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 gambling.<br>
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<br>No, they weren't personally in attendance, but the [world-famous stars](http://ccrr.ru/read-blog/20860_score-big-wins-how-sports-betting-software-drives-growth-and-engagement.html) were notably consisted of in a slide presentation on social and sweepstakes casinos - the questionable sites offering both free casino-style games and rewarding rewards, such as cash, present cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'play for totally free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>
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<br>The websites are simply two cogs in the multibillion-dollar industry that now finds itself besieged by lawsuits. In the eyes of many video gaming corporations, not to point out claim plaintiffs and state regulators, sweepstakes casinos serve as traditional gambling establishments, just without the oversight, customer defenses and tax laws. So not just can they prevent the steep 24-percent federal gaming levy, but sweepstakes operators aren't based on regulatory difficulties like anti-money laundering and responsible-gaming defenses.<br>
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<br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in earnings in 2015 alone. Now the [company](https://mensaceuta.com/read-blog/9212_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) faces allegations of unlawful gambling in a New York claim that claims VGW uses celeb endorsers to 'produce a veneer of authenticity' around its product. (See VGW's statement below)<br>
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<br>'I'm not sure" if you do not trust us, you can trust Paris Hilton" is a winning message for business operating multibillion-dollar unlawful operations out of locations like Malta, Isle of Man, or US mail drops,' Friday's speaker, Howard Glaser of video gaming corporation Light & Wonder, told DailyMail.com.<br>
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<br>Sweepstakes endorsers consist of a series of celebs 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 use any differences between standard gaming and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, among lots of sweepstakes casinos discovered online<br>
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<br>Ryan Seacrest advises fans to dip into Chumba Casino, where numerous - however not all [- video](https://globalunitedspirits.com/read-blog/3476_how-to-play-bet9ja-online.html) games are free<br>
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<br>Drake has a deal with social sweeps gambling establishment, Stake, that he routinely promotes on social networks<br>
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<br>Find out more<br>
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<br>Donald Trump 'set to name NBA group owner as US ambassador to Italy'<br>
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<br>Instead, advertisements generally focus around the social aspect of the gambling establishments, while leaving out the [capacity](https://forum.webmark.com.tr/index.php?qa=59560&qa_1=how-much-are-americans-spending-on-sports-betting) for real gaming losses.<br>
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<br>Others lure consumers with pledges of rewards. One such operator, Stake, ran a social media ad flaunting Drake's automobiles, aircrafts and mansions before rotating to video footage of the rap artist playing online casino-style games.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>'Daddy, why do we have so much money?' check out the very first caption on the screen.<br>
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<br>Another caption described: 'Because I never ever offered up.'<br>
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<br>The disparity in between gambling websites and social or sweepstakes gambling establishments is a bit complicated, however operators of the latter insist they're not included with the previous.<br>
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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 casinos and sportsbooks. Furthermore, according to SPGA information, the majority of the players on social-sweepstakes casinos are playing for free.<br>
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<br>'Most social sweeps customers never buy,' the SPGA spokesperson informed DailyMail.com. 'The minority of customers who make purchases do so in quantities far smaller than the common deposit or bet size at real-money online gambling websites.'<br>
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<br>Social casinos offer clients an [opportunity](http://www.mizmiz.de/read-blog/83342_missouri-sports-betting-ballot-measure-approved-by-voters.html) to play casino-style video games with buddies. Players have the alternative to purchase valueless currency often referred to as 'gold coins,' which can not be exchanged for real money, however can be used to unlock numerous features within the games.<br>
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<br>But within the world of social casinos exists sweepstakes video gaming, permitting customers to acquire other currency called 'sweeps coins' that can be exchanged for cash or other rewards.<br>
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<br>And therein lies the potential for financial losses, like the ones declared by complainants in Florida, Georgia, New Jersey and New York. One player told the Washington Post he lost more than $100,000 on sweepstakes gambling establishments 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](https://bytes-the-dust.com/index.php/User:Deneen0970) 76ers' Paul George is seen [promoting](https://gazanour.com/read-blog/7874_enhance-your-business-opportunities-with-efficient-sports-apps.html) a Worldwide Poker occasion<br>
