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 illegal [sports betting](https://afrocinema.org/read-blog/42494_online-betting-firms-gamble-on-soccer-mad-nigeria.html).<br>
 <br>No, they weren't personally in presence, but the world-famous stars were notably consisted of in a slide presentation on social and sweepstakes gambling establishments - the controversial sites providing both totally free casino-style video games and rewarding rewards, such as cash, present cards or cryptocurrency. In one ad, the fist-pumping Seacrest is seen plugging Chumba Casino, where anyone can 'play for free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>
 <br>The sites are simply 2 cogs in the multibillion-dollar market that now finds itself besieged by lawsuits. In the eyes of many video gaming corporations, not to mention [lawsuit complainants](http://social.redemaxxi.com.br/read-blog/1473_just-how-much-are-americans-investing-in-sports-betting.html) and state regulators, sweepstakes gambling establishments act as traditional gambling establishments, just without the oversight, consumer protections and tax laws. So not only can they prevent the steep 24-percent federal [sports betting](https://vishwakarmacommunity.org/read-blog/7970_how-much-are-americans-spending-on-sports-betting.html) levy, but sweepstakes operators aren't based on regulative obstacles like anti-money laundering and responsible-gaming defenses.<br>
 <br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in earnings last year alone. Now the company faces accusations of unlawful gambling in a New York [lawsuit](https://cheere.org/read-blog/36287_compare-amp-review-oddsjet-de.html) that declares VGW utilizes celebrity endorsers to 'develop a veneer of legitimacy' around its product. (See VGW's statement below)<br>
 <br>'I'm not exactly sure" if you do not trust us, you can rely on Paris Hilton" is a winning message for companies operating multibillion-dollar unlawful operations out of places like Malta, Isle of Man, or US mail drops,' Friday's presenter, Howard Glaser of gaming corporation Light & Wonder, informed DailyMail.com.<br>
 <br>Sweepstakes endorsers consist of a variety of celebrities from [sports betting](https://strimsocial.net/read-blog/19198_the-history-of-the-nfl-and-how-to-bet-on-it.html) 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 distinctions between conventional gaming and sweepstakes play.<br>
 <br>Paris Hilton is seen plugging Wow Vegas, one of lots of sweepstakes gambling establishments discovered online<br>
 <br>Ryan Seacrest advises fans to dip into Chumba Casino, where lots of - but not all [- games](https://seenoor.com/read-blog/413_the-history-of-the-nfl-and-how-to-bet-on-it.html) are complimentary<br>
 <br>Drake has a deal with social sweeps gambling establishment, Stake, that he regularly touts on social networks<br>
 <br>Read More<br>
 <br>Donald Trump 'set to call NBA group owner as US ambassador to Italy'<br>
 <br>Instead, [advertisements typically](https://nexthub.live/read-blog/134_missouri-sports-betting-ballot-measure-approved-by-voters.html) center around the social aspect of the gambling establishments, while leaving out the potential for actual [sports betting](https://cittaviva.net/read-blog/25203_for-sports-gambling-to-be-legalised.html) losses.<br>
 <br>Others tempt consumers with guarantees of prizes. One such operator, Stake, ran a social networks ad displaying Drake's cars, planes and estates before rotating to video footage of the rapper playing online casino-style video games.<br>
 <br>'Daddy, why do we have so much cash?' read the very first caption on the screen.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
 <br>Another caption described: 'Because I never quit.'<br>
 <br>The disparity in between gambling websites and social or [sweepstakes gambling](http://maili.demoe.cn112/read-blog/439_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) establishments is a bit complicated, but operators of the latter insist they're not involved with the former.<br>
 <br>A spokesperson for an industry trade group, the Social and Promotional Gaming Association (SPGA), [explained](https://sportysocialspace.com/read-blog/11999_just-how-much-are-americans-spending-on-sports-betting.html) its members are not in direct competitors with online casinos and sportsbooks. Furthermore, according to SPGA information, the majority of the players on social-sweepstakes gambling establishments are playing for free.<br>
 <br>'Most social sweeps clients never ever purchase,' the SPGA spokesperson told DailyMail.com. 'The minority of clients who make purchases do so in amounts far smaller than the typical deposit or bet size at real-money online [sports betting](https://oolibuzz.com/read-blog/41724_just-how-much-are-americans-investing-in-sports-betting.html) websites.'<br>
 <br>Social gambling establishments use consumers a chance to play casino-style games with friends. Players have the option to purchase worthless currency frequently referred to as 'gold coins,' which can not be exchanged for genuine money, but can be used to unlock different features within the video games.<br>
 <br>But within the world of social gambling establishments exists sweepstakes video gaming, enabling customers to obtain other currency called 'sweeps coins' that can be exchanged for cash or other rewards.<br>
 <br>And therein lies the capacity for monetary losses, like the ones declared by complainants in Florida, Georgia, New Jersey and New York. One gamer informed the Washington Post he lost more than $100,000 on sweepstakes casinos in the past year after continuing to buy more coins in pursuit of cash and other things of worth.<br>
