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](https://zapzclubhouse.com/read-blog/2741_for-sports-gambling-to-be-legalised.html) [sports betting](https://wow.twinear.com/read-blog/985_for-sports-gambling-to-be-legalised.html).<br>
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<br>No, they weren't personally in presence, however the world-famous stars were notably consisted of in a slide discussion on social and sweepstakes casinos - the questionable sites using both free casino-style video games and profitable 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 sites are simply two cogs in the multibillion-dollar market that now discovers itself besieged by claims. In the eyes of many video gaming corporations, not to mention suit plaintiffs and state regulators, sweepstakes gambling establishments serve as traditional casinos, only without the oversight, customer defenses and tax laws. So not only can they avoid the steep 24-percent federal gambling levy, however sweepstakes operators aren't subject to regulatory obstacles 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 deals with allegations of illegal gambling in a New York claim that declares VGW uses celebrity endorsers to 'develop a veneer of authenticity' around its product. (See VGW's statement below)<br>
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<br>'I'm not sure" if you don't trust us, you can rely on Paris Hilton" is a winning message for companies [running multibillion-dollar](https://tartar.app/read-blog/1728_things-you-need-to-understand-about-rafting-adventures.html) 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 consist of a series of stars from [sports betting](https://socialsmerch.com/read-blog/10516_things-you-need-to-learn-about-rafting-adventures.html) lovers Drake and DJ Khaled to swimmer Michael Phelps, as well as NBA stars Karl-Anthony Towns and Paul George - none of whom offer any differences between conventional gambling and .<br>
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<br>Paris Hilton is seen plugging Wow Vegas, one of lots of 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>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Drake has a deal with social sweeps casino, Stake, that he frequently touts on social media<br>
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<br>Read 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](https://sneakerxp.com/sports-betting/uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling-3/) generally center around the social element of the gambling establishments, while omitting the capacity for real [sports betting](https://parentingliteracy.com/wiki/index.php/User:NickiHorst6682) losses.<br>
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<br>Others tempt consumers with guarantees of prizes. One such operator, Stake, ran a social media advertisement displaying 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 so much cash?' check out the first caption on the screen.<br>
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<br>Another caption described: 'Because I never ever gave up.'<br>
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<br>The discrepancy between gambling websites and social or sweepstakes casinos is a bit complicated, but operators of the latter insist they're not involved 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 competitors with online casinos and sportsbooks. Furthermore, according to SPGA data, the majority of the gamers on social-sweepstakes casinos are [sports betting](http://www.vmeste-so-vsemi.ru/wiki/%D0%A3%D1%87%D0%B0%D1%81%D1%82%D0%BD%D0%B8%D0%BA:WilfredY48) totally free.<br>
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<br>'Most social [sweeps customers](https://sportysocialspace.com/read-blog/11997_why-every-cricket-fan-ought-to-try-the-all-cricket-id-gaming-platform.html) never ever buy,' the SPGA representative informed DailyMail.com. 'The minority of customers who make purchases do so in amounts far smaller than the typical deposit or wager size at real-money online gaming sites.'<br>
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<br>Social casinos offer clients a possibility to play casino-style games with friends. Players have the choice to purchase valueless [currency frequently](https://twixxor.com/read-blog/8925_how-much-are-americans-spending-on-sports-betting.html) described as 'gold coins,' which can not be exchanged for genuine money, however can be used to unlock various features within the video games.<br>
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<br>But within the world of social casinos exists sweepstakes gaming, permitting clients to get other [currency referred](https://www.eruptz.com/read-blog/17205_how-to-play-bet9ja-online.html) to as 'sweeps coins' that can be [exchanged](https://wooshbit.com/read-blog/18754_things-you-need-to-understand-about-rafting-adventures.html) for cash or other prizes.<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 City. One player informed the Washington Post he lost more than $100,000 on sweepstakes casinos in the previous year after continuing to buy more coins in pursuit of money and other things of value.<br>
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<br>The Philadelphia 76ers' Paul George is seen promoting a Global Poker event<br>
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<br>Social sweeps gambling establishment Stake ran an ad flaunting Drake's cars, aircrafts 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 Poker<br>
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<br>Traditional online gambling establishments are prohibited in all but seven states, which has actually assisted to fuel the popularity of sweepstakes gambling establishments.<br>
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<br>Anyone over the age of 18 can access the sweepstakes websites, which don't need usually need identification. However, websites like Chumba will request 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 send mail-in ask for free sweeps coins, supplied the players follow painfully specific instructions. What's more, gamers are frequently rewarded with sweeps coins merely for registering, therefore providing them a reason to attempt their hands at any number of casino games for a possibility to win - or lose - genuine cash.<br>
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<br>So why are sweepstakes websites permitted to run in 48 states, while online casinos are banned in all however 7?<br>
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<br>According to the stakeholders, their item is the free casino-style gaming, and the real-stakes competition is just a method of promoting their support.<br>
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<br>'Social sweepstakes games are simply a type of online home entertainment,' an SPGA representative informed DailyMail.com by email. 'No purchase is required to play at social gambling establishments with sweepstakes prizes. Consumers never ever need to spend for an opportunity to win rewards. That lack of a purchase requirement - or" consideration" - is an important difference in between social sweeps and conventional online gambling websites like gambling establishments.'<br>
