Sweepstakes Casinos Under Attack by New York’s Attorney General

Cease-and-desist letters sent to online sweepstakes casinos operating in the state.

Ziv Chen

Last updated: June 9, 2025 11:56 AM EDT • 2 min read

On Friday, New York’s Attorney General Letitia James announced that her office sent 26 cease-and-desist letters to online sweepstakes casinos that operate in the state. The move follows a joint investigation conducted by the Office of the Attorney General (OAG) and the New York State Gaming Commission (NYSGC).

The OAG determined that the sites in question are illegal, as New York state gambling laws prohibit unlicensed operators from offering prizes of real monetary value. However, sweepstakes sites entice New York players to play online slot machines, table games, and sports bets with virtual currency, which can be redeemed for money and gift vouchers.

Although sweepstakes operators also provide bonus coins that are free to play and cannot be redeemed, investigative authorities found that most of these operators allow, and even encourage, players to purchase more virtual coins, which can then be redeemed for cash prizes or other rewards. The Attorney General further elaborated that this model makes it difficult to distinguish between legal gaming and illegal gambling.

James concluded that these sweepstakes operators are breaking the law and could potentially harm customers, as sweepstakes casinos, which aren't regulated, are risky for players and can worsen gambling-related harm.

James stressed that her office's actions were done in collaboration with the NYSGC and with the help of legislative allies like New York Senator Joseph Addabbo, who has called for clearer gambling regulation.

Support for the AG

NYSGC Chairman Brian O'Dwyer echoed these worries, saying that players are put in unfair and possibly dangerous situations because there is no oversight on sweepstakes-style platforms. He said that more people should know about the risks of dealing with unlicensed operators and that legal, regulated gambling options are very important.

Assemblywoman Carrie Woerner, who leads the Assembly's Standing Committee on Racing and Wagering, said that these platforms are popular with younger people and could lead to more serious gambling behavior.

She said that the AG's action was a good thing and a necessary step to protect people who are weak.

The cease-and-desist letters name well-known sites like Chumba Casino, Global Poker, Luckyland Slots, High 5 Casino, and Fortune Coins. Fliff, McLuck, Jackpota, Sportzino, and Zula Casino were also targeted.

Virtual Gaming Worlds, which owns Chumba Casino and other sites, said in May that it would leave the New York market. That decision, which was made before the C&D letter, came after increasing attention was paid to sweepstakes casinos and proposed laws across the U.S. that would close legal loopholes that have allowed them to operate.

Written By:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.