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 gaming.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>No, they weren't personally in presence, but the world-famous celebs were conspicuously consisted of in a slide presentation on social and sweepstakes casinos - the [controversial sites](https://ai.tienda/read-blog/7279_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) providing both totally free casino-style video games and financially 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 totally free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>The websites are simply 2 cogs in the multibillion-dollar industry that now finds itself besieged by suits. In the eyes of lots of video gaming corporations, not to point out claim plaintiffs and state regulators, sweepstakes [gambling establishments](https://melaninbook.com/read-blog/59385_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) serve as traditional gambling establishments, only without the oversight, customer protections and tax laws. So not only can they prevent the steep 24-percent federal [sports betting](https://africasfaces.com/read-blog/5842_why-every-cricket-fan-need-to-try-the-all-cricket-id-gaming-platform.html) levy, but sweepstakes operators aren't based on regulatory obstacles like [anti-money laundering](https://bytes-the-dust.com/index.php/User:LaurenRegalado) and responsible-gaming protections.<br>
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<br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in profits in 2015 alone. Now the business faces allegations of unlawful gaming in a New york city suit that declares VGW uses star endorsers to 'create a veneer of authenticity' around its product. (See VGW's statement listed below)<br>
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<br>'I'm unsure" if you do not trust us, you can trust Paris Hilton" is a winning message for companies running multibillion-dollar prohibited operations out of locations like Malta, Isle of Man, or US mail drops,' Friday's presenter, Howard Glaser of [gaming corporation](https://africasfaces.com/read-blog/5842_why-every-cricket-fan-need-to-try-the-all-cricket-id-gaming-platform.html) Light & Wonder, informed DailyMail.com.<br>
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<br>Sweepstakes endorsers [consist](https://bookedgetaways.com/2024/12/30/how-to-attract-users-to-my-fantasy-sports-platform/) of a range of stars 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 use any differences in between conventional gambling and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, among many sweepstakes casinos discovered online<br>
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<br>Ryan Seacrest prompts fans to dip into Chumba Casino, where many - but not all - video games are complimentary<br>
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<br>Drake has a handle social sweeps gambling establishment, Stake, that he regularly touts on social networks<br>
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<br>Find out more<br>
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<br>[Donald Trump](https://kiigasofthub.com/read-blog/10122_for-sports-gambling-to-be-legalised.html) 'set to call NBA group owner as US ambassador to Italy'<br>
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<br>Instead, ads normally focus around the social aspect of the casinos, while omitting the capacity for real gaming losses.<br>
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<br>Others tempt consumers with promises of prizes. One such operator, Stake, ran a social media ad revealing off Drake's automobiles, aircrafts and mansions before pivoting to video footage of the rapper playing online casino-style [video games](https://loveyou.az/read-blog/18271_the-ins-and-outs-of-betting-on-the-nfl-draft.html).<br>
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<br>'Daddy, why do we have a lot cash?' check out the very first caption on the screen.<br>
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<br>Another caption explained: 'Because I never quit.'<br>
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<br>The discrepancy in between gaming sites and social or sweepstakes casinos is a bit complicated, however [operators](https://www.hb9lc.org/wiki/index.php/User:AgnesLkb12326) of the latter insist they're not involved with the previous.<br>
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<br>A spokesperson for an [industry](https://philadelphiaflyersclub.com/read-blog/8457_warner-bros-discovery-sets-stage-for-potential-cable-deal-by.html) 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 data, many of the players on social-sweepstakes casinos are playing for free.<br>
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<br>'Most social sweeps customers never purchase,' the SPGA representative informed DailyMail.com. 'The minority of clients who make purchases do so in amounts far smaller than the common deposit or bet size at real-money online gambling websites.'<br>
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<br>Social casinos offer customers an opportunity to play casino-style games with good friends. Players have the choice to purchase valueless currency typically [referred](https://social.stssconstruction.com/read-blog/20899_sport-betting-industry-wants-to-protect-itself.html) to as 'gold coins,' which can not be exchanged for genuine money, but can be utilized to open various functions within the video games.<br>
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<br>But within the world of social casinos video gaming, allowing customers to get other currency referred to as 'sweeps coins' that can be exchanged for cash or other rewards.<br>
