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 gambling.<br>
 <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 questionable sites providing both totally free casino-style 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 anyone can 'play for complimentary,' 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 industry that now finds itself besieged by lawsuits. In the eyes of lots of gaming corporations, not to discuss claim plaintiffs and state regulators, sweepstakes casinos act as conventional casinos, only without the oversight, consumer securities and tax laws. So not only can they avoid the high 24-percent federal gaming levy, however sweepstakes operators aren't subject to regulatory hurdles like anti-money laundering and responsible-gaming defenses.<br>
 <br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in income in 2015 alone. Now the business deals with allegations of illegal gaming in a New York claim that claims VGW utilizes celeb endorsers to 'create a veneer of legitimacy' around its item. (See VGW's statement below)<br>
 <br>'I'm not sure" if you don't trust us, you can trust Paris Hilton" is a winning message for companies running multibillion-dollar unlawful operations out of [locations](http://famedoot.in/read-blog/80_the-ins-and-outs-of-betting-on-the-nfl-draft.html) like Malta, Isle of Man, or US mail drops,' Friday's speaker, Howard Glaser of video gaming corporation Light & Wonder, told DailyMail.com.<br>
 <br>Sweepstakes endorsers consist of a series of celebrities from [sports betting](https://octomo.co.uk/read-blog/6502_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) lovers 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 standard gambling and sweepstakes play.<br>
 <br>Paris Hilton is seen plugging Wow Vegas, among many sweepstakes casinos discovered online<br>
 <br>Ryan Seacrest advises fans to dip into Chumba Casino, where many - but not all - games are free<br>
 <br>Drake has an offer with social sweeps gambling establishment, Stake, that he frequently touts on social networks<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>Find out more<br>
 <br>Donald Trump 'set to name NBA team owner as US ambassador to Italy'<br>
 <br>Instead, advertisements usually focus around the social element of the gambling establishments, while omitting the capacity for real gaming losses.<br>[bit.ly](https://bit.ly/AviatorGameOnlineBET9JA)
 <br>Others tempt consumers with guarantees of prizes. One such operator, Stake, ran a social networks ad displaying Drake's automobiles, planes and estates before pivoting to footage of the rapper playing online casino-style games.<br>
 <br>'Daddy, why do we have so much cash?' check out the first caption on the screen.<br>
 <br>Another caption discussed: 'Because I never quit.'<br>
 <br>The inconsistency in between gaming sites and social or sweepstakes casinos is a bit complicated, but operators of the latter insist they're not involved with the previous.<br>
 <br>A representative for a market trade group, the Social and Promotional Gaming Association (SPGA), described its members are not in direct competitors with online gambling establishments and sportsbooks. Furthermore, according to SPGA information, many of the players on social-sweepstakes casinos are [sports betting](https://www.contraband.ch/read-blog/41601_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) free.<br>
 <br>'Most social sweeps clients never ever purchase,' the SPGA spokesperson informed DailyMail.com. 'The minority of consumers who make purchases do so in  far smaller sized than the common deposit or wager size at real-money online [sports betting](https://younivix.com/read-blog/29883_why-every-cricket-fan-should-try-the-all-cricket-id-gaming-platform.html) websites.'<br>
 <br>Social casinos use clients an opportunity to play casino-style video games with good friends. Players have the choice to buy valueless currency frequently described as 'gold coins,' which can not be exchanged for genuine money, but can be used to open various features within the games.<br>
 <br>But within the world of social gambling establishments exists sweepstakes gaming, permitting customers to obtain other currency called 'sweeps coins' that can be exchanged for money or other rewards.<br>
 <br>And therein lies the capacity for financial losses, like the ones declared by plaintiffs in Florida, Georgia, New Jersey and New York City. One player informed the Washington Post he lost more than $100,000 on sweepstakes gambling establishments in the previous year after continuing to buy more coins in pursuit of money and other things of worth.<br>
 <br>The Philadelphia 76ers' Paul George is seen promoting a [Worldwide Poker](https://rca.co.id/read-blog/342_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) event<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
 <br>[Social sweeps](https://bundas24.com/read-blog/175547_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html) casino Stake ran an ad flaunting Drake's vehicles, planes and estates<br>
 <br>Karl-Anthony Towns of the New York City Knicks is another NBA star plugging VGW's Global Poker<br>
