Add Sweepstakes Casino Controversy - And Celebrities' All-important Role
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[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)<br>The smiling faces of Paris Hilton and Ryan Seacrest made [surprise](https://sportstalkhub.com/read-blog/20463_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) looks before the Louisiana Senate for Friday's hearing on prohibited gaming.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>No, they weren't personally in presence, but the world-famous stars were conspicuously included in a slide presentation on social and sweepstakes gambling establishments - the controversial websites using both free casino-style video games and financially rewarding prizes, such as money, gift cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anyone can 'bet totally free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>The sites are just two cogs in the that now finds itself besieged by lawsuits. In the eyes of numerous video gaming corporations, not to mention lawsuit plaintiffs and state regulators, sweepstakes gambling establishments act as conventional casinos, just without the oversight, consumer defenses and tax laws. So not only can they avoid the steep 24-percent federal [sports betting](https://wiki.snooze-hotelsoftware.de/index.php?title=Benutzer:LienODonnell) levy, however sweepstakes operators [aren't subject](https://taar.me/read-blog/8459_how-much-are-americans-spending-on-sports-betting.html) to regulative 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 revenue last year alone. Now the company deals with allegations of illegal gaming in a New york city lawsuit that claims VGW uses star endorsers to 'create a veneer of legitimacy' around its item. (See VGW's statement listed below)<br>
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<br>'I'm not exactly sure" if you don't trust us, you can trust Paris Hilton" is a winning message for companies running multibillion-dollar illegal 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>
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<br>Sweepstakes endorsers consist of a variety of celebs 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 traditional gambling and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, one of many sweepstakes casinos found online<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Ryan Seacrest advises fans to play at Chumba Casino, where many - however not all [- video](https://chat.app8station.com/read-blog/3637_things-you-need-to-understand-about-rafting-adventures.html) games are totally free<br>
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<br>Drake has a deal with social sweeps casino, Stake, that he regularly touts on social networks<br>
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<br>Read More<br>
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<br>Donald Trump 'set to call NBA team owner as US ambassador to Italy'<br>
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<br>Instead, ads typically focus around the social element of the casinos, while leaving out the [potential](https://sfqatest.sociofans.com/read-blog/713_for-sports-gambling-to-be-legalised.html) for actual [sports betting](https://www.ayuujk.com/read-blog/87_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) losses.<br>
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<br>Others lure clients with promises of rewards. One such operator, Stake, ran a social media ad flaunting Drake's cars, airplanes and estates before rotating to footage of the rap artist playing online casino-style games.<br>
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<br>'Daddy, why do we have so much cash?' check out the first caption on the screen.<br>
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<br>Another caption discussed: 'Because I never ever provided up.'<br>
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<br>The disparity in between [sports betting](https://mediawiki1263.00web.net/index.php/User:Suzanne3238) sites and social or sweepstakes casinos is a bit complex, however operators of the latter insist they're not involved with the previous.<br>
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<br>A spokesperson for a market trade group, the Social and Promotional Gaming Association (SPGA), discussed its members are not in [direct competitors](https://doum.cn/read-blog/2194_enhance-your-business-opportunities-with-efficient-sports-apps.html) with online casinos and sportsbooks. Furthermore, according to SPGA information, the majority of the gamers on social-sweepstakes gambling establishments are [sports betting](https://issosyal.com/read-blog/10042_how-to-attract-users-to-my-fantasy-sports-platform.html) totally free.<br>
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<br>'Most social sweeps clients never ever make a purchase,' the SPGA spokesperson told DailyMail.com. 'The minority of consumers who make purchases do so in quantities far smaller than the typical deposit or bet size at real-money online gambling websites.'<br>
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<br>Social gambling establishments use clients a possibility to play casino-style games with friends. Players have the choice to purchase worthless currency often referred to as 'gold coins,' which can not be exchanged for real cash, however can be used to unlock numerous features within the video games.<br>
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<br>But within the world of social gambling establishments exists sweepstakes gaming, allowing consumers to obtain other currency known 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](https://islider.ru/read-blog/41243_for-sports-gambling-to-be-legalised.html) losses, like the ones declared by complainants in Florida, Georgia, New Jersey and New York. One player informed the Washington Post he lost more than $100,000 on sweepstakes gambling establishments in the past year after continuing to buy 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 Worldwide Poker event<br>
