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 looks before the Louisiana Senate for Friday's hearing on prohibited [sports betting](https://social.concienciacasanare.com/read-blog/14_online-betting-firms-gamble-on-soccer-mad-nigeria.html).<br>
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<br>No, they weren't personally in attendance, however the world-famous celebrities were notably included in a slide presentation on social and sweepstakes gambling establishments - the controversial sites offering both complimentary casino-style video games and financially rewarding rewards, such as money, gift cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'play for complimentary,' 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 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 point out suit complainants and state regulators, sweepstakes gambling establishments serve as conventional casinos, only without the oversight, consumer securities and tax laws. So not only can they prevent the steep 24-percent federal gaming levy, but sweepstakes operators aren't subject to regulatory 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 revenue in 2015 alone. Now the business deals with allegations of prohibited [sports betting](https://origintraffic.com/read-blog/1656_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) in a New York suit that claims VGW uses celeb endorsers to 'develop a veneer of legitimacy' around its product. (See VGW's declaration listed below)<br>
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<br>'I'm not exactly sure" if you don't trust us, you can trust Paris Hilton" is a winning message for business running multibillion-dollar [prohibited operations](http://famedoot.in/read-blog/79_online-betting-firms-gamble-on-soccer-mad-nigeria.html) out of locations like Malta, Isle of Man, or US mail drops,' Friday's presenter, Howard Glaser of [gaming corporation](https://vibrantclubs.com/read-blog/11455_the-ins-and-outs-of-betting-on-the-nfl-draft.html) Light & Wonder, told DailyMail.com.<br>
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<br>Sweepstakes endorsers consist of a series of celebrities from [gambling enthusiasts](https://inicknet.com/read-blog/2263_how-to-attract-users-to-my-fantasy-sports-platform.html) Drake and DJ Khaled to swimmer Michael Phelps, as well as NBA stars Karl-Anthony Towns 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 many sweepstakes gambling establishments found online<br>
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<br>Ryan Seacrest advises fans to play at Chumba Casino, where lots of - but not all - games are complimentary<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Drake has an offer with social sweeps gambling establishment, Stake, that he regularly touts on social networks<br>
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<br>Read 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, ads normally focus around the social aspect of the casinos, while omitting the potential for actual gambling losses.<br>
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<br>Others lure customers with promises of prizes. One such operator, Stake, ran a social media advertisement flaunting Drake's automobiles, planes and mansions before rotating to video footage of the rap artist playing online casino-style games.<br>
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<br>'Daddy, why do we have a lot money?' read the very first caption on the screen.<br>
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<br>Another caption discussed: 'Because I never quit.'<br>
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<br>The inconsistency between gaming sites and social or sweepstakes gambling establishments is a bit intricate, but operators of the latter insist they're not included with the previous.<br>
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<br>A representative for a market trade group, the Social and Promotional Gaming Association (SPGA), discussed its members are not in direct competition with online gambling establishments and sportsbooks. Furthermore, according to SPGA information, the majority of the players on social-sweepstakes casinos are [sports betting](https://demo.shoudyhosting.com/qtoa/?qa=86959/sports-minister-tracey-crouch-resigns-delay-betting-crackdown) totally free.<br>
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<br>'Most social sweeps customers never buy,' the SPGA spokesperson informed DailyMail.com. 'The minority of consumers who make purchases do so in quantities far smaller sized than the common deposit or bet size at real-money online [sports betting](https://ai.holiday/read-blog/12051_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) sites.'<br>
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<br>Social gambling establishments offer clients a possibility to [play casino-style](https://coptr.digipres.org/index.php/User:MargoFikes74082) 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, but can be utilized to unlock various functions within the games.<br>
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<br>But within the world of social gambling establishments exists sweepstakes video gaming, allowing customers to get other currency referred to 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 claimed by plaintiffs in Florida, Georgia, New Jersey and New York City. One gamer told the Washington Post he lost more than $100,000 on sweepstakes casinos in the previous year after continuing to purchase more coins in pursuit of money and other things of worth.<br>
