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 looks before the Louisiana Senate for Friday's hearing on prohibited [sports betting](https://heatwave.app/read-blog/389_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html).<br>
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<br>No, they weren't personally in participation, but the world-famous celebrities were conspicuously consisted of in a slide discussion on social and [sweepstakes casinos](https://ifairy.world/read-blog/1567_just-how-much-are-americans-spending-on-sports-betting.html) - the questionable websites offering both totally free casino-style video games and financially rewarding rewards, such as cash, gift cards or cryptocurrency. In one ad, the fist-pumping Seacrest is seen plugging Chumba Casino, where anyone can 'play for complimentary,' while a [crop-topped Hilton](https://learn.ivlc.com/read-blog/62_how-to-attract-users-to-my-fantasy-sports-platform.html) holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>
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<br>The websites are just 2 cogs in the multibillion-dollar industry that now discovers itself besieged by suits. In the eyes of many gaming corporations, not to mention suit plaintiffs and state regulators, sweepstakes casinos serve as traditional gambling establishments, just without the oversight, customer protections and tax laws. So not just can they avoid the steep 24-percent federal gambling levy, but sweepstakes operators aren't subject to regulative hurdles like anti-money laundering and responsible-gaming [protections](https://iuridictum.pecina.cz/w/U%C5%BEivatel:KashaWillson).<br>
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<br>One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in profits in 2015 alone. Now the business faces [accusations](https://35.237.164.2/wiki/User:RudyHenderson5) of prohibited gaming in a New york city suit that declares VGW uses star endorsers to 'create a veneer of authenticity' around its product. (See VGW's statement below)<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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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 operating multibillion-dollar prohibited operations out of places 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 celebrities from gambling enthusiasts Drake and DJ Khaled to swimmer Michael Phelps, along with NBA stars [Karl-Anthony](https://drapia.org/11-WIKI/index.php/User:ClevelandRoby89) Towns and [Paul George](https://origintraffic.com/read-blog/1692_how-are-betting-odds-calculated.html) - none of whom provide any differences between traditional gaming and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, one of lots of sweepstakes gambling establishments found online<br>
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<br>Ryan Seacrest advises fans to play at Chumba Casino, where lots of - however not all - video games are totally free<br>
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<br>Drake has a deal with social sweeps gambling establishment, Stake, that he frequently touts on social networks<br>
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<br>Find out more<br>
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<br>Donald Trump 'set to call NBA group owner as US ambassador to Italy'<br>
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<br>Instead, advertisements normally focus around the social element of the gambling establishments, while [leaving](https://nubiantalk.site/read-blog/12264_how-fantasy-betting-app-development-companies-and-sports-developers.html) out the capacity for real [sports betting](https://farmwoo.com/read-blog/9519_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html) losses.<br>
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<br>Others lure consumers with pledges of rewards. One such operator, Stake, ran a social networks ad flaunting Drake's vehicles, airplanes and mansions before pivoting to video footage of the rapper playing online casino-style video games.<br>
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<br>'Daddy, why do we have a lot money?' check out the first caption on the screen.<br>
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<br>Another caption described: 'Because I never ever quit.'<br>
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<br>The discrepancy between gaming sites and social or sweepstakes gambling establishments is a bit complex, however operators of the latter insist they're not involved 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 gambling establishments and sportsbooks. Furthermore, according to SPGA information, many of the gamers on social-sweepstakes gambling establishments are playing for totally free.<br>
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<br>'Most social sweeps customers never buy,' the SPGA representative told DailyMail.com. 'The minority of consumers who make purchases do so in quantities far smaller than the normal deposit or wager size at real-money online gambling websites.'<br>
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<br>Social gambling establishments provide clients a possibility to play casino-style games with buddies. Players have the choice to purchase valueless currency frequently referred to as 'gold coins,' which can not be exchanged for genuine money, but can be utilized to unlock different functions within the video games.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>But within the world of social gambling establishments exists sweepstakes gaming, enabling consumers to obtain other currency known as 'sweeps coins' that can be exchanged for money or other rewards.<br>
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<br>And therein lies the capacity for monetary losses, like the ones claimed by complainants in Florida, Georgia, New Jersey and New York. One gamer informed the Washington Post he lost more than $100,000 on sweepstakes casinos in the past year after continuing to purchase more coins in pursuit of cash and other things of value.<br>
