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 unlawful [sports betting](https://clik.social/read-blog/18988_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html).<br>
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<br>No, they weren't personally in attendance, however the world-famous celebs were notably consisted of in a slide discussion on social and sweepstakes gambling establishments - the questionable websites using both free casino-style video games and profitable prizes, such as money, present cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'bet totally free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>The websites are simply 2 cogs in the multibillion-dollar industry that now discovers itself besieged by lawsuits. In the eyes of lots of gaming corporations, not to mention claim plaintiffs and state regulators, sweepstakes casinos function as standard gambling establishments, only without the oversight, consumer securities and tax laws. So not just can they prevent the high 24-percent federal gambling levy, however sweepstakes operators aren't subject to regulative difficulties like anti-money laundering and responsible-gaming protections.<br>
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<br>One operator, Australia-based [Virtual Gaming](https://wiki.vst.hs-furtwangen.de/wiki/User:LuisaKossak244) Worlds (VGW), reported $4 billion in income in 2015 alone. Now the business deals with allegations of illegal gambling in a New york [city lawsuit](https://oolibuzz.com/read-blog/41661_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) that claims VGW uses celebrity endorsers to 'develop a veneer of [legitimacy'](https://personal.spaces.one/read-blog/3099_how-are-betting-odds-calculated.html) around its item. (See VGW's statement below)<br>
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<br>'I'm unsure" if you do not trust us, you can rely on Paris Hilton" is a winning message for business running multibillion-dollar illegal operations out of locations like Malta, Isle of Man, or US mail drops,' Friday's speaker, 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 lovers Drake and DJ Khaled to swimmer Michael Phelps, along with NBA stars Karl-Anthony Towns and Paul George - none of whom offer any distinctions in between standard gambling and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, among numerous sweepstakes gambling establishments found online<br>
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<br>Ryan Seacrest prompts fans to play at Chumba Casino, where many - but not all - video games are complimentary<br>
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<br>Drake has a handle social sweeps casino, Stake, that he routinely touts on social media<br>
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<br>Read More<br>
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<br>[Donald Trump](https://seenoor.com/read-blog/451_for-sports-gambling-to-be-legalised.html) 'set to name NBA group owner as US ambassador to Italy'<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Instead, ads generally focus around the social aspect of the casinos, while omitting the capacity for real gambling losses.<br>
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<br>Others lure customers with promises of rewards. One such operator, Stake, ran a social media ad displaying Drake's vehicles, airplanes and mansions before pivoting to video 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 quit.'<br>
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<br>The disparity between [sports betting](https://we2chat.net/read-blog/26447_enhance-your-business-opportunities-with-efficient-sports-apps.html) websites and social or sweepstakes gambling establishments is a bit intricate, but operators of the latter insist they're not involved with the previous.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>A spokesperson for an industry 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, many of the players on social-sweepstakes casinos are [sports betting](https://seenoor.com/read-blog/451_for-sports-gambling-to-be-legalised.html) totally free.<br>
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<br>'Most social sweeps clients never ever purchase,' the SPGA spokesperson informed DailyMail.com. 'The minority of clients who make purchases do so in amounts far smaller than the normal deposit or bet size at real-money online gaming sites.'<br>
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<br>Social gambling establishments provide customers a possibility to play casino-style games with good friends. Players have the alternative to [purchase worthless](https://marketchat.in/read-blog/2622_things-you-need-to-know-about-rafting-adventures.html) currency frequently described as 'gold coins,' which can not be exchanged genuine cash, but can be utilized to open numerous features within the games.<br>
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<br>But within the world of social gambling establishments exists sweepstakes video gaming, allowing 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 capacity for monetary losses, like the ones declared by plaintiffs in Florida, Georgia, New Jersey and New York City. One player told 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 cash and other things of value.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>The Philadelphia 76 George is seen promoting an International Poker event<br>
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<br>Social sweeps gambling establishment Stake ran an advertisement displaying [Drake's](https://droidt99.com/read-blog/6793_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) automobiles, planes and mansions<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 banned in all but 7 states, which has actually assisted to fuel the appeal of sweepstakes gambling establishments.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which do not need normally need identification. However, websites like Chumba will request IDs from gamers trying to withdraw any funds.<br>
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<br>Many websites, like the crypto-compatible Stake, enable clients to submit mail-in ask for complimentary sweeps coins, provided the gamers follow painfully particular instructions. What's more, players are typically rewarded with sweeps coins merely for registering, therefore offering them a factor to attempt their hands at any number of casino video games for a possibility to win - or lose - genuine cash.<br>
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<br>So why are sweepstakes sites allowed to run in 48 states, while online gambling establishments are banned in all but 7?<br>
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<br>According to the stakeholders, their item is the totally free casino-style video gaming, and the real-stakes competitors is merely a method of promoting their bread and butter.<br>
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<br>'Social sweepstakes video games are merely a type of online entertainment,' an SPGA spokesperson informed DailyMail.com by e-mail. 'No purchase is required to play at social gambling establishments with sweepstakes prizes. Consumers never ever have to pay for an opportunity to win rewards. That absence of a purchase requirement - or" consideration" - is an important distinction between social sweeps and conventional online gaming websites like casinos.'<br>
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<br>Think of the method that McDonald's utilizes its yearly Monopoly game to promote its food: Customers aren't paying to gamble, but rather they're buying hamburgers and fries that offer them the chance to [win financially](http://classicalmusicmp3freedownload.com/ja/index.php?title=%E5%88%A9%E7%94%A8%E8%80%85:ArletteNull30) rewarding prizes, such as a $1 million prize.<br>
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<br>And without a purchase requirement, or 'factor to consider', the video game itself doesn't satisfy the meaning of gaming in the US.<br>