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<br>The Philadelphia 76ers' Paul George is seen promoting an International Poker event<br>
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<br>Social sweeps gambling establishment Stake ran an ad displaying Drake's cars and trucks, 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 helped to fuel the popularity of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes websites, which do not need normally require recognition. However, [websites](https://letustalk.co.in/read-blog/11471_things-you-need-to-know-about-rafting-adventures.html) like Chumba will request for IDs from gamers attempting to withdraw any funds.<br>
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<br>Many sites, like the crypto-compatible Stake, allow customers to submit mail-in requests for complimentary sweeps coins, provided the players follow painfully specific guidelines. What's more, gamers are often [rewarded](https://gayplatform.de/read-blog/3788_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) with sweeps coins just for signing up, therefore providing a factor to try their hands at any number of gambling establishment games for a chance to win - or lose - genuine cash.<br>
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<br>So why are sweepstakes websites allowed to operate in 48 states, while online gambling establishments are prohibited in all however 7?<br>
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<br>According to the stakeholders, their product is the free casino-style video gaming, and the real-stakes competition is just a way of promoting their bread and butter.<br>
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<br>['Social sweepstakes](http://bedfordfalls.live/read-blog/117140_the-ins-and-outs-of-betting-on-the-nfl-draft.html) video games are just a type of online entertainment,' an SPGA representative informed DailyMail.com by e-mail. 'No purchase is required to dip into social gambling establishments with sweepstakes rewards. Consumers never have to pay for an opportunity to win rewards. That absence of a [purchase requirement](http://ringturbine.com80/index.php/User:LeathaField6) - or" factor to consider" - is a crucial difference in between social sweeps and conventional online gambling websites like casinos.'<br>
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<br>Consider the way that McDonald's uses its annual Monopoly video game to promote its food: [Customers aren't](https://encone.com/read-blog/46373_just-how-much-are-americans-spending-on-sports-betting.html) paying to gamble, however rather they're purchasing hamburgers and french fries that provide them the opportunity to win profitable rewards, 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 fulfill the meaning of gambling in the US.<br>
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<br>'Sweepstakes are an enduring approach for promoting all type of daily businesses in the United States, everything from [hamburgers](http://video.firstkick.live/read-blog/4640_the-ins-and-outs-of-betting-on-the-nfl-draft.html) to publication subscriptions to coffee and home improvement shops,' the SPGA spokesperson told DailyMail.com. 'Sweepstakes promotions are frequently 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 numerous gambling market experts, that argument doesn't cut it.<br>
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<br>For starters, gaming lawyer Daniel Wallach explains, McDonald's Monopoly video game doesn't run indefinitely. Rather, it has a well-defined beginning and end, thereby recommending the sweepstakes is not the fast-food giant's main product. Instead, the sweepstakes is being used to promote genuine items like fries, shakes, and the Filet-O-Fish.<br>
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<br>'They do not last permanently and they're generally not tied to casino-style games of chance,' Wallach informed DailyMail.com. 'They're simply money free gifts.<br>
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<br>'The sweepstakes [casinos] have none of the attributes commonly associated with McDonald's-design sweepstakes promos,' Wallach continued. 'Besides running in eternity, the sweepstakes casinos offer" casino-like" payments, usually 80 percent or more of profits, whereas the normal payment portion for a temporary advertising sweepstakes is an unimportant share of the profits made by the business [normally less than one percent]'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Wallach fasts to liken the online social sweeps gambling establishments to the internet coffee shops that emerged in Florida, offering consumers the chance to play casino-style video games for real prizes. Much of those brick-and-mortar facilities have actually because been shuttered over accusations of illegal [sports betting](https://nuo18.lt/read-blog/68705_things-you-need-to-understand-about-rafting-adventures.html).<br>
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<br>DJ Khaled is amongst several celebrity spokespeople for VGW's Global Poker brand name<br>
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<br>Now, Wallach argues, social sweeps gambling establishments should face similar scrutiny.<br>
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<br>'These distinctions are not arbitrary,' Wallach stated of social sweeps [casinos](https://miderde.de/index.php?title=Benutzer:AudraHinz7). 'They have consistently been mentioned by courts and state lawyer generals as essential aspects in figuring out that a sweepstakes promotion remained in [reality](https://www.contraband.ch/read-blog/41886_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) a guise for illegal gambling.'<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 operators and, sometimes, enact new legislation on the issue.<br>