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<br>The Philadelphia 76[ers' Paul](http://www.asystechnik.com/index.php/Benutzer:CaraWaring456) 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://twitemedia.com/read-blog/71_the-ins-and-outs-of-betting-on-the-nfl-draft.html) automobiles, aircrafts and mansions<br>
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<br>Karl-Anthony Towns of the New York Knicks is another NBA star [plugging](https://www.ayuujk.com/read-blog/84_sport-betting-industry-looks-to-protect-itself.html) VGW's Global Poker<br>
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<br>Traditional online gambling establishments are prohibited in all however seven states, which has actually helped to fuel the appeal of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which do not require generally need identification. However, [websites](https://munidigital.iie.cl/wiki/index.php?title=Usuario:BelindaEnderby) like Chumba will request IDs from gamers attempting to withdraw any funds.<br>
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<br>Many websites, like the crypto-compatible Stake, allow clients to submit mail-in demands for free sweeps coins, provided the players follow painfully specific directions. What's more, players are often rewarded with simply for registering, thus giving them a reason to try their hands at any variety of casino video games for an opportunity to win - or lose - real money.<br>
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<br>So why are sweepstakes sites allowed 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 item is the free casino-style video gaming, and the real-stakes competition is simply a method of promoting their bread and butter.<br>
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<br>'Social sweepstakes video games are simply a type of online home entertainment,' an SPGA representative told DailyMail.com by e-mail. 'No purchase is needed to dip into social gambling establishments with sweepstakes rewards. [Consumers](https://hcsxy2024.com/read-blog/2058_the-history-of-the-nfl-and-how-to-bank-on-it.html) never need to pay for a chance to win rewards. That lack of a purchase requirement - or" consideration" - is an essential difference between social sweeps and conventional online gaming websites like [gambling establishments](https://sotawiki.net/sota/User:HilarioNxy).'<br>
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<br>Think of the manner in which McDonald's utilizes its yearly Monopoly video game to promote its food: Customers aren't paying to bet, but rather they're buying hamburgers and fries that offer them the possibility to win profitable prizes, such as a $1 million jackpot.<br>
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<br>And without a purchase requirement, or 'factor to consider', the video game itself doesn't satisfy the definition of [sports betting](https://www.heesah.com/read-blog/2217_why-every-cricket-fan-need-to-try-the-all-cricket-id-gaming-platform.html) in the US.<br>
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<br>'Sweepstakes are a long-standing method for promoting all type of daily organizations in the United States, everything from burgers to publication subscriptions to coffee and home enhancement stores,' the SPGA representative told DailyMail.com. 'Sweepstakes promos are routinely 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 numerous gambling market insiders, that argument does not cut it.<br>
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<br>For starters, gaming attorney Daniel Wallach explains, McDonald's Monopoly game doesn't run indefinitely. Rather, it has a distinct start and end, thus suggesting the sweepstakes is not the fast-food giant's main product. Instead, the sweepstakes is being utilized 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 usually not connected to casino-style games of opportunity,' Wallach informed DailyMail.com. 'They're just cash giveaways.<br>
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<br>'The sweepstakes [casinos] have none of the characteristics frequently connected with McDonald's-design sweepstakes promos,' Wallach continued. 'Besides running in eternity, the sweepstakes casinos use" casino-like" payouts, usually 80 percent or more of incomes, whereas the common payout percentage for a short-lived advertising sweepstakes is an insignificant share of the earnings earned by the business [usually less than one percent]'<br>
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<br>Wallach fasts to liken the online social sweeps casinos to the internet coffee shops that sprang up in Florida, offering customers the opportunity to play casino-style games for real rewards. Many of those brick-and-mortar establishments have actually because been shuttered over accusations of prohibited gaming.<br>
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<br>DJ Khaled is among several 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 distinctions are not approximate,' Wallach said of social sweeps casinos. 'They have consistently been pointed out by courts and state attorney general of the United States as crucial elements in determining that a sweepstakes promotion remained in fact a guise for prohibited gaming.'<br>
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<br>Among the gambling establishment industry's leading trade organizations, the American Gaming Association, is now pressing lawmakers to examine sweepstakes operators and, sometimes, enact new legislation on the problem.<br>