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<br>Social sweeps gambling establishment Stake ran an ad displaying Drake's automobiles, planes 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>
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<br>Traditional online gambling establishments are prohibited in all but seven states, which has helped to fuel the appeal of sweepstakes gambling establishments.<br>
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<br>Anyone over the age of 18 can access the sweepstakes websites, which don't need normally need recognition. However, sites like Chumba will request for IDs from players trying to withdraw any funds.<br>
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<br>Many websites, like the crypto-compatible Stake, [permit customers](https://nuo18.lt/read-blog/68705_things-you-need-to-understand-about-rafting-adventures.html) to submit mail-in requests for complimentary sweeps coins, provided the gamers follow painfully specific directions. What's more, gamers are typically rewarded with sweeps coins merely for signing up, thereby offering them a factor to attempt their hands at any variety of casino games for a chance to win - or lose - real cash.<br>
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<br>So why are sweepstakes websites permitted to operate in 48 states, while online casinos are banned in all but 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 merely a way of promoting their support.<br>
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<br>['Social sweepstakes](http://famedoot.in/read-blog/84_for-sports-gambling-to-be-legalised.html) video games are just a kind of online entertainment,' an SPGA spokesperson told DailyMail.com by e-mail. 'No purchase is needed to play at social gambling establishments with sweepstakes prizes. Consumers never ever have to pay for a chance to win prizes. That absence of a purchase requirement - or" consideration" - is an essential distinction between social sweeps and conventional online gambling websites like casinos.'<br>
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<br>Think about the method that McDonald's uses its annual Monopoly video game to promote its food: Customers aren't paying to gamble, but rather they're purchasing hamburgers and french fries that use them the opportunity to win profitable rewards, such as a $1 million jackpot.<br>
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<br>And without a purchase requirement, or 'factor to consider', the game itself does not meet the meaning of [sports betting](https://twoplustwoequal.com/read-blog/58988_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) in the US.<br>
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<br>'Sweepstakes are a long-standing approach for promoting all kinds of daily companies in the United States, everything from burgers to magazine memberships to coffee and home enhancement stores,' the SPGA spokesperson informed DailyMail.com. 'Sweepstakes promotions are routinely used by a who's who of home names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'<br>
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<br>But to many [sports betting](https://customerscomm.com/read-blog/3729_online-betting-firms-gamble-on-soccer-mad-nigeria.html) market experts, that argument doesn't cut it.<br>
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<br>For starters, video gaming lawyer Daniel Wallach explains, McDonald's Monopoly video game does not run indefinitely. Rather, it has a distinct start and end, thereby suggesting the sweepstakes is not the fast-food giant's main product. Instead, the sweepstakes is being used to promote genuine products like fries, shakes, and the Filet-O-Fish.<br>
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<br>'They don't last permanently and they're normally not connected to casino-style games of possibility,' Wallach informed DailyMail.com. 'They're simply money giveaways.<br>
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<br>'The sweepstakes [gambling establishments] have none of the characteristics frequently related to McDonald's-style sweepstakes promotions,' Wallach [continued](https://wiki.tld-wars.space/index.php/Utilisateur:DeclanBoettcher). ['Besides running](https://letustalk.co.in/read-blog/11471_things-you-need-to-know-about-rafting-adventures.html) in all time, the sweepstakes gambling establishments provide" casino-like" payouts, generally 80 percent or more of incomes, whereas the normal payment percentage for a temporary marketing sweepstakes is a trivial share of the income made by the business [generally less than one percent]'<br>
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<br>Wallach is quick to liken the online social sweeps gambling establishments to the web coffee shops that sprang up in Florida, providing clients the possibility to play casino-style video games for [genuine rewards](https://moonifie.com/read-blog/1423_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html). A lot of those brick-and-mortar establishments have considering that been shuttered over allegations of illegal gambling.<br>
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<br>DJ Khaled is amongst several celebrity spokespeople for VGW's Global Poker brand name<br>
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<br>Now, Wallach argues, social sweeps gambling establishments must deal with 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 key factors in determining that a sweepstakes promo remained in fact a guise for illegal gaming.'<br>
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<br>Among the gambling establishment market's [leading](https://twoplustwoequal.com/read-blog/58965_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) trade organizations, the American Gaming Association, is now pressing lawmakers to [investigate sweepstakes](https://sportstalkhub.com/read-blog/20463_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) operators and, in many cases, enact brand-new legislation on the problem.<br>
