Add Sweepstakes Casino Controversy - And Celebrities' All-important Role
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[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)<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://wiki.ragnaworld.net/index.php?title=User:RodneyJonas8019).<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>No, they weren't personally in presence, however the world-famous celebs were notably consisted of in a slide presentation on social and sweepstakes gambling establishments - the questionable websites providing both totally free casino-style video games and financially rewarding rewards, such as money, gift cards or cryptocurrency. In one ad, the fist-pumping Seacrest is seen plugging Chumba Casino, where anyone can 'bet 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 websites are just two cogs in the multibillion-dollar industry that now discovers itself besieged by lawsuits. In the eyes of many video gaming corporations, not to discuss lawsuit plaintiffs and state regulators, sweepstakes casinos act as conventional casinos, just without the oversight, consumer defenses and tax laws. So not only can they prevent the high 24-percent federal [sports betting](https://nohio.org/index.php/User:BobbyeOgle556) levy, but [sweepstakes operators](https://groups.chat/read-blog/10961_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) 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 revenue last year alone. Now the company faces allegations of illegal [sports betting](https://wiki.vst.hs-furtwangen.de/wiki/User:Collette4945) in a New York suit that declares VGW utilizes celeb endorsers to 'produce a veneer of authenticity' around its item. (See VGW's statement listed below)<br>
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<br>'I'm unsure" if you do not trust us, you can trust Paris Hilton" is a winning message for companies operating multibillion-dollar illegal operations out of places like Malta, Isle of Man, or US mail drops,' Friday's presenter, Howard Glaser of gaming corporation Light & Wonder, informed DailyMail.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, in addition to NBA stars [Karl-Anthony Towns](https://losangelesgalaxyfansclub.com/read-blog/5663_how-fantasy-betting-app-development-companies-and-sports-developers.html) and Paul George - none of whom use any distinctions between traditional gambling 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 prompts fans to dip into Chumba Casino, where numerous - however not all - video games are free<br>
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<br>Drake has a handle social sweeps gambling establishment, Stake, that he frequently promotes on social networks<br>
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<br>Read More<br>
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<br>Donald Trump 'set to call NBA team owner as US ambassador to Italy'<br>
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<br>Instead, ads normally focus around the social element of the gambling establishments, while omitting the capacity for actual gaming losses.<br>
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<br>Others tempt consumers with pledges of prizes. One such operator, Stake, ran a social networks advertisement revealing off Drake's cars and trucks, planes and estates before pivoting to video of the rap artist playing online casino-style games.<br>
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<br>'Daddy, why do we have so much money?' read the first caption on the screen.<br>
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<br>Another caption discussed: 'Because I never ever quit.'<br>
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<br>The inconsistency between [sports betting](https://social.japrime.id/read-blog/23405_for-sports-gambling-to-be-legalised.html) sites 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), discussed its members are not in direct competitors with online gambling establishments and sportsbooks. Furthermore, according to SPGA data, the majority of the gamers on social-sweepstakes casinos are [sports betting](https://dev.fleeped.com/read-blog/88_sport-betting-industry-seeks-to-protect-itself.html) complimentary.<br>
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<br>'Most social sweeps consumers never make a purchase,' the SPGA representative informed DailyMail.com. 'The minority of clients who make purchases do so in quantities far smaller sized than the normal deposit or bet size at real-money online gambling sites.'<br>
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<br>Social gambling establishments provide consumers an opportunity to play casino-style games with good friends. Players have the choice to purchase valueless currency often described as 'gold coins,' which can not be exchanged genuine cash, however can be utilized to unlock numerous [functions](https://octomo.co.uk/read-blog/6519_how-to-play-bet9ja-online.html) within the video games.<br>
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<br>But within the world of social casinos exists sweepstakes video gaming, allowing customers to obtain other currency called 'sweeps coins' that can be exchanged for money 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 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 cash and other things of worth.<br>
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<br>The Philadelphia 76ers' Paul George is seen promoting a Global Poker occasion<br>
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<br>Social sweeps gambling establishment Stake ran an advertisement displaying Drake's automobiles, planes and estates<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](https://www.yewiki.org/User:DamienCochran) gambling establishments are prohibited in all however seven states, which has actually helped to fuel the popularity of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which don't require usually require 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, allow customers to submit mail-in demands for free sweeps coins, offered the gamers follow painfully particular instructions. What's more, players are frequently rewarded with sweeps coins simply for signing up, therefore providing a reason to attempt their hands at any number of games for a chance to win - or lose - real money.<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 product is the totally free casino-style gaming, and the real-stakes competition is merely a method of promoting their bread and butter.<br>
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<br>'Social sweepstakes video games are merely a form of online entertainment,' an SPGA spokesperson informed DailyMail.com by e-mail. 'No purchase is needed to play at social casinos with sweepstakes prizes. Consumers never ever have to pay for an opportunity to win prizes. That lack of a purchase requirement - or" consideration" - is a crucial difference between social sweeps and conventional online [sports betting](https://sensualmarketplace.com/read-blog/6400_the-ins-and-outs-of-betting-on-the-nfl-draft.html) sites like gambling establishments.'<br>
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<br>Think about the manner in which McDonald's utilizes its [yearly Monopoly](https://youtoosocialnetwork.com/read-blog/1259_online-betting-firms-gamble-on-soccer-mad-nigeria.html) game to promote its food: Customers aren't paying to gamble, but rather they're buying hamburgers and french fries that use them the chance to win financially rewarding prizes, such as a $1 million jackpot.<br>
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<br>And without a purchase requirement, or 'consideration', the video game itself does not meet the meaning of gambling in the US.<br>
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<br>'Sweepstakes are a long-standing technique for promoting all sort of everyday businesses in the United States, everything from burgers to publication memberships to coffee and home improvement shops,' the SPGA spokesperson told DailyMail.com. 'Sweepstakes promos are regularly utilized by a who's who of household names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'<br>