 <br>Traditional online gambling establishments are banned in all however seven states, which has helped to sustain the popularity of sweepstakes gambling establishments.<br>
 <br>Anyone over the age of 18 can access the sweepstakes sites, which do not need typically need identification. However, websites like Chumba will ask for IDs from players attempting to withdraw any funds.<br>
 <br>Many websites, like the crypto-compatible Stake, permit customers to submit mail-in ask for free sweeps coins, supplied the gamers follow painfully specific directions. What's more, gamers are often rewarded with sweeps coins simply for registering, therefore giving them a reason to attempt their hands at any number of gambling establishment games for a possibility to win - or lose - real cash.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
 <br>So why are sweepstakes websites permitted to operate in 48 states, while online gambling establishments are prohibited in all however 7?<br>
 <br>According to the stakeholders, their item is the totally free casino-style video gaming, and the real-stakes competitors is simply a way of promoting their support.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
 <br>'Social sweepstakes games are just a type of online home entertainment,' an SPGA representative [informed DailyMail](https://farmwoo.com/read-blog/9544_why-every-cricket-fan-should-try-the-all-cricket-id-gaming-platform.html).com by e-mail. 'No purchase is required to dip into social gambling establishments with sweepstakes rewards. Consumers never have to pay for an opportunity to win rewards. That absence of a purchase requirement - or" consideration" - is an essential difference in between social sweeps and traditional online gambling sites like gambling establishments.'<br>
 <br>Consider the manner in which McDonald's uses its annual Monopoly video game to [promote](https://dev.fleeped.com/read-blog/52_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) its food: Customers aren't paying to bet, however rather they're purchasing hamburgers and french fries that provide them the opportunity to win lucrative rewards, such as a $1 million jackpot.<br>
 <br>And without a purchase requirement, or 'factor to consider', the video game itself doesn't satisfy the [definition](https://realhindu.in/read-blog/21475_sport-betting-industry-wants-to-protect-itself.html) of [sports betting](https://octomo.co.uk/read-blog/6512_things-you-need-to-understand-about-rafting-adventures.html) in the US.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>'Sweepstakes are a long-standing approach for promoting all sort of daily companies in the United States, everything from burgers to magazine memberships to coffee and home enhancement shops,' the SPGA representative told DailyMail.com. 'Sweepstakes promos are routinely used by a who's who of household names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
 <br>But to many [sports betting](https://youfurry.com/read-blog/37999_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html) industry experts, that argument doesn't cut it.<br>
 <br>For beginners, video gaming lawyer Daniel Wallach points out, McDonald's Monopoly game doesn't run forever. Rather, it has a distinct beginning and end, thus suggesting 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>
 <br>'They don't last permanently and they're typically not connected to casino-style games of chance,' Wallach told DailyMail.com. 'They're just money free gifts.<br>
 <br>'The sweepstakes [gambling establishments] have none of the characteristics commonly connected with McDonald's-style sweepstakes promotions,' Wallach continued. 'Besides running in all time, the sweepstakes casinos use" casino-like" payments, usually 80 percent or more of profits, whereas the typical payout percentage for a momentary promotional sweepstakes is an unimportant share of the revenue made by the company [usually less than one percent]'<br>
 <br>Wallach is quick to liken the online social sweeps casinos to the web coffee shops that emerged in Florida, using customers the possibility to play casino-style video games for real prizes. A number of those brick-and-mortar establishments have actually considering that been shuttered over accusations of prohibited [sports betting](https://social.mirrororg.com/read-blog/7698_how-fantasy-betting-app-development-companies-and-sports-developers.html).<br>
 <br>DJ Khaled is among numerous celebrity spokespeople for VGW's Global Poker brand<br>
 <br>Now, Wallach argues, social sweeps gambling establishments ought to face comparable analysis.<br>
 <br>'These distinctions are not approximate,' Wallach stated of social sweeps [casinos](http://wiki-tb-service.com/index.php?title=Benutzer:AbigailNewell5). 'They have actually repeatedly been pointed out by courts and state chief law officer as crucial consider identifying that a sweepstakes promotion was in truth a guise for unlawful gambling.'<br>
 <br>One of the gambling establishment market's leading trade companies, the American Gaming Association, is now pressing lawmakers to investigate sweepstakes operators and, in many cases, enact new legislation on the concern.<br>
