New York shuts down 26 sweepstakes casinos in crackdown on illegal online gambling

New York Attorney General Letitia James has moved to shut down 26 online sweepstakes casinos operating in the state, asserting the platforms were offering illegal gambling services in violation of state law. The action follows an investigation by the Office of the Attorney General (OAG) in coordination with the New York State Gaming Commission.

The platforms, which offered users slot machines, table games, and sports betting using virtual sweepstakes coins that could be exchanged for cash or prizes, were determined to be operating without proper oversight or regulation. According to New York law, any gambling that involves risking something of value, including redeemable virtual coins, qualifies as illegal if it falls outside state-regulated channels.

“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” Attorney General James said. Her office issued cease and desist letters to the operators, prompting all 26 platforms to cease the sale of sweepstakes coins in New York.

These sites had allowed users to buy packages of virtual currency that included sweepstakes coins, which could then be used in games of chance and redeemed for cash or prizes such as gift cards.

The crackdown comes amid broader scrutiny of sweepstakes-style gaming, which has gained traction as an alternative to traditional gambling platforms. Unlike regulated casinos, sweepstakes casinos are not subject to audits, consumer protection standards, or financial solvency checks. This raises concerns over whether games are fair or whether winnings will be honored.

“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said Brian O’Dwyer, Chairman of the New York State Gaming Commission. “I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market. We encourage those of age who wish to gamble to do so with legal operators.”

Assemblywoman Woerner noted the risk to younger users. “These online sweepstakes games can serve as the on-ramp to problem gambling for teenagers, particularly,” she said. “I am grateful for the work of Attorney General James and her staff for shutting down 26 of these games.”

Legislative efforts have also been underway to ban such platforms. State Senator Joseph P. Addabbo, Jr. introduced Senate Bill 5935 in March, while Assemblywoman Carrie Woerner has supported a parallel bill in the Assembly. Though these bills have made limited progress, the Attorney General’s enforcement action may render further legislation unnecessary in the short term.

“At a time when illegal gambling, underage participation, and identity theft are soaring, it is deeply concerning that prohibited, unregulated, and unenforceable gambling entities are providing easy access to illegal gaming sites and obtaining personal information of unsuspecting New Yorkers,” Senator Addabbo said. 

“These so-called sweepstakes casinos not only put individuals at risk of fraud and financial exploitation, but they also create dangerous pathways for gambling addiction, especially among minors.”

Despite the crackdown, some platforms such as Crown Coins, LuckyBird.io, and WOW Vegas continue to list New York as an eligible location for play, though their status may change. Officials warn consumers to check terms and conditions and avoid unregulated operators.

Placing bets with sweepstakes coins carries significant risk, officials said, particularly because players have no assurance that the games are fair or that winnings will be paid. Attorney General James has advised all New York residents to avoid sweepstakes casinos altogether.

The list of platforms that have ceased operations in New York as a result of the cease and desist letters includes Chanced, Chumba, DingDingDing, Fliff, Fortune Coins, Fortune Wheelz, Funrize, FunzCity, Global Poker, Golden Hearts Games, High 5 Casino, Jackpota, Luckyland, McLuck, Mega Bonanza, NoLimitCoins, Play Fame, RealPrize, Sidepot, SpinBlitz, Sportzino, SweepSlots, Sweeptastic, TaoFortune, Yay Casino, and Zula Casino.