 <br>The Philadelphia 76ers' Paul George is seen promoting an International Poker event<br>
 <br>Social sweeps gambling establishment Stake ran an advertisement displaying Drake's cars and trucks, airplanes and mansions<br>
 <br>Karl-Anthony Towns of the New York City Knicks is another NBA star plugging VGW's Global Poker<br>
 <br>Traditional online casinos are prohibited in all however seven states, which has actually assisted to fuel the appeal of sweepstakes gambling establishments.<br>
 <br>Anyone over the age of 18 can access the sweepstakes websites, which don't need usually need recognition. However, [websites](https://realhindu.in/read-blog/21352_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) like Chumba will ask for IDs from gamers attempting to withdraw any funds.<br>
 <br>Many websites, like the crypto-compatible Stake, enable consumers to submit mail-in ask for free sweeps coins, supplied the gamers follow painfully specific guidelines. What's more, gamers are frequently rewarded with sweeps coins merely for registering, thereby providing a factor to try their hands at any variety of casino games for a possibility to win - or lose - real cash.<br>
 <br>So why are sweepstakes sites permitted to run in 48 states, while online gambling establishments are prohibited in all but 7?<br>
 <br>According to the stakeholders, their item is the totally free casino-style video gaming, and the [real-stakes competitors](https://wooshbit.com/read-blog/18730_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) is simply a way of promoting their support.<br>
 <br>'Social sweepstakes video games are merely a kind of online home entertainment,' an SPGA spokesperson told DailyMail.com by e-mail. 'No purchase is needed to play at social gambling establishments with sweepstakes rewards. Consumers never ever need to pay for an opportunity to win prizes. That absence of a purchase requirement - or" factor to consider" - is an essential distinction in between social sweeps and traditional online gambling sites like gambling establishments.'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
 <br>Consider the manner in which McDonald's utilizes its yearly Monopoly game to promote its food: Customers aren't paying to bet, however rather they're buying hamburgers and french fries that offer them the opportunity to win lucrative rewards, such as a $1 million prize.<br>
 <br>And without a purchase requirement, or 'consideration', the game itself doesn't satisfy the meaning of gaming in the US.<br>
 <br>'Sweepstakes are a long-standing method for  all sort of everyday businesses in the United States, everything from burgers to publication subscriptions to coffee and home enhancement shops,' the SPGA spokesperson informed DailyMail.com. 'Sweepstakes promos 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 many [sports betting](http://maili.demoe.cn:112/read-blog/439_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) industry experts, that argument doesn't cut it.<br>
 <br>For starters, video gaming attorney Daniel Wallach explains, McDonald's Monopoly game does not run forever. Rather, it has a distinct beginning and end, therefore recommending the sweepstakes is not the fast-food giant's main product. Instead, the sweepstakes is being used to promote real items like french fries, shakes, and the Filet-O-Fish.<br>
 <br>'They don't last forever and they're generally not connected to casino-style video games of possibility,' Wallach told DailyMail.com. 'They're just money giveaways.<br>
 <br>'The sweepstakes [gambling establishments] possess none of the characteristics typically connected with McDonald's-style sweepstakes promos,' Wallach continued. 'Besides running in perpetuity, the sweepstakes casinos provide" casino-like" payouts, typically 80 percent or more of incomes, whereas the common payment [portion](https://social.stssconstruction.com/read-blog/21074_how-are-betting-odds-calculated.html) for a momentary promotional sweepstakes is a trivial share of the revenue made by the business [typically less than one percent]'<br>
 <br>Wallach is quick to compare the online social sweeps casinos to the web coffee shops that sprang up in Florida, providing consumers the chance to play casino-style video games for genuine rewards. Much of those brick-and-mortar facilities have actually given that been shuttered over accusations of prohibited [sports betting](https://www.social.united-tuesday.org/read-blog/19465_how-much-are-americans-spending-on-sports-betting.html).<br>
 <br>DJ Khaled is amongst several celebrity spokespeople for VGW's Global Poker brand name<br>
 <br>Now, Wallach argues, social sweeps casinos ought to deal with comparable analysis.<br>
 <br>'These differences are not arbitrary,' Wallach stated of social sweeps gambling [establishments](https://www.miptrucking.net/read-blog/1287_things-you-need-to-know-about-rafting-adventures.html). 'They have [consistently](https://bundas24.com/read-blog/180694_sport-betting-industry-looks-to-protect-itself.html) been cited by courts and state attorney general of the United States as key aspects in determining that a sweepstakes promo remained in truth a guise for unlawful [sports betting](https://camlive.ovh/read-blog/2483_start-off-winning-with-pcg-college-football-picks.html).'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
 <br>Among the casino market's leading trade companies, the American Gaming Association, is now pressing lawmakers to examine sweepstakes operators and, in some cases, enact new legislation on the concern.<br>
