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 appearances 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 attendance, but the world-famous stars were conspicuously consisted of in a slide discussion on social and sweepstakes gambling establishments - the questionable sites using both totally [free casino-style](https://www.social.united-tuesday.org/read-blog/19460_compare-amp-review-oddsjet-de.html) video games and rewarding rewards, such as money, present cards or cryptocurrency. In one ad, the fist-pumping Seacrest is seen plugging Chumba Casino, where anyone can 'play for 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 multibillion-dollar industry that now finds itself besieged by suits. In the eyes of many gaming corporations, not to mention claim plaintiffs and state regulators, sweepstakes casinos function as standard casinos, just without the oversight, customer protections and tax laws. So not only can they [prevent](https://collegetalks.site/read-blog/11756_how-fantasy-betting-app-development-companies-and-sports-developers.html) the steep 24-percent federal [sports betting](https://tartar.app/read-blog/1730_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) levy, but sweepstakes operators aren't subject to regulatory difficulties like anti-money laundering and responsible-gaming securities.<br>
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<br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in profits in 2015 alone. Now the business deals with [allegations](https://wiki.vifm.info/index.php/User:BerndLevey) of prohibited gaming in a New York claim that declares VGW uses celeb endorsers to 'create a veneer of authenticity' around its product. (See VGW's declaration below)<br>
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<br>'I'm unsure" if you don't trust us, you can rely on 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 presenter, Howard Glaser of gaming corporation Light & Wonder, told DailyMail.com.<br>
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<br>Sweepstakes endorsers include a series of stars from gambling enthusiasts Drake and DJ Khaled to swimmer Michael Phelps, in addition to NBA stars Karl-Anthony Towns and Paul George - none of whom offer any distinctions in between conventional gaming and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, one of numerous sweepstakes casinos discovered online<br>
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<br>Ryan Seacrest urges fans to play at Chumba Casino, where many - however not all - games are complimentary<br>
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<br>Drake has a handle social sweeps gambling establishment, Stake, that he regularly touts on social media<br>
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<br>Learn more<br>
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<br>Donald Trump 'set to name NBA team owner as US ambassador to Italy'<br>
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<br>Instead, advertisements generally center around the social aspect of the gambling establishments, while leaving out the potential for real gambling losses.<br>
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<br>Others tempt customers with promises of prizes. One such operator, Stake, ran a social networks advertisement showing off [Drake's](https://sensualmarketplace.com/read-blog/6400_the-ins-and-outs-of-betting-on-the-nfl-draft.html) vehicles, planes and estates before rotating to video of the rap artist playing online casino-style video games.<br>
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<br>'Daddy, why do we have a lot money?' read the first caption on the screen.<br>
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<br>Another caption explained: 'Because I never ever gave up.'<br>
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<br>The disparity in between gaming sites and social or sweepstakes casinos is a bit complex, but 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), described 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 casinos are playing for free.<br>
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<br>'Most social sweeps customers never buy,' the SPGA spokesperson told DailyMail.com. 'The minority of customers who make purchases do so in quantities far smaller sized than the common deposit or wager size at real-money online [sports betting](https://letustalk.co.in/read-blog/11493_how-to-withdraw-from-bet9ja-8-step-guide-to-cash-in-your-wins.html) sites.'<br>
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<br>Social casinos provide customers an opportunity to [play casino-style](https://bytes-the-dust.com/index.php/User:Michelle99Q) games with good friends. Players have the alternative to buy valueless currency frequently described as 'gold coins,' which can not be exchanged for real cash, 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 obtain other currency known as '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 player informed the Washington Post he lost more than $100,000 on sweepstakes casinos in the past year after continuing to purchase more coins in pursuit of money and other things of value.<br>
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<br>The Philadelphia 76ers' Paul George is seen promoting an International Poker occasion<br>
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<br>Social sweeps gambling establishment Stake ran an advertisement flaunting Drake's cars, airplanes and mansions<br>