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<br>Social sweeps gambling [establishment Stake](https://ozoms.com/read-blog/11128_how-much-are-americans-spending-on-sports-betting.html) ran an advertisement flaunting Drake's vehicles, airplanes 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](https://pittsburghtribune.org/read-blog/132036_how-to-attract-users-to-my-fantasy-sports-platform.html) are prohibited in all but 7 states, which has actually assisted to sustain the popularity of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which do not require normally require recognition. However, websites like Chumba will ask for IDs from gamers attempting to withdraw any funds.<br>
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<br>Many websites, like the crypto-compatible Stake, allow consumers to submit mail-in ask for free sweeps coins, supplied the gamers follow painfully specific instructions. What's more, players are often rewarded with sweeps coins merely for registering, thereby providing them a factor to try their hands at any number of casino video games for an [opportunity](https://web-chat.cloud/question2answer/index.php?qa=41495&qa_1=how-much-are-americans-spending-on-sports-betting) to win - or lose - real money.<br>
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<br>So why are sweepstakes websites enabled to run in 48 states, while online gambling establishments are prohibited 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 simply a method of promoting their support.<br>
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<br>'Social sweepstakes video games are merely a kind of online entertainment,' an SPGA spokesperson [informed DailyMail](https://sosmed.almarifah.id/read-blog/496_just-how-much-are-americans-investing-in-sports-betting.html).com by email. 'No purchase is needed to dip into social gambling establishments with sweepstakes rewards. Consumers never need to pay for an opportunity to win rewards. That absence of a purchase requirement - or" factor to consider" - is an important difference between social sweeps and standard online [sports betting](http://touringtreffen.nl/read-blog/2418_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) websites like gambling establishments.'<br>
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<br>Think about the manner in which McDonald's uses its yearly Monopoly game to promote its food: Customers aren't paying to bet, but rather they're purchasing hamburgers and french fries that offer them the opportunity to win financially 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 meaning of [sports betting](https://collegetalks.site/read-blog/11786_start-off-winning-with-pcg-college-football-picks.html) in the US.<br>
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<br>'Sweepstakes are a long-standing technique for promoting all type of everyday services in the United States, whatever from burgers to publication subscriptions to coffee and home enhancement shops,' the SPGA spokesperson informed DailyMail.com. 'Sweepstakes promotions are frequently utilized by a who's who of family names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>But to lots of gambling industry insiders, that argument does not cut it.<br>
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<br>For starters, video gaming attorney Daniel Wallach points out, McDonald's Monopoly video game doesn't run forever. Rather, it has a well-defined start and end, therefore recommending the sweepstakes is not the fast-food giant's main item. Instead, the sweepstakes is being used to promote real products like french fries, shakes, and the [Filet-O-Fish](https://www.opentx.cz/index.php/U%C5%BEivatel:LoreenDidomenico).<br>
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<br>'They don't last forever and they're typically not connected to casino-style video games of chance,' Wallach informed DailyMail.com. 'They're simply money giveaways.<br>
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<br>'The sweepstakes [casinos] have none of the attributes commonly connected with McDonald's-design sweepstakes promos,' Wallach continued. 'Besides running in all time, the sweepstakes casinos use" casino-like" payments, typically 80 percent or more of incomes, whereas the normal payment [portion](https://birdiey.com/read-blog/357_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) for a momentary advertising sweepstakes is an insignificant share of the revenue earned by the company [normally less than one percent]'<br>
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<br>[Wallach](https://genzkenya.co.ke/read-blog/85_for-sports-gambling-to-be-legalised.html) is fast to compare the online social sweeps casinos to the web coffee shops that emerged in Florida, using clients the opportunity to play casino-style games for genuine prizes. A number of those brick-and-mortar facilities have actually given that been shuttered over accusations of [unlawful gambling](https://www.sportfansunite.com/read-blog/285_for-sports-gambling-to-be-legalised.html).<br>
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<br>DJ Khaled is amongst a number of celeb spokespeople for VGW's [Global Poker](https://redmonde.es/read-blog/123_the-ins-and-outs-of-betting-on-the-nfl-draft.html) brand name<br>
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<br>Now, Wallach argues, social sweeps casinos ought to deal with similar analysis.<br>
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<br>'These distinctions are not approximate,' Wallach said of social sweeps gambling establishments. 'They have consistently been cited by courts and state attorney general of the United States as crucial elements in figuring out that a sweepstakes promotion was in reality a guise for unlawful gambling.'<br>
