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 hearing on prohibited [sports betting](https://www.opentx.cz/index.php/U%C5%BEivatel:VIXAndreas).<br>
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<br>No, they weren't personally in attendance, however the world-famous celebs were notably included in a [slide presentation](https://collegetalks.site/read-blog/11744_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) on social and sweepstakes casinos - the controversial websites providing both complimentary casino-style games and rewarding prizes, such as money, gift cards or cryptocurrency. In one ad, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'bet free,' 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 2 cogs in the multibillion-dollar market that now finds itself besieged by lawsuits. In the eyes of lots of gaming corporations, not to mention claim plaintiffs and state regulators, sweepstakes casinos function as traditional casinos, just without the oversight, consumer protections and tax laws. So not only can they prevent the steep 24-percent federal gaming levy, but [sweepstakes operators](http://archmageriseswiki.com/index.php/User:TheresaVelazquez) aren't subject to regulatory obstacles like anti-money laundering and responsible-gaming protections.<br>
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<br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in income in 2015 alone. Now the business faces accusations of unlawful [sports betting](https://mixup.wiki/index.php/User:BetteUle62157377) in a New York claim that declares VGW uses celebrity endorsers to 'produce a veneer of legitimacy' around its product. (See VGW's statement below)<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>'I'm uncertain" if you do not trust us, you can rely on Paris Hilton" is a winning message for business running multibillion-dollar illegal operations out of locations like Malta, Isle of Man, or US mail drops,' Friday's presenter, Howard Glaser of video gaming corporation Light & Wonder, told DailyMail.com.<br>
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<br>Sweepstakes endorsers consist of a series of stars from [sports betting](https://lubuzz.com/read-blog/109_online-betting-firms-gamble-on-soccer-mad-nigeria.html) lovers Drake and DJ Khaled to swimmer [Michael](https://voggisper.com/read-blog/1213_things-you-need-to-know-about-rafting-adventures.html) Phelps, as well as NBA stars Karl-Anthony Towns and Paul George - none of whom use any differences in between conventional [sports betting](https://trackrecord.id/read-blog/1730_how-to-play-bet9ja-online.html) and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, among numerous sweepstakes gambling establishments discovered online<br>
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<br>Ryan Seacrest advises fans to play at Chumba Casino, where many - however not all - video games are free<br>
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<br>Drake has an offer with social sweeps casino, Stake, that he routinely promotes on social media<br>
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<br>Find out more<br>
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<br>Donald Trump 'set to name NBA group owner as US ambassador to Italy'<br>
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<br>Instead, advertisements generally focus around the social element of the gambling establishments, while leaving out the potential for real gaming losses.<br>
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<br>Others lure customers with pledges of rewards. One such operator, Stake, ran a social networks ad revealing off Drake's automobiles, planes and mansions before pivoting to video footage of the rap artist playing online casino-style games.<br>
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<br>'Daddy, why do we have a lot money?' check out the first caption on the screen.<br>
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<br>Another caption discussed: 'Because I never quit.'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>The discrepancy between [sports betting](https://voggisper.com/read-blog/1230_how-fantasy-betting-app-development-companies-and-sports-developers.html) sites and social or sweepstakes gambling establishments is a bit complicated, however operators of the latter insist they're not included with the former.<br>
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<br>A representative for an industry 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 information, the majority of the gamers on social-sweepstakes gambling establishments 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 customers who make purchases do so in quantities far smaller than the common deposit or wager size at real-money online [sports betting](https://coptr.digipres.org/index.php/User:VioletSpencer44) sites.'<br>
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<br>Social casinos offer clients a possibility to play casino-style games with buddies. Players have the alternative to buy worthless currency typically referred to as 'gold coins,' which can not be exchanged genuine cash, but can be used to unlock different functions within the video games.<br>
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<br>But within the world of social casinos exists sweepstakes gaming, permitting clients to get other currency called 'sweeps coins' that can be exchanged for cash or other prizes.<br>
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<br>And therein lies the capacity for monetary losses, like the ones claimed by complainants in Florida, Georgia, New Jersey and New York City. One gamer informed the Washington Post he lost more than $100,000 on sweepstakes gambling establishments in the past year after continuing to purchase more coins in pursuit of cash 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 gambling establishment Stake ran an advertisement displaying Drake's vehicles, planes and mansions<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>
