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 gaming.<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 discussion on social and sweepstakes gambling establishments - the questionable sites providing both complimentary casino-style games and financially rewarding rewards, such as cash, present cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anyone can 'play for complimentary,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>The websites are simply 2 cogs in the multibillion-dollar industry that now finds itself besieged by suits. In the eyes of numerous video gaming corporations, not to point out suit complainants and state regulators, sweepstakes gambling establishments act as conventional gambling establishments, just without the oversight, consumer protections and tax laws. So not only can they prevent the steep 24-percent federal [sports betting](https://squishmallowswiki.com/index.php/User:EdenViles17) levy, but sweepstakes operators aren't subject to regulative 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 in 2015 alone. Now the company faces accusations of unlawful gambling in a New York claim that declares VGW uses celebrity endorsers to 'create a veneer of legitimacy' 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 rely on Paris Hilton" is a winning message for [business running](http://ringturbine.com80/index.php/User:SanfordCrotty4) multibillion-dollar unlawful operations out of places like Malta, Isle of Man, or US mail drops,' Friday's presenter, Howard Glaser of video gaming corporation Light & Wonder, told DailyMail.com.<br>
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<br>Sweepstakes endorsers include a variety 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 provide any distinctions between standard gambling and [sweepstakes play](https://munidigital.iie.cl/wiki/index.php?title=Usuario:AliciaRadecki).<br>
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<br>Paris Hilton is seen plugging Wow Vegas, among many sweepstakes gambling establishments found online<br>
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<br>Ryan Seacrest urges fans to dip into Chumba Casino, where numerous - 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 regularly promotes on social media<br>
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<br>Learn more<br>
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<br>[Donald Trump](http://www.seferpanim.com/read-blog/353_warner-bros-discovery-sets-stage-for-potential-cable-deal-by.html) 'set to name NBA team owner as US ambassador to Italy'<br>
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<br>Instead, ads typically focus around the social element of the casinos, while leaving out the capacity for real [sports betting](http://wiki-tb-service.com/index.php?title=Benutzer:YolandaVillalobo) losses.<br>
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<br>Others tempt consumers with promises of prizes. One such operator, Stake, ran a social networks advertisement flaunting Drake's cars and trucks, airplanes and mansions before rotating to video footage of the rap artist playing online casino-style video games.<br>
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<br>'Daddy, why do we have so much cash?' check out the very 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 in between [gambling websites](https://wiki.snooze-hotelsoftware.de/index.php?title=Benutzer:MollieVidler20) and social or sweepstakes gambling establishments is a bit complicated, however operators of the latter insist they're not involved with the previous.<br>
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<br>A representative for an industry trade group, the Social and Promotional Gaming Association (SPGA), described its members are not in direct competition with online casinos and sportsbooks. Furthermore, according to SPGA data, most of the [players](https://kiigasofthub.com/read-blog/10122_for-sports-gambling-to-be-legalised.html) on social-sweepstakes casinos are playing for complimentary.<br>
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<br>'Most social sweeps clients never ever buy,' the SPGA spokesperson told DailyMail.com. 'The minority of consumers who make purchases do so in amounts far smaller sized than the typical deposit or bet size at real-money online [sports betting](https://wiki.vifm.info/index.php/User:LeonardGallegos) websites.'<br>
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<br>Social gambling establishments use customers a chance to play casino-style video games with pals. Players have the choice to buy worthless currency often referred to as 'gold coins,' which can not be exchanged for genuine money, however can be used to open various functions within the games.<br>
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<br>But within the world of social gambling establishments exists sweepstakes gaming, enabling consumers 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 monetary losses, like the ones declared by complainants in Florida, Georgia, New Jersey and New York City. One gamer informed the Washington Post he lost more than $100,000 on sweepstakes casinos in the past year after continuing to buy more coins in pursuit of money and other things of value.<br>
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<br>The [Philadelphia](http://1600-6765.com/board_fyUJ95/176750) 76ers' Paul George is seen [promoting](https://squishmallowswiki.com/index.php/User:RichCallaghan80) a Worldwide Poker occasion<br>
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<br>Social sweeps casino Stake ran an ad showing off Drake's automobiles, planes and mansions<br>
