in 48 states, while online casinos are banned in all but 7?<br>
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<br>According to the stakeholders, their item is the free casino-style video gaming, and the real-stakes competition is simply a way of promoting their support.<br>
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<br>'Social sweepstakes games are merely a type of online home entertainment,' an SPGA representative informed DailyMail.com by e-mail. 'No purchase is required to play at social casinos with sweepstakes rewards. Consumers never need to spend for a chance to win prizes. That lack of a purchase requirement - or" consideration" - is an essential distinction in between social sweeps and [conventional online](http://www.seferpanim.com/read-blog/388_for-sports-gambling-to-be-legalised.html) gambling websites like gambling establishments.'<br>
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<br>Consider the method that McDonald's utilizes its yearly Monopoly video game to promote its food: Customers aren't paying to gamble, however rather they're purchasing hamburgers and fries that provide them the possibility to win financially rewarding prizes, such as a $1 million prize.<br>
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<br>And without a purchase requirement, or 'consideration', the game itself does not satisfy the meaning of gaming in the US.<br>
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<br>'Sweepstakes are an enduring technique for promoting all kinds of daily companies in the United States, everything from burgers to publication subscriptions to coffee and home enhancement shops,' the SPGA representative told DailyMail.com. 'Sweepstakes promos are regularly used 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 numerous gambling market insiders, that argument doesn't cut it.<br>
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<br>For beginners, video gaming attorney Daniel Wallach points out, McDonald's Monopoly video game does not run indefinitely. Rather, it has a well-defined start and end, thus recommending the [sweepstakes](https://ai.tienda/read-blog/7274_just-how-much-are-americans-investing-in-sports-betting.html) is not the fast-food giant's main product. Instead, the sweepstakes is being used to promote genuine items like french fries, shakes, and the Filet-O-Fish.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>'They don't last permanently and they're typically not connected to casino-style games of opportunity,' Wallach informed DailyMail.com. ['They're](https://youtoosocialnetwork.com/read-blog/1292_things-you-need-to-know-about-rafting-adventures.html) just [cash free](https://uptoscreen.com/read-blog/74300_warner-bros-discovery-sets-stage-for-potential-cable-deal-by.html) gifts.<br>
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<br>'The sweepstakes [casinos] possess none of the characteristics typically related to McDonald's-design sweepstakes promotions,' Wallach continued. 'Besides running in eternity, the sweepstakes gambling establishments use" casino-like" payments, usually 80 percent or more of revenues, whereas the common payout portion for a temporary marketing sweepstakes is an insignificant share of the earnings made by the business [usually less than one percent]'<br>
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<br>Wallach fasts to liken the online social sweeps casinos to the [web cafes](https://peoplesmedia.co/read-blog/12645_just-how-much-are-americans-spending-on-sports-betting.html) that emerged in Florida, using customers the possibility to play casino-style video games for genuine rewards. Many of those brick-and-mortar facilities have considering that been shuttered over claims of prohibited [sports betting](https://kenyansocial.com/read-blog/1342_online-betting-firms-gamble-on-soccer-mad-nigeria.html).<br>
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<br>DJ Khaled is among a number of star spokespeople for VGW's [Global Poker](https://social.instinxtreme.com/read-blog/13726_online-betting-firms-gamble-on-soccer-mad-nigeria.html) brand name<br>
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<br>Now, Wallach argues, social sweeps gambling establishments ought to deal with comparable examination.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>'These differences are not approximate,' Wallach stated of social sweeps gambling establishments. 'They have actually consistently been cited by courts and state attorney general of the United States as crucial consider determining that a sweepstakes promotion was in fact a guise for prohibited gambling.'<br>
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<br>Among the casino market's leading trade companies, the American Gaming Association, is now pressing legislators to investigate sweepstakes operators and, in many cases, enact new legislation on the problem.<br>
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<br>'Consumers are being denied of protections and states are forgoing considerable tax and revenue chances as this gaming replaces that carried out through controlled channels,' checked out a well-circulated AGA memo.<br>
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<br>And then there are the plaintiffs who have actually taken [legal action](https://olympiquelyonnaisfansclub.com/read-blog/15366_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) against social casinos in more than a dozen states.<br>