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<br>'Consumers are being denied of defenses and states are giving up substantial tax and income opportunities as this [sports betting](https://youfurry.com/read-blog/37811_things-you-need-to-know-about-rafting-adventures.html) changes that conducted through controlled 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 gambling establishments in more than a lots states.<br>
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<br>Sweepstakes casino operators paid a combined $14.2 million in four separate cases in Kentucky without admitting any misbehavior, according to the Washington Post. Meanwhile VGW concurred to pay $11.75 million in one class-action lawsuit, [stating](https://theavtar.in/read-blog/30185_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) the settlement was made to avoid legal expenses and continued litigation.<br>
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<br>Michael Phelps has actually signed an offer with the VGW Group, which owns Global Poker<br>
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<br>In the current suit, which is largely similar to its predecessors, New York state locals Lamar Prater and Rebecca Pratt both claim to have actually lost well over $1,000 to VGW, which is explained in the filing as an 'illegal gaming business. '<br>
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<br>Apple and Google have actually likewise been named as offenders in claims for hosting the sweepstakes websites. But unlike VGW, neither tech business responded to DailyMail.com's ask for remark.<br>
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<br>'We typically do not discuss matters before the courts,' a VGW spokesperson informed DailyMail.com via e-mail. 'However, we keep in mind that this claim has actually only simply been submitted with the court and VGW has actually not been [officially served](https://grade1d.smaportal.ae/read-blog/2438_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html).<br>
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<br>'We have complete confidence in our compliance with all laws and guidelines where we run, and remain positive about the future,' the representative continued. 'We continue to offer our free-to-play games across many of The United States and Canada, as we have for more than a decade, creating not only terrific video games, user experiences and entertainment, but likewise guaranteeing this is done safely, responsibly and at the highest level of requirements.<br>
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<br>'More broadly, we 'd repeat that class actions and other lawsuits and arbitrations are relatively common throughout the online social video games market (and the US more broadly), and our standard practice is that we plan to intensely defend any claim which might be brought versus us.'<br>
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<br>The issues between conventional online gaming and sweepstakes casinos could prove [troublesome](https://accc.rcec.sinica.edu.tw/mediawiki/index.php?title=User:DemiElmer2043) for some celebrity 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 while the NBA is partnered with conventional gaming titans like FanDuel and DraftKings.<br>
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<br>'It's ironic that expert athletes are hawking prohibited [sports betting](https://gazanour.com/read-blog/7862_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) wagering 'sweeps' sites while at the same time the leagues wish to forecast a strong stance against prohibited [sports betting](https://www.athleticzoneforum.com/read-blog/754_sport-betting-industry-seeks-to-protect-itself.html) - particularly when trying to tamp down the periodic gaming scandal,' Glaser told DailyMail.com.<br>
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<br>It was simply 8 months ago that Toronto Raptors forward Jontay Porter received a lifetime ban from the NBA over allegations he conspired with bettors. However, to be clear, Porter's scandal is unrelated to anything including social or sweepstakes casinos.<br>
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<br>Along with VGW, Apple and Google are being sued for hosting allegedly [illegal](https://juryi.sn/read-blog/12074_warner-bros-discovery-sets-stage-for-potential-cable-deal-by.html) [sports betting](https://loveyou.az/read-blog/20091_sport-betting-industry-aims-to-protect-itself.html) websites<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 expect that a league crackdown on professional athletes backing sweepstakes websites is a matter of when, not if,' Glaser included.<br>
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<br>Neither an NBA spokesman nor the gamers' agents responded to DailyMail.com's requests for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise disregarded to react to DailyMail.com e-mails.<br>
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<br>Asked if their celeb endorsers have a responsibility to describe to clients the distinctions and similarities in between iGaming and sweepstakes gambling establishments, VGW firmly insisted there is absolutely nothing more that needs to be done.<br>
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<br>'We have complete confidence in our influencer and ambassadorial collaborations, and our company practices more broadly,' the spokesperson said. 'A few of our values 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 challenger of sweepstakes sites, sees things in a different way.<br>
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<br>'Celebrities who lend their names to dubious unlawful gambling websites are, at a minimum, putting their credibilities at risk along with courting civil and class actions by customers who declare harm,' Glaser stated. 'There is likewise some risk that state regulators and state lawyers basic rope celeb endorsers into enforcement efforts for facilitating prohibited gaming.'<br>
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