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<br>'Consumers are being denied of securities and states are forgoing significant tax and profits chances as this [sports betting](https://kenyansocial.com/read-blog/1335_the-history-of-the-nfl-and-how-to-bet-on-it.html) changes that performed 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 casino operators paid a combined $14.2 million in four 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 prevent legal expenses and continued litigation.<br>
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<br>Michael Phelps has signed a handle the VGW Group, which owns Global Poker<br>
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<br>In the current suit, which is mostly comparable to its predecessors, New york city state locals 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 also been called as accuseds in suits for hosting the sweepstakes sites. But unlike VGW, neither tech business reacted to DailyMail.com's demand for comment.<br>
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<br>'We typically do not comment on matters before the courts,' a [VGW representative](https://peekz.eu/read-blog/251_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) told DailyMail.com via e-mail. 'However, we note that this claim has only just been submitted with the court and VGW has actually not been formally served.<br>
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<br>'We have complete self-confidence in our compliance with all laws and [regulations](https://social.ppmandi.com/read-blog/204_sport-betting-industry-seeks-to-protect-itself.html) where we run, and stay positive about the future,' the representative continued. 'We continue to use our free-to-play games across many of The United States and Canada, as we have for more than a decade, producing not only excellent video games, user experiences and entertainment, however likewise ensuring this is done safely, properly and at the highest level of requirements.<br>
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<br>'More broadly, we 'd restate that class actions and other lawsuits and arbitrations are fairly common throughout the online social games industry (and the US more broadly), and our standard practice is that we intend to strongly safeguard any claim which may be brought versus us.'<br>
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<br>The problems between conventional online gaming 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 gaming titans like FanDuel and DraftKings.<br>
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<br>'It's ironic that professional athletes are hawking prohibited [sports betting](https://southwales.com/read-blog/307_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) 'sweeps' sites while at the exact same time the leagues desire to project a strong position against prohibited gambling - specifically when trying to tamp down the periodic [sports betting](https://micircle.in/read-blog/443_the-ins-and-outs-of-betting-on-the-nfl-draft.html) scandal,' Glaser informed DailyMail.com.<br>
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<br>It was simply 8 months ago that Toronto Raptors [forward Jontay](https://www.sportfansunite.com/read-blog/271_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) Porter got a life time restriction from the NBA over accusations he conspired with gamblers. However, to be clear, Porter's scandal is unrelated to anything including social or sweepstakes casinos.<br>
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<br>In addition to VGW, Apple and Google are being sued for hosting presumably prohibited [sports betting](https://sfqatest.sociofans.com/read-blog/712_how-to-play-bet9ja-online.html) sites<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Regardless, Glaser sees sweepstakes casinos as a significant concern for leagues such as the NBA.<br>
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<br>'I 'd anticipate that a league crackdown on athletes endorsing [sweepstakes](https://sosmed.almarifah.id/read-blog/1283_the-history-of-the-nfl-and-how-to-bet-on-it.html) sites is a matter of when, not if,' Glaser included.<br>
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<br>Neither an NBA spokesman nor the players' representatives reacted to DailyMail.com's ask for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps also neglected to react to DailyMail.com emails.<br>
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<br>Asked if their star endorsers have a duty to explain to consumers the differences and resemblances between iGaming and sweepstakes gambling establishments, VGW firmly [insisted](https://surgiteams.com/index.php/User:ZDYMeagan1984957) there is absolutely nothing more that requires to be done.<br>
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<br>'We have full self-confidence in our influencer and ambassadorial collaborations, and our organization practices more broadly,' the spokesperson stated. 'A few of our worths are" our players come initially" 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 websites, sees things in a different way.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>'Celebrities who lend their names to shady unlawful [sports betting](https://metacouture.co/read-blog/24232_score-big-wins-how-sports-betting-software-drives-growth-and-engagement.html) sites are, at a minimum, putting their [credibilities](https://bexopro.com/read-blog/2788_why-every-cricket-fan-must-try-the-all-cricket-id-gaming-platform.html) at threat as well as courting civil and class actions by consumers who declare harm,' Glaser stated. 'There is also some risk that state regulators and state attorney generals of the United States rope celeb endorsers into enforcement efforts for facilitating unlawful [sports betting](http://swwwwiki.coresv.net/index.php?title=%E5%88%A9%E7%94%A8%E8%80%85:DesmondSkelton9).'<br>
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<br>New YorkNBADrakeParis Hilton<br>
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