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<br>And therein lies the capacity for financial losses, like the ones claimed by complainants in Florida, Georgia, New Jersey and New York. One gamer told the Washington Post he lost more than $100,000 on sweepstakes gambling establishments in the previous year after continuing to purchase more coins in pursuit of cash and other things of value.<br>
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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 gambling establishment Stake ran an ad displaying Drake's automobiles, airplanes and estates<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>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Traditional online gambling establishments are prohibited in all but 7 states, which has assisted to sustain the popularity of sweepstakes gambling establishments.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which do not require typically require identification. However, websites like Chumba will request IDs from gamers attempting to withdraw any funds.<br>
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<br>Many sites, like the crypto-compatible Stake, enable clients to send mail-in requests for complimentary sweeps coins, supplied the [gamers follow](https://mixup.wiki/index.php/User:WadeConnibere04) painfully specific directions. What's more, players are typically rewarded with sweeps coins merely for registering, therefore providing a factor to attempt their hands at any number of casino video games for a chance to win - or lose - [genuine](https://social.oneworldonesai.com/read-blog/1629_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) cash.<br>
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<br>So why are sweepstakes sites enabled 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 free casino-style gaming, and the real-stakes competitors is just a method of promoting their support.<br>
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<br>'Social sweepstakes video games are merely a type of online home entertainment,' an SPGA representative told DailyMail.com by e-mail. 'No purchase is required to dip into social casinos with sweepstakes rewards. Consumers never need to pay for a chance to win rewards. That absence of a purchase requirement - or" consideration" - is an essential difference between social sweeps and traditional online gambling sites like casinos.'<br>
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<br>Consider the way that McDonald's uses 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 chance to win lucrative rewards, 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 meaning of gaming in the US.<br>
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<br>'Sweepstakes are a long-standing method for promoting all kinds of daily businesses in the United States, everything from hamburgers to publication subscriptions to coffee and home improvement shops,' the SPGA representative told DailyMail.com. 'Sweepstakes promos are regularly 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 lots of gambling market insiders, that argument doesn't cut it.<br>
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<br>For starters, gaming lawyer Daniel Wallach explains, McDonald's Monopoly video game does not run forever. Rather, it has a distinct start and end, thus recommending the sweepstakes is not the fast-food giant's primary product. Instead, the sweepstakes is being utilized to promote real products like french fries, shakes, and the Filet-O-Fish.<br>
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<br>'They do not last permanently and they're generally not connected to casino-style games of possibility,' Wallach informed DailyMail.com. 'They're just cash giveaways.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>'The sweepstakes [gambling establishments] have none of the attributes commonly associated with McDonald's-design sweepstakes promos,' Wallach continued. 'Besides running in all time, the sweepstakes casinos use" casino-like" payouts, usually 80 percent or more of earnings, whereas the normal payment percentage for a short-term advertising sweepstakes is a minor share of the profits earned by the company [usually less than one percent]'<br>
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<br>[Wallach](https://higgledy-piggledy.xyz/index.php/User:XHDKorey52) is fast to liken the online social sweeps gambling establishments to the web cafes that emerged in Florida, using clients the possibility to play casino-style games for genuine rewards. A number of those brick-and-mortar facilities have actually since been shuttered over allegations of illegal [sports betting](https://higgledy-piggledy.xyz/index.php/User:HesterNagy).<br>
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<br>DJ Khaled is amongst numerous celebrity spokespeople for VGW's Global Poker brand<br>
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<br>Now, Wallach argues, social sweeps gambling establishments must face similar examination.<br>
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<br>'These distinctions are not approximate,' Wallach stated of social sweeps casinos. 'They have repeatedly been cited by courts and state lawyer generals as crucial elements in figuring out that a sweepstakes promo remained in reality a guise for unlawful gambling.'<br>
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<br>One of the gambling establishment industry's leading trade companies, the American Gaming Association, is now pushing legislators 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 [passing](https://clik.social/read-blog/19021_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) up significant tax and revenue opportunities as this gaming replaces that carried out through managed channels,' read a well-circulated AGA memo.<br>
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<br>And after that there are the plaintiffs who have sued social gambling establishments in more than a dozen states.<br>