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<br>Karl-Anthony Towns of the New York City Knicks is another NBA star plugging [VGW's Global](http://experienciacortazar.com.ar/wiki/index.php?title=Usuario:RamonWrixon34) Poker<br>
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<br>Traditional online gambling establishments are banned in all however seven states, which has [assisted](http://1600-6765.com/board_fyUJ95/176750) to fuel the appeal of sweepstakes casinos.<br>
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<br>Anyone over the age of 18 can access the sweepstakes websites, which don't require usually need [recognition](http://www.pickmemo.com/read-blog/11315_how-are-betting-odds-calculated.html). However, websites like Chumba will request IDs from players attempting to withdraw any funds.<br>
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<br>Many websites, like the crypto-compatible Stake, allow clients to send mail-in ask for complimentary sweeps coins, supplied the gamers follow painfully particular instructions. What's more, [players](https://www.eruptz.com/read-blog/17420_how-to-withdraw-from-bet9ja-8-step-guide-to-money-in-your-wins.html) are frequently rewarded with sweeps coins just for signing up, thereby offering them a factor to try their hands at any variety of gambling establishment games for a chance to win - or lose - genuine cash.<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 however 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 just a means of promoting their bread and butter.<br>
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<br>'Social sweepstakes games are simply a form of online entertainment,' an SPGA representative informed DailyMail.com by e-mail. 'No purchase is required to dip into social gambling establishments with sweepstakes prizes. Consumers never ever need to spend for an opportunity to win prizes. That absence of a purchase requirement - or" consideration" - is an essential difference between social sweeps and conventional online [sports betting](https://profesional.id/read-blog/113_compare-amp-review-oddsjet-de.html) sites like gambling establishments.'<br>
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<br>Consider the way that McDonald's utilizes its yearly Monopoly video game to promote its food: Customers aren't paying to gamble, however rather they're buying hamburgers and fries that provide them the chance to win financially rewarding rewards, such as a $1 million prize.<br>
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<br>And without a purchase requirement, or 'consideration', the video game itself doesn't meet the definition of gambling in the US.<br>
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<br>'Sweepstakes are a long-standing method for promoting all kinds of everyday businesses in the United States, everything from hamburgers to magazine subscriptions to coffee and home enhancement shops,' the SPGA representative told 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>
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<br>But to numerous gambling industry insiders, that argument doesn't cut it.<br>
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<br>For beginners, video gaming lawyer Daniel Wallach points out, McDonald's Monopoly video game does not run [indefinitely](https://skylockr.app/read-blog/198_the-ins-and-outs-of-betting-on-the-nfl-draft.html). Rather, it has a [distinct](https://app.theremoteinternship.com/read-blog/25799_sport-betting-industry-looks-to-protect-itself.html) beginning and end, therefore suggesting the sweepstakes is not the fast-food giant's primary item. 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 connected to casino-style games of chance,' Wallach informed DailyMail.com. 'They're just money giveaways.<br>
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<br>'The sweepstakes [gambling establishments] have none of the characteristics commonly connected with McDonald's-style sweepstakes promos,' Wallach continued. 'Besides running in eternity, the sweepstakes gambling establishments use" casino-like" payments, normally 80 percent or more of profits, whereas the normal payout percentage for a short-lived advertising sweepstakes is a trivial share of the profits made by the business [typically less than one percent]'<br>
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<br>Wallach is fast to compare the online social sweeps gambling establishments to the internet coffee shops that [emerged](https://zekond.com/read-blog/112505_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) in Florida, providing consumers the chance to play casino-style video games for real prizes. Much of those brick-and-mortar facilities have since been shuttered over accusations of illegal [sports betting](https://king-wifi.win/wiki/User:CaitlynX72).<br>
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<br>DJ Khaled is amongst a number of celebrity spokespeople for VGW's Global Poker brand name<br>
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<br>Now, Wallach argues, social sweeps gambling establishments ought to face comparable scrutiny.<br>
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<br>'These differences are not approximate,' Wallach said of social sweeps casinos. 'They have repeatedly been pointed out by courts and state attorney general of the United States as crucial consider determining that a sweepstakes promotion remained in fact a guise for illegal gaming.'<br>
