Add Sweepstakes Casino Controversy - And Celebrities' All-important Role
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[bit.ly](https://bit.ly/AviatorGameOnlineBET9JA)<br>The smiling faces of Paris Hilton and Ryan Seacrest made surprise looks before the Louisiana Senate for Friday's hearing on illegal gambling.<br>[bet9ja.com](https://landing.bet9ja.com/aviator-bet9ja?btag=yohaig&promocode=yohaig)
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<br>No, they weren't personally in participation, but the world-famous celebrities were conspicuously consisted of in a slide presentation on social and sweepstakes casinos - the questionable sites using both free casino-style video games and financially rewarding rewards, such as cash, present cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'play for totally free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>
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<br>The websites are just 2 cogs in the multibillion-dollar industry that now finds itself besieged by claims. In the eyes of numerous gaming corporations, not to discuss lawsuit plaintiffs and state regulators, sweepstakes casinos serve as standard casinos, just without the oversight, customer securities and tax laws. So not only can they avoid the steep 24-percent federal gambling levy, however sweepstakes operators aren't subject to regulatory hurdles 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 profits in 2015 alone. Now the company faces accusations of prohibited gaming in a New York lawsuit that claims VGW utilizes [celebrity endorsers](https://petrolheads.co.za/read-blog/753_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) to 'develop a veneer of legitimacy' around its item. (See [VGW's statement](https://bleezlabs.com/demo/quora/adonis/index.php?qa=498515&qa_1=score-wins-sports-betting-software-drives-growth-engagement) 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 business running 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, informed DailyMail.com.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Sweepstakes endorsers consist of a variety of stars from gambling lovers Drake and DJ Khaled to swimmer Michael Phelps, along with NBA stars Karl-Anthony Towns and Paul George - none of whom provide any differences in between standard gaming and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, one of many sweepstakes casinos found online<br>
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<br>Ryan Seacrest urges fans to dip into Chumba Casino, where lots of - however not all - video games are free<br>
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<br>Drake has a deal with social sweeps casino, Stake, that he routinely touts on social networks<br>
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<br>Read More<br>
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<br>[Donald Trump](https://complexityzoo.net/User:DaniloIngram1) 'set to call NBA group owner as US ambassador to Italy'<br>
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<br>Instead, ads usually center around the social element of the gambling establishments, while leaving out the potential for actual gaming losses.<br>
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<br>Others tempt consumers with guarantees of rewards. One such operator, Stake, ran a social media ad showing off Drake's vehicles, aircrafts and estates before rotating to footage of the rapper playing online casino-style games.<br>
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<br>'Daddy, why do we have a lot cash?' check out the first caption on the screen.<br>
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<br>Another caption described: 'Because I never provided up.'<br>
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<br>The inconsistency in between gambling websites and social or sweepstakes gambling establishments is a bit intricate, however operators of the latter insist they're not involved with the former.<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, the majority of the gamers on social-sweepstakes casinos are [sports betting](http://wiki.myamens.com/index.php/User:BerylBock5) complimentary.<br>
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<br>'Most social sweeps customers never make a purchase,' the SPGA spokesperson informed DailyMail.com. 'The minority of customers who make purchases do so in amounts far smaller than the normal deposit or bet size at real-money online gambling sites.'<br>
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<br>Social casinos offer consumers a chance to play casino-style video games with pals. Players have the choice to purchase valueless [currency](https://chat.dimersoft.org/read-blog/3998_the-ins-and-outs-of-betting-on-the-nfl-draft.html) often referred to as 'gold coins,' which can not be exchanged for real money, however can be used to open different functions within the video games.<br>
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<br>But within the world of social casinos exists sweepstakes gaming, enabling clients to get other currency called 'sweeps coins' that can be exchanged for money or other prizes.<br>
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<br>And therein lies the potential for monetary losses, like the ones declared by plaintiffs 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 previous year after continuing to buy 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 casino Stake ran an ad flaunting Drake's automobiles, aircrafts and mansions<br>