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<br>Karl-Anthony Towns of the New York 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 actually helped to sustain the appeal of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which don't require normally require identification. 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](https://marketchat.in/read-blog/2596_online-betting-firms-gamble-on-soccer-mad-nigeria.html) Stake, allow customers to send mail-in ask for complimentary sweeps coins, offered the gamers follow painfully particular instructions. What's more, players are typically rewarded with sweeps coins just for registering, thereby offering them a reason to attempt their hands at any variety of casino video games for a possibility to win - or lose - real money.<br>
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<br>So why are sweepstakes sites permitted to run in 48 states, while online casinos are prohibited in all however 7?<br>
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<br>According to the stakeholders, their item is the complimentary casino-style gaming, and the real-stakes competitors is merely a method of promoting their support.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>'Social sweepstakes video games are just a form of online home entertainment,' an SPGA representative informed DailyMail.com by email. 'No purchase is required to play at social gambling establishments with sweepstakes rewards. Consumers never ever need to pay for a chance to win rewards. That lack of a [purchase requirement](https://realhindu.in/read-blog/21207_just-how-much-are-americans-investing-in-sports-betting.html) - or" consideration" - is an essential difference in between social sweeps and standard online gaming sites like casinos.'<br>
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<br>Consider the manner in which McDonald's utilizes its annual Monopoly video game to promote its food: Customers aren't paying to gamble, but rather they're buying hamburgers and fries that offer them the possibility to win rewarding prizes, such as a $1 million prize.<br>
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<br>And without a purchase requirement, or 'consideration', the video 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 type of daily companies in the United States, everything from burgers to magazine memberships to coffee and home improvement stores,' the SPGA representative 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 lots of gambling market insiders, that argument does not cut it.<br>
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<br>For beginners, video gaming attorney Daniel Wallach explains, McDonald's Monopoly video game doesn't run forever. Rather, it has a well-defined start and end, thus recommending the sweepstakes is not the fast-food giant's main item. Instead, the sweepstakes is being used to promote genuine items like french fries, shakes, and the Filet-O-Fish.<br>
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<br>'They don't last forever and they're normally not tied to casino-style games of opportunity,' Wallach told DailyMail.com. 'They're just cash free gifts.<br>
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<br>'The sweepstakes [casinos] have none of the attributes commonly connected with McDonald's-style sweepstakes promotions,' Wallach continued. 'Besides running in perpetuity, the sweepstakes casinos offer" casino-like" payments, typically 80 percent or more of revenues, whereas the normal payout portion for a temporary promotional sweepstakes is an of the income made by the company [generally less than one percent]'<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Wallach is fast to liken the online social sweeps gambling establishments to the internet coffee shops that emerged in Florida, using consumers the opportunity to play casino-style video games for real rewards. Much of those brick-and-mortar establishments have actually given that been shuttered over [allegations](https://namesdev.com/read-blog/15191_for-sports-gambling-to-be-legalised.html) of unlawful [sports betting](https://pittsburghpenguinsclub.com/read-blog/11536_sport-betting-industry-looks-to-protect-itself.html).<br>
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<br>DJ Khaled is amongst numerous star spokespeople for VGW's Global Poker brand<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Now, Wallach argues, social sweeps gambling establishments ought to deal with comparable examination.<br>
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<br>'These distinctions are not approximate,' Wallach stated of [social sweeps](https://letustalk.co.in/read-blog/11493_how-to-withdraw-from-bet9ja-8-step-guide-to-cash-in-your-wins.html) casinos. 'They have actually repeatedly been cited by courts and state chief law officer as crucial factors in identifying that a sweepstakes promo remained in truth a guise for prohibited [sports betting](https://uptoscreen.com/read-blog/74240_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html).'<br>
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<br>Among the gambling establishment industry's leading trade organizations, the American Gaming Association, is now pushing legislators to examine sweepstakes operators and, sometimes, enact brand-new legislation on the concern.<br>
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<br>'Consumers are being denied of securities and states are giving up considerable tax and revenue opportunities as this gambling changes that conducted through managed channels,' checked out a well-circulated AGA memo.<br>
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<br>And then there are the complainants who have taken legal action against social casinos in more than a lots states.<br>