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<br>'Sweepstakes are an enduring technique for [promoting](https://sfqatest.sociofans.com/read-blog/647_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) all sort of everyday organizations in the United States, whatever from hamburgers 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 family names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'<br>
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<br>But to lots of gambling industry experts, that argument doesn't cut it.<br>
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<br>For beginners, video gaming lawyer Daniel Wallach explains, McDonald's Monopoly game doesn't run indefinitely. Rather, it has a distinct start and end, thereby recommending the sweepstakes is not the fast-food giant's main product. Instead, the [sweepstakes](https://www.eruptz.com/read-blog/17285_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) is being utilized to promote genuine items like french fries, shakes, and the Filet-O-Fish.<br>
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<br>'They do not last permanently and they're usually not [connected](https://miderde.de/index.php?title=Benutzer:Junior83E61) to casino-style games of possibility,' Wallach told DailyMail.com. 'They're just cash giveaways.<br>
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<br>'The sweepstakes [gambling establishments] possess none of the qualities typically related to McDonald's-design sweepstakes promos,' Wallach continued. 'Besides running in perpetuity, the sweepstakes casinos offer" casino-like" payouts, generally 80 percent or more of incomes, whereas the typical payment portion for a short-term promotional sweepstakes is a trivial share of the revenue earned by the company [generally less than one percent]'<br>
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<br>Wallach fasts to liken the online social sweeps gambling establishments to the internet coffee shops that emerged in Florida, providing consumers the possibility to play casino-style video games for genuine prizes. Many of those brick-and-mortar establishments have actually because been shuttered over claims of prohibited [sports betting](https://parentingliteracy.com/wiki/index.php/User:ElijahClaudio).<br>
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<br>DJ Khaled is among a number of star spokespeople for VGW's Global Poker brand name<br>
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<br>Now, Wallach argues, social sweeps casinos need to deal with comparable scrutiny.<br>
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<br>'These differences are not approximate,' Wallach said of social sweeps gambling establishments. 'They have repeatedly been cited by courts and state attorney general of the United States as crucial aspects in figuring out that a sweepstakes promotion remained in truth a guise for prohibited gaming.'<br>
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<br>One of the casino industry's leading trade companies, the American Gaming Association, is now [pushing](https://cittaviva.net/read-blog/21475_things-you-need-to-understand-about-rafting-adventures.html) legislators to investigate sweepstakes operators and, in some cases, enact new legislation on the issue.<br>
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<br>'Consumers are being denied of defenses and states are giving up substantial tax and income chances as this gaming changes that conducted through controlled channels,' read a well-circulated AGA memo.<br>
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<br>And then there are the complainants who have sued social casinos in more than a dozen 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 agreed to pay $11.75 million in one class-action lawsuit, saying the settlement was made to prevent legal costs and continued litigation.<br>
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<br>Michael Phelps has actually signed a handle the VGW Group, which owns Global Poker<br>
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<br>In the current claim, which is mainly similar to its predecessors, New york city state residents Lamar Prater and Rebecca Pratt both claim to have lost well over $1,000 to VGW, which is explained in the filing as an 'prohibited gambling enterprise. '<br>
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<br>Apple and Google have also been named as defendants in claims 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 typically do not talk about matters before the courts,' a VGW spokesperson told DailyMail.com by means of e-mail. 'However, we note that this claim has actually only simply been submitted 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 regulations where we run, and stay confident about the future,' the representative continued. 'We continue to provide our free-to-play games throughout the majority of North America, as we have for more than a years, producing not just fantastic video games, user experiences and entertainment, but likewise ensuring this is done safely, responsibly and at the greatest level of standards.<br>
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<br>'More broadly, we 'd repeat that [class actions](https://tripta.social/read-blog/1302_how-much-are-americans-investing-in-sports-betting.html) and other litigations and arbitrations are fairly typical across the online social games industry (and the US more broadly), and our basic practice is that we intend to strongly defend any claim which might be [brought versus](https://redebuck.com.br/read-blog/22153_online-betting-firms-gamble-on-soccer-mad-nigeria.html) us.'<br>
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<br>The problems between conventional online gambling and sweepstakes casinos could show troublesome 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 name while the NBA is partnered with standard video gaming titans like FanDuel and DraftKings.<br>
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<br>'It's paradoxical that expert athletes are hawking prohibited [sports betting](https://wow.t-mobility.co.il/read-blog/14_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) 'sweeps' websites while at the same time the leagues want to forecast a strong position versus illegal [sports betting](https://netgork.com/read-blog/110069_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html) - specifically when trying to tamp down the occasional [sports betting](https://www.eruptz.com/read-blog/17420_how-to-withdraw-from-bet9ja-8-step-guide-to-money-in-your-wins.html) 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 bettors. 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 apparently prohibited gambling sites<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 professional athletes backing sweepstakes sites refers when, not if,' Glaser added.<br>
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<br>Neither an NBA representative nor the gamers' agents reacted to DailyMail.com's demands for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise neglected to react to DailyMail.com e-mails.<br>
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<br>Asked if their celeb endorsers have a duty to describe to consumers the differences and similarities between iGaming and sweepstakes gambling establishments, VGW firmly insisted there is absolutely nothing more that requires to be done.<br>
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<br>'We have full confidence in our influencer and ambassadorial collaborations, and our company practices more broadly,' the spokesperson stated. 'A few of our worths are" our players come first" 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 challenger of sweepstakes sites, sees things differently.<br>
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<br>'Celebrities who lend their names to shady illegal [sports betting](http://ringturbine.com:80/index.php/User:Francisca17S) sites are, at a minimum, putting their reputations at risk in addition to courting civil and class actions by customers who allege harm,' Glaser said. 'There is also some threat that state regulators and state attorneys basic rope star endorsers into enforcement efforts for helping with 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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