 <br>'Consumers are being deprived of [defenses](https://truthbook.social/read-blog/8628_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) and states are giving up considerable tax and profits chances as this gaming changes that conducted through managed channels,' read a well-circulated AGA memo.<br>
 <br>And then there are the plaintiffs who have taken legal action against social casinos in more than a dozen states.<br>
 <br>Sweepstakes casino operators paid a combined $14.2 million in 4 separate cases in Kentucky without confessing any misdeed, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action claim, stating the settlement was made to prevent legal expenses and continued lawsuits.<br>
 <br>Michael Phelps has signed a handle the VGW Group, which owns Global Poker<br>
 <br>In the most current suit, which is largely similar to its predecessors, New york city state residents Lamar Prater and Rebecca Pratt both declare to have actually lost well over $1,000 to VGW, which is explained in the filing as an 'prohibited gambling [enterprise](https://reckoningz.com/how-much-are-americans-investing-in-sports-betting/). '<br>
 <br>Apple and Google have actually also been called as accuseds in suits for hosting the sweepstakes websites. But unlike VGW, neither tech business reacted to DailyMail.com's ask for comment.<br>
 <br>'We normally don't talk about matters before the courts,' a VGW spokesperson informed DailyMail.com through e-mail. 'However, we keep in mind that this claim has actually only simply been filed with the court and VGW has not been officially served.<br>
 <br>'We have full confidence in our compliance with all laws and guidelines where we operate, and remain positive about the future,' the representative continued. 'We continue to use our free-to-play video games throughout most of North America, as we have for more than a years, creating not only terrific games, user experiences and home entertainment, but also guaranteeing this is done securely, responsibly and at the greatest level of requirements.<br>
 <br>'More broadly, we 'd restate that class actions and other litigations and arbitrations are relatively common throughout the online social games industry (and the US more broadly), and our standard practice is that we plan to strongly safeguard any claim which might be brought versus us.'<br>
 <br>The problems between traditional online gaming and sweepstakes gambling establishments might prove troublesome 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 gaming titans like FanDuel and DraftKings.<br>
 <br>'It's ironic that expert athletes are hawking unlawful [sports betting](https://social.ppmandi.com/read-blog/237_online-betting-firms-gamble-on-soccer-mad-nigeria.html) wagering 'sweeps' sites while at the very same time the leagues desire to forecast a strong stance against unlawful gaming - especially when trying to tamp down the occasional [sports betting](https://wiki.vifm.info/index.php/User:LeonardGallegos) scandal,' Glaser told DailyMail.com.<br>
 <br>It was simply eight months ago that Toronto Raptors forward Jontay Porter got a life time ban from the NBA over accusations he conspired with gamblers. However, to be clear, Porter's scandal is unrelated to anything including social or sweepstakes casinos.<br>
 <br>Together with VGW, Apple and Google are being demanded hosting presumably prohibited gambling websites<br>
 <br>Regardless, Glaser sees sweepstakes casinos as a major problem for leagues such as the NBA.<br>
 <br>'I 'd expect that a league crackdown on athletes backing sweepstakes sites refers when, not if,' Glaser added.<br>
 <br>Neither an NBA spokesman nor the [players' agents](https://kiigasofthub.com/read-blog/10137_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html) reacted to DailyMail.com's demands for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps also neglected to react to DailyMail.com e-mails.<br>
 <br>Asked if their [celebrity endorsers](https://wiki.monnaie-libre.fr/wiki/Utilisateur:BrandenFrawley) have a responsibility to explain to consumers the distinctions and similarities in between iGaming and sweepstakes casinos, VGW insisted there is nothing more that needs to be done.<br>
 <br>'We have complete confidence in our influencer and ambassadorial partnerships, and our [business practices](https://bikapsul.com/read-blog/1453_just-how-much-are-americans-spending-on-sports-betting.html) more broadly,' the [spokesperson](https://innovator24.com/read-blog/23442_just-how-much-are-americans-investing-in-sports-betting.html) said. 'Some of our worths are" our players 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 websites, sees things differently.<br>
 <br>'Celebrities who provide their names to dubious unlawful gaming sites are, at a minimum, putting their credibilities at risk along with courting civil and class actions by consumers who allege damage,' Glaser said. 'There is likewise some threat that state regulators and state attorney generals of the United States rope celebrity endorsers into enforcement efforts for facilitating prohibited gaming.'<br>
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