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 illegal [sports betting](https://gayplatform.de/read-blog/3199_how-to-play-bet9ja-online.html).<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>No, they weren't personally in attendance, but the world-famous celebs were conspicuously consisted of in a slide discussion on social and sweepstakes gambling establishments - the controversial websites offering both complimentary casino-style video games and profitable prizes, such as money, present cards or cryptocurrency. In one ad, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'bet complimentary,' 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 websites are simply 2 cogs in the multibillion-dollar industry that now finds itself besieged by claims. In the eyes of lots of gaming corporations, not to point out suit complainants and state regulators, sweepstakes gambling establishments serve as traditional gambling establishments, only without the oversight, [customer defenses](http://www.larsaluarna.se/index.php/User:WildaAntonieff) and tax laws. So not just can they avoid the high 24-percent federal [sports betting](https://lifefriendsurance.com/how-are-betting-odds-calculated/) levy, but sweepstakes operators aren't subject to regulative hurdles 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 income last year alone. Now the company deals with accusations of prohibited gambling in a New york city claim that declares VGW uses star endorsers to 'produce a veneer of legitimacy' around its item. (See VGW's declaration listed below)<br>
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<br>'I'm uncertain" if you do not trust us, you can trust Paris Hilton" is a winning message for business running multibillion-dollar prohibited operations out of locations like Malta, Isle of Man, or US mail drops,' Friday's speaker, Howard Glaser of gaming corporation Light & Wonder, [informed DailyMail](http://www.larsaluarna.se/index.php/User:Kevin79763).com.<br>
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<br>Sweepstakes endorsers consist of a range of celebrities from gambling enthusiasts Drake and DJ Khaled to swimmer Michael Phelps, as well as NBA stars Karl-Anthony Towns and Paul George - none of whom use any differences in between conventional gambling and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, one of lots of sweepstakes gambling establishments discovered online<br>
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<br>Ryan Seacrest prompts fans to dip into Chumba Casino, where lots of - however not all - video games are [totally](https://accc.rcec.sinica.edu.tw/mediawiki/index.php?title=User:NovellaCovington) free<br>
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<br>Drake has a handle social sweeps gambling establishment, Stake, that he routinely promotes on social media<br>
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<br>Learn 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 usually focus around the social element of the gambling establishments, while omitting the potential for actual gaming losses.<br>
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<br>Others lure consumers with pledges of prizes. One such operator, Stake, ran a social networks ad showing off Drake's cars, planes and estates before rotating to footage 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 described: 'Because I never quit.'<br>
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<br>The discrepancy between gaming websites and social or sweepstakes casinos is a bit intricate, but operators of the latter insist they're not involved with the former.<br>
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<br>A representative for an industry trade group, the Social and Promotional Gaming Association (SPGA), discussed its members are not in direct competition with online casinos and sportsbooks. Furthermore, according to SPGA information, the majority of the gamers on social-sweepstakes casinos are [sports betting](https://a2zstreamsnow.com/read-blog/2549_things-you-need-to-learn-about-rafting-adventures.html) totally free.<br>
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<br>'Most social sweeps consumers never ever buy,' the SPGA spokesperson told DailyMail.com. 'The minority of clients who make purchases do so in amounts far smaller sized than the normal deposit or bet size at real-money online gaming sites.'<br>
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<br>Social casinos provide consumers an opportunity to play casino-style games with friends. Players have the option to buy worthless currency typically described as 'gold coins,' which can not be exchanged for genuine money, however can be utilized to unlock various features within the video games.<br>
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<br>But within the world of social gambling establishments exists sweepstakes gaming, allowing consumers to get other currency called 'sweeps coins' that can be exchanged for cash or other prizes.<br>
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<br>And therein lies the capacity for financial losses, like the ones claimed 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 past year after continuing to [purchase](https://genzkenya.co.ke/read-blog/91_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) more coins in pursuit of cash and other things of worth.<br>
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<br>The Philadelphia 76ers' Paul George is seen promoting a Worldwide Poker occasion<br>