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<br>Karl-Anthony Towns of the New York Knicks is another [NBA star](https://si-sudagro.net/cdc-hiruak/index.php?qa=268074&qa_1=tennessee-sports-betting-top-4-legal-betting-sites-in-2024) plugging VGW's Global Poker<br>
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<br>Traditional online casinos are banned in all however 7 states, which has helped to sustain the appeal of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes websites, which don't need typically require identification. However, websites like Chumba will ask for IDs from players trying to withdraw any funds.<br>
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<br>Many sites, like the crypto-compatible Stake, permit clients to send mail-in requests for complimentary sweeps coins, supplied the gamers follow painfully particular instructions. What's more, players are typically rewarded with sweeps coins merely for registering, consequently providing a reason to attempt their hands at any variety of gambling establishment games for a chance to win - or lose - real cash.<br>
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<br>So why are sweepstakes sites allowed to operate in 48 states, while [online gambling](http://wiki.myamens.com/index.php/User:AraRhea00779024) establishments are banned in all however 7?<br>
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<br>According to the stakeholders, their product is the totally free casino-style video gaming, and the real-stakes competitors is just a method of promoting their support.<br>
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<br>'Social sweepstakes games are simply a type of online home entertainment,' an SPGA representative told DailyMail.com by email. 'No purchase is required to play at social casinos with sweepstakes rewards. Consumers never ever need to spend for an opportunity to win prizes. That absence of a purchase requirement - or" factor to consider" - is a vital difference between social sweeps and traditional online gambling sites like gambling establishments.'<br>
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<br>Think about the method that McDonald's uses its yearly Monopoly game to promote its food: Customers aren't paying to gamble, however rather they're buying hamburgers and fries that provide them the chance to win profitable prizes, such as a $1 million prize.<br>
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<br>And without a purchase requirement, or 'consideration', the video game itself doesn't fulfill the definition of gambling in the US.<br>
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<br>'Sweepstakes are a long-standing approach for promoting all kinds of in the United States, whatever from burgers to publication memberships to coffee and home enhancement stores,' the SPGA spokesperson informed DailyMail.com. 'Sweepstakes promos are regularly utilized by a who's who of family 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 starters, gaming attorney Daniel Wallach explains, McDonald's Monopoly video game does not run forever. Rather, it has a distinct beginning and end, therefore recommending the sweepstakes is not the fast-food giant's primary item. Instead, the sweepstakes is being used to promote real products like french fries, shakes, and the Filet-O-Fish.<br>
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<br>'They do not last forever and they're typically not connected to casino-style video games of chance,' Wallach told DailyMail.com. 'They're just cash free gifts.<br>
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<br>'The sweepstakes [casinos] possess none of the characteristics commonly connected with McDonald's-design sweepstakes promos,' Wallach [continued](https://complexityzoo.net/User:DaniloIngram1). 'Besides running in all time, the sweepstakes gambling establishments use" casino-like" payouts, normally 80 percent or more of profits, whereas the typical payout portion for a momentary advertising sweepstakes is a minor share of the earnings earned by the company [normally less than one percent]'<br>
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<br>Wallach fasts to compare the online social sweeps casinos to the internet coffee shops that sprang up in Florida, providing customers the chance to play casino-style games for real rewards. A number of those brick-and-mortar facilities have actually since been shuttered over accusations of prohibited gaming.<br>
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<br>DJ Khaled is among several celebrity spokespeople for VGW's Global Poker brand name<br>
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<br>Now, [Wallach](https://complexityzoo.net/User:UnaQty8633887) argues, [social sweeps](https://we2chat.net/read-blog/29435_online-betting-firms-gamble-on-soccer-mad-nigeria.html) gambling establishments should face comparable examination.<br>
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<br>'These distinctions are not arbitrary,' Wallach said of social sweeps gambling establishments. 'They have actually repeatedly been cited by courts and state lawyer generals as essential aspects in identifying that a sweepstakes promo was in reality a guise for unlawful [sports betting](https://chat.dimersoft.org/read-blog/4038_just-how-much-are-americans-investing-in-sports-betting.html).'<br>