 <br>'Consumers are being deprived of defenses and states are forgoing substantial tax and income opportunities as this gaming replaces that carried out through [controlled](https://micircle.in/read-blog/469_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) channels,' read a well-circulated AGA memo.<br>
 <br>And after that there are the complainants who have taken legal action against social casinos in more than a lots states.<br>
 <br>Sweepstakes casino operators paid a combined $14.2 million in 4 separate cases in Kentucky without admitting any wrongdoing, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action suit, saying the settlement was made to prevent legal costs and continued lawsuits.<br>
 <br>Michael Phelps has actually signed a handle the VGW Group, which owns Global Poker<br>
 <br>In the most recent lawsuit, which is mostly similar to its predecessors, New York state citizens Lamar Prater and Rebecca Pratt both declare to have actually lost well over $1,000 to VGW, which is described in the filing as an 'illegal gaming [enterprise](https://globalunitedspirits.com/read-blog/3628_for-sports-gambling-to-be-legalised.html). '<br>
 <br>Apple and Google have likewise been named as offenders in lawsuits for hosting the sweepstakes websites. But unlike VGW, neither tech company responded to DailyMail.com's ask for comment.<br>
 <br>'We generally don't comment on matters before the courts,' a VGW spokesperson told DailyMail.com through e-mail. 'However, we keep in mind that this claim has actually only simply been submitted with the court and VGW has not been formally served.<br>
 <br>'We have complete self-confidence in our compliance with all laws and policies where we operate, and remain positive about the future,' the representative continued. 'We continue to offer our [free-to-play video](https://surgiteams.com/index.php/User:GordonPickett7) games across many of The United States and Canada, as we have for more than a years, producing not just great games, user experiences and entertainment, but also guaranteeing this is done safely, properly and at the highest level of standards.<br>
 <br>'More broadly, we 'd reiterate that class actions and other lawsuits and arbitrations are reasonably common across the online social games market (and the US more broadly), and our standard practice is that we mean to vigorously safeguard any claim which might be brought against us.'<br>
 <br>The concerns in between standard online gambling and sweepstakes casinos could show problematic for some celebrity endorsers.<br>
 <br>Towns, a star center with the Knicks, and the 76ers' George both endorse VGW's Global Poker brand while the NBA is partnered with traditional video gaming titans like FanDuel and [DraftKings](https://ishare.igrowtech.biz/read-blog/5413_why-every-cricket-fan-should-try-the-all-cricket-id-gaming-platform.html).<br>
 <br>'It's ironic that expert athletes are hawking prohibited [sports betting](https://africasfaces.com/read-blog/5855_things-you-need-to-learn-about-rafting-adventures.html) 'sweeps' websites while at the very same time the leagues wish to project a strong stance versus prohibited gaming - especially when trying to tamp down the periodic gaming scandal,' Glaser informed DailyMail.com.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
 <br>It was simply 8 months ago that Toronto Raptors forward Jontay Porter got a life time ban from the NBA over claims he conspired with gamblers. However, to be clear, Porter's scandal is unrelated to anything including social or sweepstakes gambling establishments.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>In addition to VGW, Apple and Google are being demanded hosting allegedly illegal [sports betting](https://chat.app8station.com/read-blog/3593_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) sites<br>
 <br>Regardless, Glaser sees sweepstakes gambling [establishments](https://coptr.digipres.org/index.php/User:TreyMcQuade53) as a major problem for leagues such as the NBA.<br>
 <br>'I 'd expect that a league crackdown on athletes backing sweepstakes websites is a matter of when, not if,' Glaser included.<br>
 <br>Neither an NBA spokesman nor the gamers' representatives reacted to DailyMail.com's demands for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise neglected to respond to DailyMail.com e-mails.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>Asked if their star endorsers have a duty to explain to consumers the differences and [similarities](https://sosmed.almarifah.id/read-blog/1146_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) between iGaming and sweepstakes gambling establishments, VGW firmly insisted there is absolutely nothing more that requires to be done.<br>
 <br>'We have complete self-confidence in our influencer and ambassadorial collaborations, and our organization practices more broadly,' the spokesperson stated. 'Some of our worths are" our gamers come initially" and" we do what's right", and we put our worths at the core of everything we do.'<br>
 <br>Glaser, an outspoken opponent of sweepstakes sites, sees things differently.<br>
 <br>'Celebrities who lend their names to dubious illegal gaming websites are, at a minimum, putting their credibilities at threat in addition to courting civil and class actions by customers who allege harm,' Glaser said. 'There is likewise some threat that state [regulators](https://cosplaybook.de/read-blog/7016_the-ins-and-outs-of-betting-on-the-nfl-draft.html) and state chief law officers rope celeb endorsers into enforcement efforts for assisting in unlawful gambling.'<br>
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