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<br>Social sweeps gambling establishment Stake ran an ad revealing off Drake's vehicles, 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 casinos 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 websites, which don't require typically need recognition. However, sites like Chumba will ask for 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 demands for complimentary sweeps coins, offered the players follow painfully particular instructions. What's more, gamers are often rewarded with sweeps coins simply for registering, consequently [providing](http://t-salon-de-jun.com/?document_srl=5772556) a factor to try their hands at any variety of gambling establishment video games for a chance to win - or lose - genuine money.<br>
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<br>So why are sweepstakes websites permitted to operate in 48 states, while online gambling establishments are prohibited in all but 7?<br>
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<br>According to the stakeholders, their product is the free casino-style video gaming, and the real-stakes competitors is simply a means of promoting their support.<br>
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<br>'Social sweepstakes video games are just a type of online entertainment,' an SPGA spokesperson told DailyMail.com by e-mail. 'No purchase is needed to play at social casinos with sweepstakes prizes. Consumers never have to pay for an opportunity to win rewards. That absence of a purchase requirement - or" factor to consider" - is an essential distinction between social sweeps and traditional online gambling websites like casinos.'<br>
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<br>Think of the manner in which McDonald's utilizes its yearly Monopoly game to promote its food: Customers aren't paying to gamble, but rather they're purchasing hamburgers and french fries that use them the chance to win lucrative rewards, such as a $1 million prize.<br>
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<br>And without a purchase requirement, or 'factor to consider', the game itself doesn't meet the meaning of gaming in the US.<br>
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<br>'Sweepstakes are a long-standing technique for promoting all kinds of everyday organizations in the United States, everything from hamburgers to publication memberships to coffee and home enhancement stores,' the SPGA representative informed DailyMail.com. 'Sweepstakes promotions are regularly utilized 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 numerous [sports betting](https://ai.tienda/read-blog/7237_enhance-your-business-opportunities-with-efficient-sports-apps.html) industry experts, that argument doesn't cut it.<br>
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<br>For beginners, video gaming lawyer Daniel Wallach points out, McDonald's Monopoly game does not run forever. Rather, it has a well-defined start and end, consequently suggesting the sweepstakes is not the fast-food giant's main product. Instead, the sweepstakes 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 normally not tied to casino-style video games of possibility,' Wallach informed DailyMail.com. 'They're simply money giveaways.<br>
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<br>'The sweepstakes [gambling establishments] have none of the qualities frequently connected with McDonald's-style sweepstakes promos,' Wallach continued. 'Besides running in perpetuity, the sweepstakes gambling establishments offer" casino-like" payouts, normally 80 percent or more of incomes, whereas the normal payout percentage for a temporary promotional sweepstakes is an insignificant share of the profits earned by the business [typically less than one percent]'<br>
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<br>Wallach is fast to liken the online social sweeps casinos to the internet coffee shops that sprang up in Florida, providing customers the possibility to play casino-style video games for real prizes. A lot of those brick-and-mortar facilities have actually because been shuttered over allegations of illegal gaming.<br>
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<br>DJ Khaled is among several celeb spokespeople for VGW's Global Poker brand<br>
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<br>Now, Wallach argues, [social sweeps](https://firstamendment.tv/read-blog/72513_start-off-winning-with-pcg-college-football-picks.html) gambling establishments must deal with similar examination.<br>
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<br>'These differences are not arbitrary,' Wallach stated of social sweeps gambling establishments. 'They have repeatedly been mentioned by courts and state attorney general of the United States as essential aspects in figuring out that a sweepstakes promo was in fact a guise for illegal gaming.'<br>
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<br>Among the casino industry's leading trade organizations, the American Gaming Association, is now pressing legislators to [examine sweepstakes](http://experienciacortazar.com.ar/wiki/index.php?title=Usuario:TyreeDietrich9) operators and, in some cases, enact brand-new legislation on the issue.<br>
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<br>'Consumers are being denied of protections and states are passing up considerable tax and profits chances as this [sports betting](https://www.vancouverrowingclub.wiki/index.php/User:SammyDespeissis) replaces that performed through channels,' read a well-circulated AGA memo.<br>
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<br>And after that there are the plaintiffs who have sued social casinos in more than a lots states.<br>