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<br>Traditional online casinos are prohibited in all but seven states, which has actually helped to fuel the popularity of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which don't require generally require recognition. However, sites like Chumba will request for IDs from gamers attempting to withdraw any funds.<br>
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<br>Many sites, like the crypto-compatible Stake, allow consumers to send mail-in ask for totally free sweeps coins, supplied the players follow painfully specific guidelines. What's more, players are frequently rewarded with sweeps coins simply for registering, consequently giving them a factor to attempt their hands at any variety of casino games for an opportunity to win - or lose - genuine money.<br>
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<br>So why are sweepstakes sites allowed to run in 48 states, while online casinos are prohibited in all but 7?<br>
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<br>According to the stakeholders, their item is the totally free casino-style gaming, and the real-stakes competition is merely a means of promoting their bread and butter.<br>
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<br>'Social sweepstakes video games are merely a type of online home entertainment,' an SPGA spokesperson told DailyMail.com by email. 'No purchase is needed to dip into social gambling establishments with sweepstakes rewards. Consumers never have to pay for a chance to win rewards. That absence of a purchase requirement - or" consideration" - is a vital difference in between social sweeps and standard online gambling websites like [gambling establishments](https://bikapsul.com/read-blog/1451_sport-betting-industry-aims-to-protect-itself.html).'<br>
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<br>Think about the manner in which McDonald's uses its yearly Monopoly video game to promote its food: Customers aren't paying to gamble, however rather they're buying hamburgers and french fries that use them the possibility to win lucrative prizes, such as a $1 million jackpot.<br>
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<br>And without a purchase requirement, or 'consideration', the game itself does not fulfill the definition of gambling in the US.<br>
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<br>'Sweepstakes are an enduring method for promoting all sort of everyday companies in the United States, everything from burgers to magazine subscriptions to coffee and home improvement stores,' the SPGA spokesperson informed DailyMail.com. 'Sweepstakes promotions are [regularly](http://touringtreffen.nl/read-blog/2366_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) 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 [sports betting](https://uptoscreen.com/read-blog/74148_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) industry insiders, that argument does not cut it.<br>
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<br>For starters, gaming attorney Daniel Wallach points out, McDonald's Monopoly video game doesn't run indefinitely. Rather, it has a distinct beginning and end, consequently recommending the sweepstakes is not the fast-food giant's main item. Instead, the sweepstakes is being utilized to promote genuine products like fries, shakes, and the Filet-O-Fish.<br>
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<br>'They don't last forever and they're normally not connected to casino-style video games of possibility,' Wallach informed DailyMail.com. 'They're just cash free gifts.<br>
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<br>'The sweepstakes [casinos] possess none of the qualities frequently associated with McDonald's-style sweepstakes promos,' Wallach continued. 'Besides running in perpetuity, the sweepstakes gambling establishments provide" casino-like" payments, typically 80 percent or more of earnings, whereas the normal payout percentage for a short-term promotional sweepstakes is a minor share of the income made by the business [normally less than one percent]'<br>
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<br>[Wallach fasts](https://infinirealm.com/read-blog/8281_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) to liken the online social sweeps casinos to the internet coffee shops that sprang up in Florida, offering clients the opportunity to play casino-style games for real prizes. Many of those brick-and-mortar establishments have because been shuttered over claims of unlawful gaming.<br>
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<br>DJ Khaled is amongst a number of star spokespeople for VGW's Global Poker brand<br>
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<br>Now, Wallach argues, social sweeps casinos ought to face comparable analysis.<br>
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<br>'These distinctions are not arbitrary,' Wallach said of social sweeps casinos. 'They have repeatedly been cited by courts and state chief law officer as essential consider figuring out that a sweepstakes promo was in truth a guise for illegal gaming.'<br>
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<br>Among the casino market's leading trade organizations, the American Gaming Association, is now pressing legislators to investigate sweepstakes operators and, in many cases, enact new legislation on the concern.<br>
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<br>'Consumers are being denied of securities and states are forgoing substantial tax and income chances as this [gaming replaces](https://customerscomm.com/read-blog/3721_missouri-sports-betting-ballot-measure-approved-by-voters.html) that carried out through controlled channels,' checked out a well-circulated AGA memo.<br>