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<br>One of the gambling establishment industry'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>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>'Consumers are being deprived of protections and states are giving up [considerable tax](https://disgaeawiki.info/index.php/User:GlennaWhinham4) and earnings chances as this gambling replaces that performed through managed channels,' read a well-circulated AGA memo.<br>
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<br>And after that there are the complainants who have taken legal action against social casinos in more than a dozen states.<br>
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<br>Sweepstakes gambling establishment operators paid a combined $14.2 million in 4 different cases in Kentucky without admitting any wrongdoing, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action claim, saying the settlement was made to avoid legal expenses and continued lawsuits.<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 most recent claim, which is mainly similar to its predecessors, New York state homeowners 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 gambling enterprise. '<br>
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<br>Apple and Google have also been named as [accuseds](https://wiki.project1999.com/User:TabathaFirkins) in suits for hosting the sweepstakes websites. But unlike VGW, neither tech business responded to DailyMail.com's ask for comment.<br>
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<br>'We generally do not talk about matters before the courts,' a VGW representative told DailyMail.com through email. 'However, we note that this claim has only simply been submitted 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 regulations where we operate, and remain confident about the future,' the representative continued. 'We [continue](https://spcreator.com/read-blog/12_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) to offer our free-to-play video games across most of North America, as we have for more than a years, producing not only excellent games, user experiences and home entertainment, however likewise ensuring this is done safely, responsibly and at the greatest level of requirements.<br>
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<br>'More broadly, we 'd reiterate that class actions and other lawsuits and arbitrations are reasonably typical throughout the online social games industry (and the US more broadly), and our standard practice is that we plan to vigorously protect any claim which might be brought against us.'<br>
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<br>The concerns between conventional online [sports betting](http://wiki.myamens.com/index.php/User:AraRhea00779024) and sweepstakes gambling establishments might prove bothersome for some celeb 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 standard gaming titans like FanDuel and DraftKings.<br>
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<br>'It's paradoxical that professional athletes are hawking unlawful [sports betting](https://bnsgh.com/read-blog/602_why-every-cricket-fan-need-to-try-the-all-cricket-id-gaming-platform.html) wagering 'sweeps' sites while at the same time the leagues wish to project a strong stance versus prohibited [sports betting](https://complexityzoo.net/User:DongBaudinet584) - 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 got 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 gambling establishments.<br>
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<br>In addition to VGW, Apple and Google are being demanded hosting presumably illegal [sports betting](https://marketchat.in/read-blog/2693_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) sites<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 endorsing sweepstakes sites refers when, not if,' Glaser added.<br>
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<br>Neither an NBA representative nor the players' agents reacted to DailyMail.com's demands for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise disregarded to react to DailyMail.com emails.<br>
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<br>Asked if their star endorsers have an obligation to explain to [consumers](https://myquora.myslns.com/index.php?qa=82279&qa_1=sports-minister-tracey-crouch-resigns-over-betting-crackdown) the differences and resemblances between iGaming and sweepstakes gambling establishments, VGW firmly insisted there is nothing more that requires to be done.<br>
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<br>'We have full self-confidence in our influencer and ambassadorial collaborations, and our organization practices more broadly,' the [spokesperson stated](http://wiki.myamens.com/index.php/User:HoseaBosanquet). 'Some of our worths are" our players precede" and" we do what's right", and we put our values at the core of everything we do.'<br>
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<br>Glaser, an outspoken opponent of sweepstakes websites, sees things in a different way.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>'Celebrities who lend their names to dubious unlawful [sports betting](https://ideezy.com/read-blog/608_just-how-much-are-americans-investing-in-sports-betting.html) websites are, at a minimum, putting their reputations at danger as well as courting civil and class actions by customers who allege harm,' Glaser said. 'There is also some risk that state regulators and state lawyers general rope star endorsers into enforcement efforts for facilitating illegal gambling.'<br>
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