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<br>'Consumers are being deprived of securities and states are forgoing significant tax and profits chances as this gaming replaces that conducted through regulated channels,' checked out a well-circulated AGA memo.<br>
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<br>And then there are the complainants who have actually sued social casinos in more than a lots states.<br>
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<br>Sweepstakes gambling establishment operators paid a combined $14.2 million in 4 different cases in Kentucky without admitting any misdeed, according to the Washington Post. Meanwhile VGW accepted pay $11.75 million in one class-action claim, stating the settlement was made to prevent legal expenses and [continued lawsuits](https://sotawiki.net/sota/User:HilarioNxy).<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 similar to its predecessors, New York state homeowners Lamar Prater and Rebecca Pratt both claim to have lost well over $1,000 to VGW, which is explained in the filing as an 'illegal [sports betting](https://clik.social/read-blog/19031_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) enterprise. '<br>
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<br>Apple and Google have actually also been called as defendants in lawsuits for hosting the sweepstakes websites. But unlike VGW, neither tech company reacted to DailyMail.com's request for comment.<br>
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<br>'We generally do not discuss matters before the courts,' a VGW representative told DailyMail.com via email. 'However, we keep in mind that this claim has actually only just been submitted 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 operate, and remain confident about the future,' the spokesperson continued. 'We continue to use our free-to-play games across most of The United States and Canada, as we have for more than a years, developing not only fantastic video games, user experiences and entertainment, but likewise guaranteeing this is done securely, properly and at the greatest level of standards.<br>
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<br>'More broadly, we 'd reiterate that class actions and other lawsuits and arbitrations are reasonably common across the online social video games market (and the US more broadly), and our standard practice is that we mean to vigorously safeguard any claim which may be brought versus us.'<br>
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<br>The problems in between standard online gambling and sweepstakes gambling establishments might prove bothersome for some star endorsers.<br>
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<br>Towns, a star center with the Knicks, and the 76ers' George both [endorse VGW's](http://www.vmeste-so-vsemi.ru/wiki/%D0%A3%D1%87%D0%B0%D1%81%D1%82%D0%BD%D0%B8%D0%BA:RussWhittle5845) Global Poker brand while the NBA is partnered with traditional gaming titans like FanDuel and .<br>
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<br>'It's paradoxical that expert athletes are hawking prohibited [sports betting](https://bikapsul.com/read-blog/1424_how-are-betting-odds-calculated.html) 'sweeps' sites while at the exact same time the leagues desire to project a strong stance versus illegal gambling - specifically when attempting to tamp down the periodic [sports betting](https://lets.chchat.me/read-blog/1973_compare-amp-review-oddsjet-de.html) scandal,' Glaser told [DailyMail](http://experienciacortazar.com.ar/wiki/index.php?title=Usuario:DylanSchuhmacher).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 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>In addition to 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 casinos as a major concern 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 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 also ignored to react to [DailyMail](https://wiki.snooze-hotelsoftware.de/index.php?title=Benutzer:LienODonnell).com e-mails.<br>[bet9ja.com](https://landing.bet9ja.com/aviator-bet9ja?btag=yohaig&promocode=yohaig)
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<br>Asked if their celeb endorsers have a duty to [explain](https://losangelesgalaxyfansclub.com/read-blog/5956_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) to consumers the distinctions and resemblances in 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 organization practices more broadly,' the spokesperson stated. 'Some of our worths are" our gamers 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>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>'Celebrities who lend their names to dubious prohibited gaming websites are, at a minimum, putting their reputations at danger as well as courting civil and class actions by consumers who declare damage,[' Glaser](https://clik.social/read-blog/19335_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) stated. 'There is also some danger that state regulators and state chief law officers rope celeb endorsers into enforcement efforts for assisting in unlawful [sports betting](https://www.heesah.com/read-blog/2078_enhance-your-business-opportunities-with-efficient-sports-apps.html).'<br>
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