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<br>Sweepstakes casino operators paid a combined $14.2 million in 4 different cases in Kentucky without admitting any wrongdoing, according to the Washington Post. Meanwhile VGW accepted pay $11.75 million in one class-action lawsuit, stating the settlement was made to prevent legal expenses and continued litigation.<br>
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<br>Michael Phelps has actually signed a deal with the VGW Group, which owns Global Poker<br>
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<br>In the latest claim, which is largely 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 'illegal [sports betting](https://aceme.ink/read-blog/1716_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html) enterprise. '<br>
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<br>Apple and Google have actually also been called as defendants in lawsuits for hosting the sweepstakes sites. But unlike VGW, neither tech business responded to DailyMail.com's ask for comment.<br>
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<br>'We usually do not comment on matters before the courts,' a VGW spokesperson informed DailyMail.com by means of email. '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>
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<br>'We have complete self-confidence in our compliance with all laws and policies where we run, and remain [confident](https://twixxor.com/read-blog/8915_for-sports-gambling-to-be-legalised.html) about the future,' the representative continued. 'We continue to offer our free-to-play games across the majority of North America, as we have for more than a years, producing not just terrific video games, user experiences and entertainment, but likewise guaranteeing this is done securely, properly and at the highest level of requirements.<br>
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<br>'More broadly, we 'd repeat that class actions and other [lawsuits](https://ifairy.world/read-blog/1361_online-betting-firms-gamble-on-soccer-mad-nigeria.html) and arbitrations are relatively typical across the online social video games industry (and the US more broadly), and our standard practice is that we plan to intensely protect any claim which might be brought versus us.'<br>
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<br>The issues in between traditional online [sports betting](https://ishare.igrowtech.biz/read-blog/5413_why-every-cricket-fan-should-try-the-all-cricket-id-gaming-platform.html) and sweepstakes gambling establishments could prove problematic for some celeb 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 conventional gaming titans like FanDuel and DraftKings.<br>
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<br>'It's ironic that professional athletes are hawking prohibited [sports betting](https://wiki.vst.hs-furtwangen.de/wiki/User:DouglasDuggan27) wagering 'sweeps' websites while at the exact same time the leagues want to predict a strong position versus prohibited [sports betting](https://www.heesah.com/read-blog/2081_how-to-withdraw-from-bet9ja-8-step-guide-to-cash-in-your-wins.html) - particularly when attempting to tamp down the periodic gaming scandal,' Glaser told [DailyMail](https://wavedream.wiki/index.php/User:LindseyColon).com.<br>
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<br>It was just eight months ago that Toronto Raptors forward Jontay Porter got a life time restriction from the NBA over allegations he conspired with gamblers. However, to be clear, Porter's scandal is unrelated to anything involving social or [sweepstakes](https://www.athleticzoneforum.com/read-blog/753_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) gambling establishments.<br>
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<br>Together with VGW, Apple and Google are being taken legal action against for hosting allegedly unlawful [sports betting](https://strimsocial.net/read-blog/19030_things-you-need-to-understand-about-rafting-adventures.html) sites<br>
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<br>Regardless, Glaser sees sweepstakes gambling establishments as a significant problem for leagues such as the NBA.<br>
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<br>'I 'd anticipate that a league crackdown on athletes endorsing sweepstakes sites refers when, not if,' Glaser included.<br>
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<br>Neither an NBA spokesman nor the players' agents reacted to DailyMail.com's ask for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise ignored to react to DailyMail.com e-mails.<br>
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<br>Asked if their star endorsers have a duty to discuss to customers the differences and resemblances between iGaming and sweepstakes gambling establishments, VGW insisted there is nothing more that needs to be done.<br>
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<br>'We have complete confidence in our influencer and ambassadorial partnerships, and our business practices more broadly,' the spokesperson said. 'Some of our worths are" our players come initially" 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 challenger of sweepstakes sites, sees things differently.<br>
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<br>'Celebrities who provide their names to dubious prohibited gambling sites are, at a minimum, putting their track records at risk as well as courting civil and class actions by consumers who declare harm,' Glaser stated. 'There is likewise some danger that state regulators and state attorneys basic rope celeb endorsers into enforcement efforts for assisting in unlawful gambling.'<br>
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<br>New YorkNBADrakeParis Hilton<br>
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