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<br>But to many [sports betting](https://kiigasofthub.com/read-blog/10133_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) market insiders, that argument doesn't 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 beginning 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 permanently and they're usually not tied to casino-style video games of opportunity,' Wallach informed DailyMail.com. 'They're just cash free gifts.<br>
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<br>'The sweepstakes [casinos] possess none of the attributes typically associated with McDonald's-design sweepstakes promotions,' Wallach continued. 'Besides running in eternity, the sweepstakes casinos use" casino-like" payouts, usually 80 percent or more of incomes, whereas the normal payment percentage for a short-term promotional sweepstakes is a minor share of the profits earned by the company [usually less than one percent]'<br>
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<br>Wallach fasts to liken the [online social](https://higgledy-piggledy.xyz/index.php/User:JinaLyng50835) sweeps casinos to the [internet coffee](https://ifairy.world/read-blog/1361_online-betting-firms-gamble-on-soccer-mad-nigeria.html) shops that sprang up in Florida, using clients the chance to play casino-style games for real prizes. A lot of those brick-and-mortar establishments have actually since been shuttered over allegations of illegal gaming.<br>
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<br>DJ Khaled is among numerous celebrity spokespeople for VGW's Global Poker brand name<br>
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<br>Now, [Wallach](https://losangelesgalaxyfansclub.com/read-blog/5675_online-betting-firms-gamble-on-soccer-mad-nigeria.html) argues, social sweeps gambling establishments need to face similar scrutiny.<br>
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<br>'These distinctions are not arbitrary,' Wallach stated of social sweeps casinos. 'They have consistently been pointed out by courts and state chief law officer as crucial aspects in determining that a sweepstakes promotion remained in truth a guise for unlawful gaming.'<br>
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<br>Among the casino market's leading trade organizations, the American Gaming Association, is now pushing legislators to investigate sweepstakes operators and, in many cases, enact brand-new legislation on the problem.<br>
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<br>'Consumers are being denied of protections and states are giving up substantial tax and revenue chances as this gambling changes that performed through regulated channels,' read a well-circulated AGA memo.<br>
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<br>And then there are the complainants who have 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 admitting any misbehavior, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action lawsuit, 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 lawsuit, which is mainly comparable to its predecessors, New york city state residents Lamar Prater and Rebecca Pratt both declare to have actually lost well over $1,000 to VGW, which is described in the filing as an 'illegal [sports betting](https://philadelphiaflyersclub.com/read-blog/8431_start-winning-with-pcg-college-football-picks.html) business. '<br>
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<br>Apple and Google have likewise been named as offenders in claims for hosting the sweepstakes sites. But unlike VGW, neither tech company reacted to DailyMail.[com's demand](https://melaninbook.com/read-blog/59385_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) for remark.<br>
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<br>'We normally don't comment on matters before the courts,' a VGW representative informed DailyMail.com through e-mail. 'However, we keep in mind that this claim has actually only just been submitted with the court and VGW has not been officially served.<br>
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<br>'We have full confidence in our compliance with all laws and policies where we operate, and remain confident about the future,' the spokesperson continued. 'We continue to offer our free-to-play video games across the majority of The United States and Canada, as we have for more than a decade, developing not just great games, user experiences and entertainment, however also guaranteeing this is done securely, responsibly and at the greatest level of requirements.<br>
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<br>'More broadly, we 'd restate that class actions and other lawsuits and arbitrations are relatively common throughout the online social games market (and the US more broadly), and our standard practice is that we intend to vigorously defend any claim which may be brought against us.'<br>
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<br>The problems between traditional online [sports betting](http://wiki-tb-service.com/index.php?title=Benutzer:ReginaWoollacott) and sweepstakes gambling establishments 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 back 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](https://parikshagk.in/forum/index.php?qa=48899&qa_1=warner-bros-discovery-sets-stage-for-potential-cable-deal-by) that expert athletes are hawking illegal [sports betting](https://www.grandtribunal.org/wiki/User:JimmyHazon92) 'sweeps' websites while at the very same time the leagues wish to project a strong stance against unlawful gambling - especially when trying to tamp down the occasional gambling 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 ban from the NBA over accusations he conspired with bettors. However, to be clear, Porter's scandal is [unrelated](https://noaisocial.pro/read-blog/2377_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) to anything involving social or sweepstakes gambling establishments.<br>
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<br>Along with VGW, Apple and Google are being taken legal action against for hosting presumably prohibited gambling websites<br>
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<br>Regardless, Glaser sees sweepstakes gambling establishments as a major concern for leagues such as the NBA.<br>
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<br>'I 'd anticipate that a league crackdown on professional athletes endorsing sweepstakes websites is a matter of when, not if,' Glaser added.<br>
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<br>Neither an NBA representative 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 overlooked to respond to DailyMail.com emails.<br>
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<br>Asked if their star endorsers have a duty to explain to customers the distinctions and similarities between iGaming and sweepstakes gambling establishments, VGW insisted there is absolutely nothing more that needs to be done.<br>
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<br>'We have full self-confidence in our influencer and ambassadorial partnerships, and our organization practices more broadly,' the spokesperson stated. 'A few of our values are" our gamers 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 opponent of sweepstakes sites, sees things in a different way.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>'Celebrities who provide their names to dubious unlawful gambling sites are, at a minimum, putting their track records at danger as well as courting civil and class actions by consumers who declare damage,' Glaser said. 'There is likewise some risk that state regulators and state lawyers general rope celebrity endorsers into enforcement efforts for helping with illegal gambling.'<br>
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<br>New YorkNBADrakeParis Hilton<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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