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<br>One of the casino market's leading trade organizations, the American Gaming Association, is now pushing lawmakers to examine sweepstakes operators and, in some cases, enact new legislation on the problem.<br>
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<br>'Consumers are being deprived of protections and states are forgoing considerable tax and earnings opportunities as this gaming replaces that carried out through controlled channels,' read a well-circulated AGA memo.<br>
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<br>And after that there are the plaintiffs who have actually taken legal action against social gambling establishments in more than a dozen states.<br>
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<br>Sweepstakes casino [operators paid](http://experienciacortazar.com.ar/wiki/index.php?title=Usuario:ManuelaMcclendon) 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 suit, stating the settlement was made to [prevent legal](https://social.engagepure.com/read-blog/834_the-ins-and-outs-of-betting-on-the-nfl-draft.html) 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 newest lawsuit, which is mainly similar to its predecessors, New york city state residents 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 'unlawful gambling enterprise. '<br>
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<br>Apple and Google have likewise been called as accuseds in claims for hosting the sweepstakes sites. But unlike VGW, neither tech company reacted to [DailyMail.com's](https://younivix.com/read-blog/29902_the-ins-and-outs-of-betting-on-the-nfl-draft.html) demand for comment.<br>
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<br>'We typically don't discuss matters before the courts,' a VGW spokesperson informed [DailyMail](http://experienciacortazar.com.ar/wiki/index.php?title=Usuario:CruzWindsor2212).com via e-mail. 'However, we keep in mind that this claim has only simply been submitted with the court and VGW has actually not been [officially served](https://www.opentx.cz/index.php/U%C5%BEivatel:Arnulfo02U).<br>
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<br>'We have complete self-confidence in our compliance with all laws and guidelines where we operate, and stay confident about the future,' the representative continued. 'We continue to offer our [free-to-play games](https://www.tobeop.com/online-betting-firms-gamble-on-soccer-mad-nigeria-2/) throughout the majority of North America, as we have for more than a decade, creating not only terrific video games, user experiences and home entertainment, however also ensuring this is done safely, responsibly and at the greatest level of standards.<br>
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<br>'More broadly, we 'd restate that class actions and other litigations and arbitrations are reasonably typical across the online social games market (and the US more broadly), and our basic practice is that we plan to intensely protect any claim which may be brought against us.'<br>
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<br>The problems between standard online gambling and sweepstakes casinos could prove troublesome for some star 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 gaming titans like FanDuel and DraftKings.<br>
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<br>'It's paradoxical that professional athletes are hawking illegal [sports betting](https://connectingsparks.com/read-blog/25062_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) 'sweeps' websites while at the exact same time the wish to predict a strong position versus illegal gambling - especially when attempting to tamp down the periodic 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 restriction from the NBA over claims he conspired with bettors. However, to be clear, Porter's scandal is unrelated to anything involving social or sweepstakes casinos.<br>
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<br>Along with VGW, Apple and Google are being taken legal action against for hosting supposedly unlawful gambling sites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a major problem 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 refers when, not if,' Glaser added.<br>
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<br>Neither an NBA spokesman nor the gamers' representatives reacted to DailyMail.com's requests for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise overlooked to react to DailyMail.com emails.<br>
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<br>Asked if their star endorsers have a duty to discuss to customers the differences and resemblances between iGaming and sweepstakes casinos, VGW insisted 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 company practices more broadly,' the spokesperson stated. 'A few of our worths are" our gamers come first" and" we do what's right", and we put our values at the core of whatever we do.'<br>
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<br>Glaser, an outspoken challenger of sweepstakes websites, sees things in a different way.<br>
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<br>'Celebrities who lend their names to dubious unlawful gambling sites are, at a minimum, putting their credibilities at threat in addition to courting civil and class actions by consumers who declare damage,' Glaser stated. 'There is likewise some danger that state regulators and state chief law officers rope celeb endorsers into enforcement efforts for helping with unlawful gaming.'<br>
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