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<br>Sweepstakes casino operators paid a combined $14.2 million in four different cases in Kentucky without confessing any misbehavior, according to the Washington Post. Meanwhile VGW accepted pay $11.75 million in one class-action suit, saying the settlement was made to prevent legal expenses and continued litigation.<br>
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<br>Michael Phelps has actually signed a handle the VGW Group, which owns Global Poker<br>
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<br>In the current lawsuit, which is mainly comparable to its predecessors, New York state citizens Lamar Prater and Rebecca Pratt both claim to have lost well over $1,000 to VGW, which is described in the filing as an 'prohibited gambling business. '<br>
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<br>Apple and Google have actually likewise been named as accuseds in claims for hosting the sweepstakes sites. But unlike VGW, neither tech company reacted to DailyMail.com's request for comment.<br>
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<br>'We usually don't comment on matters before the courts,' a VGW spokesperson informed DailyMail.com through e-mail. 'However, we keep in mind that this claim has only just been submitted with the court and VGW has actually not been [formally served](https://surgiteams.com/index.php/User:GertrudeFishman).<br>
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<br>'We have full confidence in our compliance with all laws and guidelines where we operate, and remain positive about the future,' the spokesperson continued. 'We continue to offer our free-to-play video games across the majority of The United States and Canada, as we have for more than a decade, producing not just terrific games, user and entertainment, but likewise ensuring this is done safely, responsibly and at the greatest level of requirements.<br>
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<br>'More broadly, we 'd restate that class actions and other litigations and arbitrations are fairly common across the online social video games industry (and the US more broadly), and our basic practice is that we intend to vigorously protect any claim which may be brought against us.'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>The problems in between conventional online gambling and sweepstakes gambling [establishments](http://archmageriseswiki.com/index.php/User:DUSJulie51585042) could prove 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 name while the NBA is partnered with standard video gaming titans like FanDuel and DraftKings.<br>
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<br>'It's paradoxical that professional athletes are hawking illegal [sports betting](https://mysuccessdarpan.com/read-blog/12310_things-you-need-to-understand-about-rafting-adventures.html) 'sweeps' websites while at the exact same time the leagues want to forecast a strong position against unlawful [sports betting](https://www.opentx.cz/index.php/U%C5%BEivatel:AlannaHamer89) - particularly when trying to tamp down the periodic gambling scandal,' Glaser informed DailyMail.com.<br>
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<br>It was just 8 months ago that Toronto Raptors forward Jontay Porter received a lifetime ban from the NBA over allegations he conspired with gamblers. However, to be clear, Porter's scandal is unrelated to anything involving social or sweepstakes casinos.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>In addition to VGW, Apple and Google are being sued for hosting presumably unlawful gambling sites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a significant problem for leagues such as the NBA.<br>
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<br>'I 'd expect that a league crackdown on athletes endorsing sweepstakes websites is a matter of when, not if,' Glaser added.<br>
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<br>Neither an NBA representative 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 ignored to react to DailyMail.com e-mails.<br>
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<br>Asked if their celeb endorsers have an obligation to discuss to customers the distinctions and similarities between iGaming and sweepstakes casinos, VGW insisted there is nothing more that requires to be done.<br>
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<br>'We have full confidence in our influencer and ambassadorial partnerships, and our company practices more broadly,' the [spokesperson stated](https://gayplatform.de/read-blog/3309_just-how-much-are-americans-investing-in-sports-betting.html). 'Some of our worths are" our players come first" and" we do what's right", and we put our values at the core of whatever 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 dubious unlawful [sports betting](https://realhindu.in/read-blog/21490_the-ins-and-outs-of-betting-on-the-nfl-draft.html) sites are, at a minimum, putting their track records at risk along with courting civil and class actions by consumers who declare harm,' Glaser stated. 'There is likewise some threat that state regulators and state attorney generals of the United States rope star endorsers into enforcement efforts for facilitating unlawful [sports betting](https://social.engagepure.com/read-blog/808_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html).'<br>
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