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<br>Sweepstakes casino operators paid a combined $14.2 million in 4 [separate](https://sneakerxp.com/gambling/sports-minister-tracey-crouch-resigns-over-hold-up-to-betting-crackdown/) cases in Kentucky without admitting any wrongdoing, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action lawsuit, stating the settlement was made to prevent legal expenses and continued lawsuits.<br>
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<br>Michael Phelps has signed an offer with the VGW Group, which owns Global Poker<br>
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<br>In the latest claim, which is largely similar to its predecessors, New York state residents Lamar Prater and Rebecca Pratt both declare to have lost well over $1,000 to VGW, which is described in the filing as an 'illegal gaming enterprise. '<br>
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<br>Apple and Google have likewise been called as offenders in claims for hosting the sweepstakes sites. But unlike VGW, neither tech business reacted to DailyMail.com's request for comment.<br>
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<br>'We generally do not talk about matters before the courts,' a VGW representative told DailyMail.com through email. 'However, we keep in mind that this claim has actually only simply been filed with the court and VGW has not been formally served.<br>
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<br>'We have full self-confidence in our compliance with all laws and regulations where we run, and stay confident about the future,' the [spokesperson continued](https://www.sportpassionhub.com/read-blog/1460_how-much-are-americans-investing-in-sports-betting.html). 'We continue to use our free-to-play video games throughout the majority of The United States and Canada, as we have for more than a years, developing not just [excellent](https://wiki.dulovic.tech/index.php/User:JeroldCrocker7) games, user experiences and home entertainment, however also [ensuring](https://www.opentx.cz/index.php/U%C5%BEivatel:RobbinDew8554) this is done securely, responsibly and at the highest level of standards.<br>
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<br>'More broadly, we 'd reiterate that class actions and other lawsuits and arbitrations are relatively typical throughout the online social games market (and the US more broadly), and our basic practice is that we intend to strongly defend any claim which might be brought against us.'<br>
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<br>The problems between traditional online gambling and sweepstakes gambling establishments might show troublesome for some [star endorsers](https://infinirealm.com/read-blog/8225_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html).<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 professional athletes are hawking prohibited [sports betting](http://t-salon-de-jun.com/board/5776897) wagering 'sweeps' websites while at the exact same time the leagues desire to predict a strong position against [unlawful gambling](https://mxlinkin.mimeld.com/read-blog/659_how-to-attract-users-to-my-fantasy-sports-platform.html) - specifically when trying to tamp down the periodic gaming scandal,' Glaser informed [DailyMail](https://netgork.com/read-blog/109809_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html).com.<br>
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<br>It was just eight months ago that Toronto Raptors forward Jontay Porter got a lifetime ban from the NBA over allegations he conspired with gamblers. However, to be clear, Porter's scandal is unrelated to anything involving social or sweepstakes casinos.<br>
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<br>Together with VGW, Apple and Google are being demanded hosting allegedly unlawful [sports betting](https://inicknet.com/read-blog/2149_how-to-play-bet9ja-online.html) websites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a significant concern for [leagues](https://wiki.sublab.net/index.php?title=User_talk:Vaughn8507) such as the NBA.<br>
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<br>'I 'd anticipate that a league crackdown on professional athletes backing sweepstakes sites refers when, not if,' Glaser included.<br>
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<br>Neither an NBA spokesman nor the gamers' agents reacted to DailyMail.com's ask for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise ignored to react to DailyMail.com emails.<br>
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<br>Asked if their star endorsers have a responsibility to describe to consumers the distinctions 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 complete confidence in our influencer and ambassadorial partnerships, and our organization practices more broadly,' the representative said. 'A few of our worths are" our players come first" 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 opponent of sweepstakes websites, sees things differently.<br>
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<br>'Celebrities who provide their names to shady prohibited [sports betting](https://followingbook.com/read-blog/20196_score-big-wins-how-sports-betting-software-drives-growth-and-engagement.html) websites are, at a minimum, putting their credibilities at danger as well as courting civil and class actions by customers who allege harm,[' Glaser](https://bbarlock.com/index.php/User:SerenaMackinlay) stated. 'There is also some risk that state regulators and state chief law officers rope star endorsers into enforcement efforts for facilitating prohibited [sports betting](https://issosyal.com/read-blog/10004_how-to-play-bet9ja-online.html).'<br>
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