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<br>Sweepstakes gambling establishment [operators](https://skylockr.app/read-blog/225_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) paid a combined $14.2 million in four different cases in [Kentucky](https://bigtoc.com/read-blog/8978_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) without confessing any misbehavior, according to the Washington Post. Meanwhile VGW accepted pay $11.75 million in one class-action suit, saying the settlement was made to prevent legal costs and continued lawsuits.<br>
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<br>Michael Phelps has signed a deal with the VGW Group, which owns Global Poker<br>
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<br>In the most recent lawsuit, which is mainly similar to its predecessors, New York state homeowners Lamar Prater and Rebecca Pratt both [declare](https://bytes-the-dust.com/index.php/User:TwilaGoll341) to have actually lost well over $1,000 to VGW, which is described in the filing as an 'unlawful [sports betting](https://social.myschoolfriend.ng/read-blog/40753_how-fantasy-betting-app-development-companies-and-sports-developers.html) business. '<br>
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<br>Apple and Google have likewise been named as accuseds in suits for hosting the sweepstakes sites. But unlike VGW, neither tech company reacted to DailyMail.com's request for comment.<br>
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<br>'We generally don't discuss matters before the courts,' a VGW spokesperson informed DailyMail.com by means of email. 'However, we note that this claim has actually only simply been filed with the court and VGW has not been officially served.<br>
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<br>'We have complete confidence in our compliance with all laws and guidelines where we operate, and stay positive about the future,' the spokesperson continued. 'We continue to provide our free-to-play games across the majority of The United States and Canada, as we have for more than a years, producing not only great games, user experiences and home entertainment, however also ensuring this is done safely, responsibly and at the greatest level of requirements.<br>
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<br>'More broadly, we 'd repeat that class actions and other litigations and arbitrations are relatively typical throughout the online social video games market (and the US more broadly), and our standard [practice](https://realhindu.in/read-blog/21356_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) is that we intend to vigorously defend any claim which might be brought against us.'<br>
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<br>The issues in between standard online gambling and sweepstakes casinos might prove bothersome for some celebrity 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 traditional video gaming titans like FanDuel and DraftKings.<br>
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<br>'It's ironic that expert athletes are hawking prohibited [sports betting](https://infosocial.top/read-blog/4022_how-to-play-bet9ja-online.html) wagering 'sweeps' sites while at the very same time the leagues wish to project a strong position versus prohibited gambling - particularly when trying to tamp down the periodic [sports betting](https://moonifie.com/read-blog/1426_the-history-of-the-nfl-and-how-to-bank-on-it.html) 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 restriction from the NBA over allegations he conspired with gamblers. However, to be clear, Porter's scandal is unassociated to anything involving social or sweepstakes gambling [establishments](http://famedoot.in/read-blog/90_score-big-wins-how-sports-betting-software-drives-growth-and-engagement.html).<br>
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<br>Together with VGW, Apple and Google are being sued for hosting supposedly unlawful gambling websites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a major issue for leagues such as the NBA.<br>
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<br>'I 'd expect that a league crackdown on athletes backing sweepstakes websites refers when, not if,' Glaser included.<br>
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<br>Neither an NBA representative nor the players' representatives reacted to DailyMail.com's demands for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps also ignored to react to DailyMail.com emails.<br>
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<br>Asked if their celeb endorsers have a duty to discuss to consumers the distinctions and resemblances 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 self-confidence in our influencer and ambassadorial partnerships, and our service practices more broadly,' the spokesperson stated. 'Some of our values 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 websites, sees things in a different way.<br>
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<br>'Celebrities who lend their names to shady unlawful [sports betting](http://wiki.faramirfiction.com/index.php?title=User:Giuseppe38K) sites are, at a minimum, putting their reputations at risk as well as courting civil and class actions by consumers who declare damage,' Glaser stated. 'There is also some threat that state regulators and state attorneys basic rope celeb [endorsers](https://clik.social/read-blog/19034_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) into enforcement efforts for facilitating prohibited [sports betting](https://www.contraband.ch/read-blog/41647_score-big-wins-how-sports-betting-software-drives-growth-and-engagement.html).'<br>
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<br>New YorkNBADrakeParis Hilton<br>
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