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<br>And after that there are the complainants who have sued 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 admitting any wrongdoing, according to the Washington Post. Meanwhile VGW accepted pay $11.75 million in one class-action claim, stating the settlement was made to prevent legal expenses and continued litigation.<br>
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<br>[Michael Phelps](http://www.vmeste-so-vsemi.ru/wiki/%D0%A3%D1%87%D0%B0%D1%81%D1%82%D0%BD%D0%B8%D0%BA:LizzieCpm1853466) has signed a handle the VGW Group, which owns Global Poker<br>
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<br>In the current claim, which is mostly similar to its predecessors, New York state locals Lamar Prater and Rebecca Pratt both declare to have lost well over $1,000 to VGW, which is described in the filing as an 'prohibited [sports betting](https://demo.wowonderstudio.com/read-blog/2637_things-you-need-to-know-about-rafting-adventures.html) business. '<br>
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<br>Apple and Google have actually likewise been called as accuseds in lawsuits for hosting the sweepstakes sites. But unlike VGW, neither tech business responded to DailyMail.com's demand for remark.<br>
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<br>'We generally don't comment on matters before the courts,' a VGW spokesperson informed DailyMail.com through email. 'However, we note that this claim has actually only simply been filed with the court and VGW has actually not been officially served.<br>
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<br>'We have complete self-confidence in our compliance with all laws and guidelines where we operate, and stay confident about the future,' the representative continued. ['We continue](https://dev.fleeped.com/read-blog/52_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) to offer our free-to-play games throughout the majority of North America, as we have for more than a decade, developing not just terrific video games, user experiences and home entertainment, however also ensuring this is done safely, responsibly and at the highest 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 games industry (and the US more broadly), and our basic practice is that we plan to intensely defend any claim which might be brought versus us.'<br>
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<br>The problems in between [traditional online](https://tartar.app/read-blog/1669_things-you-need-to-understand-about-rafting-adventures.html) gaming and sweepstakes casinos might show troublesome for some star endorsers.<br>
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<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 conventional gaming titans like FanDuel and DraftKings.<br>
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<br>'It's paradoxical that expert athletes are hawking unlawful [sports betting](https://blablasell.com/read-blog/11910_missouri-sports-betting-ballot-measure-approved-by-voters.html) wagering 'sweeps' sites while at the exact same time the leagues wish to project a strong stance versus prohibited [sports betting](https://www.heesah.com/read-blog/2212_the-ins-and-outs-of-betting-on-the-nfl-draft.html) - particularly when attempting to tamp down the periodic [sports betting](https://netgork.com/read-blog/110105_online-betting-firms-gamble-on-soccer-mad-nigeria.html) scandal,' Glaser told DailyMail.com.<br>
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<br>It was just eight months ago that Toronto Raptors forward Jontay Porter got a lifetime restriction from the NBA over accusations he conspired with bettors. However, to be clear, Porter's scandal is unassociated to anything including social or sweepstakes casinos.<br>
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<br>Along with VGW, Apple and Google are being demanded hosting apparently illegal [sports betting](https://wolvesbaneuo.com/wiki/index.php/User:BlytheBir0323) websites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a significant concern for leagues such as the NBA.<br>
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<br>'I 'd anticipate that a league crackdown on professional athletes backing sweepstakes websites refers when, not if,' Glaser included.<br>
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<br>Neither an NBA spokesman nor the players' representatives reacted to DailyMail.com's ask for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise overlooked to react to DailyMail.com e-mails.<br>
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<br>Asked if their star endorsers have a duty to explain to consumers the distinctions and similarities in between iGaming and sweepstakes gambling establishments, VGW insisted there is absolutely nothing more that needs to be done.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>'We have complete confidence in our influencer and ambassadorial partnerships, and our service practices more broadly,' the [spokesperson stated](https://voggisper.com/read-blog/1230_how-fantasy-betting-app-development-companies-and-sports-developers.html). 'A few of our worths are" our players precede" and" we do what's right", and we put our worths at the core of everything we do.'<br>
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<br>Glaser, an outspoken opponent of sweepstakes sites, sees things differently.<br>
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<br>'Celebrities who lend their names to shady unlawful gaming sites are, at a minimum, putting their [reputations](https://surgiteams.com/index.php/User:ClaudioAlberts) at risk along with courting civil and class actions by customers who allege 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 assisting in prohibited gambling.'<br>
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