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<br>One of the gambling establishment market's leading trade organizations, the American Gaming Association, is now pressing legislators to investigate sweepstakes operators and, sometimes, enact brand-new legislation on the issue.<br>
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<br>'Consumers are being denied of defenses and states are forgoing substantial tax and profits chances as this gaming changes that carried out through regulated channels,' checked out a well-circulated AGA memo.<br>
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<br>And then there are the plaintiffs who have actually taken legal action against social gambling establishments in more than a lots states.<br>
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<br>Sweepstakes gambling establishment operators paid a combined $14.2 million in 4 separate cases in Kentucky without confessing any misbehavior, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action claim, saying the settlement was made to avoid legal expenses and continued lawsuits.<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 most recent suit, which is largely comparable to its predecessors, New york city state citizens 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 'prohibited [sports betting](https://sportstalkhub.com/read-blog/20373_for-sports-gambling-to-be-legalised.html) enterprise. '<br>
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<br>Apple and Google have also been called as offenders in claims for hosting the sweepstakes sites. But unlike VGW, neither tech company responded to DailyMail.com's ask for comment.<br>
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<br>'We usually don't discuss matters before the courts,' a VGW representative told DailyMail.com through e-mail. 'However, we keep in mind that this claim has only simply been filed with the court and VGW has actually not been formally served.<br>
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<br>'We have full confidence in our compliance with all laws and regulations where we operate, and remain confident about the future,' the spokesperson continued. 'We continue to offer our free-to-play video games throughout most of The United States and Canada, as we have for more than a decade, developing not only terrific games, user experiences and home entertainment, however also ensuring this is done safely, properly and at the highest level of standards.<br>
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<br>'More broadly, we 'd repeat that class actions and other litigations and arbitrations are fairly common throughout the online social games market (and the US more broadly), and our basic practice is that we plan to intensely defend any claim which may be brought against us.'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>The issues between conventional online [sports betting](https://redebuck.com.br/read-blog/22098_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) and sweepstakes casinos might prove problematic 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 conventional video gaming titans like FanDuel and DraftKings.<br>
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<br>'It's ironic that expert athletes are hawking unlawful [sports betting](https://peekz.eu/read-blog/251_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) wagering 'sweeps' sites while at the exact same time the leagues wish to project a strong stance against illegal gaming - specifically when attempting to tamp down the occasional gaming scandal,' Glaser informed 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 accusations he conspired with bettors. However, to be clear, Porter's scandal is unassociated to anything involving social or sweepstakes casinos.<br>
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<br>Together with VGW, Apple and Google are being presumably unlawful [sports betting](https://projectblueberryserver.com/index.php/User:KayleeDpt56171) sites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a significant issue for leagues such as the NBA.<br>
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<br>'I 'd anticipate that a league crackdown on professional athletes backing sweepstakes sites is a matter of when, not if,' Glaser added.<br>
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<br>Neither an NBA spokesperson nor the players' agents reacted to DailyMail.com's ask for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps also overlooked to react to DailyMail.com e-mails.<br>
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<br>Asked if their star endorsers have an obligation to explain to [consumers](https://ask.onekeeitsolutions.com/index.php?qa=86815&qa_1=fantasy-betting-development-companies-sports-developers) the differences and resemblances between iGaming and sweepstakes casinos, VGW insisted there is 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 business practices more broadly,' the representative stated. 'Some of our values are" our gamers 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 prohibited gambling websites are, at a minimum, putting their credibilities at threat in addition to courting civil and class actions by customers who allege damage,' Glaser stated. 'There is also some danger that state regulators and state lawyers general rope star endorsers into enforcement efforts for facilitating illegal gaming.'<br>
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<br>New YorkNBADrakeParis Hilton<br>
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