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<br>Consider the method that McDonald's uses its annual Monopoly game to promote its food: Customers aren't paying to bet, however rather they're buying hamburgers and fries that offer them the opportunity to win rewarding 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 fulfill the definition of gambling in the US.<br>
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<br>'Sweepstakes are a long-standing method for promoting all type of daily companies in the United States, whatever from burgers to magazine memberships to coffee and home improvement stores,' the SPGA spokesperson informed DailyMail.com. 'Sweepstakes promos are routinely used 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 lots of gambling industry experts, that argument doesn't 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, consequently suggesting the sweepstakes is not the fast-food giant's primary product. Instead, the sweepstakes is being utilized to promote real products like french fries, shakes, and the Filet-O-Fish.<br>
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<br>'They don't last forever and they're usually not tied to casino-style video games of possibility,' Wallach told DailyMail.com. 'They're simply money giveaways.<br>
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<br>'The sweepstakes [gambling establishments] possess none of the attributes commonly connected with McDonald's-style sweepstakes promos,' Wallach continued. 'Besides running in all time, the sweepstakes casinos use" casino-like" payouts, generally 80 percent or more of earnings, whereas the common payment portion for a short-lived promotional sweepstakes is a minor share of the income earned by the company [usually 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 casinos to the internet coffee shops that sprang up in Florida, using clients the opportunity to play casino-style video games for real rewards. A number of those brick-and-mortar facilities have because been shuttered over accusations of illegal [sports betting](https://olympiquedemarseillefansclub.com/read-blog/12371_start-off-winning-with-pcg-college-football-picks.html).<br>
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<br>DJ Khaled is among several celebrity spokespeople for VGW's Global Poker brand name<br>
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<br>Now, Wallach argues, social sweeps casinos need to face similar examination.<br>
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<br>'These distinctions are not approximate,' Wallach said of social sweeps gambling establishments. 'They have consistently been cited by courts and state chief law officer as key consider determining that a sweepstakes promotion remained in fact a guise for unlawful [sports betting](https://famenest.com/read-blog/56537_for-sports-gambling-to-be-legalised.html).'<br>
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<br>Among the casino market's leading trade organizations, the American Gaming Association, is now pressing legislators to investigate sweepstakes operators and, in many cases, enact brand-new legislation on the concern.<br>
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<br>'Consumers are being denied of defenses and states are passing up substantial tax and earnings chances as this [sports betting](https://namesdev.com/read-blog/15188_how-much-are-americans-spending-on-sports-betting.html) changes that performed through regulated channels,' read a well-circulated AGA memo.<br>
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<br>And after that there are the plaintiffs who have actually sued social gambling establishments in more than a lots states.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Sweepstakes casino operators paid a combined $14.2 million in 4 different cases in Kentucky without admitting any misdeed, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action lawsuit, stating the settlement was made to avoid legal expenses and continued litigation.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Michael Phelps has signed a deal with the VGW Group, which owns Global Poker<br>
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<br>In the latest claim, which is mainly comparable to its predecessors, New york city state locals [Lamar Prater](https://www.hb9lc.org/wiki/index.php/User:SantiagoHamm06) and Rebecca Pratt both claim to have actually lost well over $1,000 to VGW, which is described in the filing as an 'prohibited [sports betting](https://systemcheck-wiki.de/index.php?title=Benutzer:ChristineBattle) business. '<br>
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<br>Apple and Google have also been named as defendants in suits 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 talk about matters before the courts,' a VGW representative told DailyMail.com by means of email. 'However, we note that this claim has only just been filed with the court and VGW has actually not been formally served.<br>
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<br>'We have complete confidence in our compliance with all laws and guidelines where we operate, and remain positive about the future,' the spokesperson continued. 'We continue to provide our free-to-play video games throughout many of North America, as we have for more than a years, producing not just great video games, user experiences and home entertainment, however also guaranteeing this is done securely, [responsibly](https://olympiquedemarseillefansclub.com/read-blog/12364_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) and at the greatest level of requirements.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>'More broadly, we 'd restate that class actions and other litigations and arbitrations are fairly typical across the online social games market (and the US more broadly), and our standard practice is that we intend to vigorously protect any claim which may be brought versus us.'<br>
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<br>The concerns between conventional online [sports betting](https://wow.t-mobility.co.il/read-blog/47_enhance-your-business-opportunities-with-efficient-sports-apps.html) and sweepstakes casinos could prove bothersome for some celeb 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 paradoxical that professional athletes are [hawking unlawful](https://www.yewiki.org/User:LaurenCade5444) [sports betting](https://twixxor.com/read-blog/8925_how-much-are-americans-spending-on-sports-betting.html) wagering 'sweeps' websites while at the very same time the leagues wish to predict a strong stance against prohibited [sports betting](https://messengerkivu.com/read-blog/2394_the-history-of-the-nfl-and-how-to-bet-on-it.html) - specifically when trying to tamp down the periodic gambling scandal,' Glaser informed DailyMail.com.<br>
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<br>It was simply eight months ago that Toronto Raptors forward Jontay Porter got a life time [restriction](http://addsub.wiki/index.php/User:YettaValley) from the NBA over accusations he [conspired](https://pediascape.science/wiki/User:MilfordLongshore) with bettors. However, to be clear, Porter's scandal is unrelated to anything involving social or [sweepstakes gambling](http://kitsap.whigdev.com/read-blog/3104_online-betting-firms-gamble-on-soccer-mad-nigeria.html) establishments.<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Along with VGW, Apple and Google are being demanded hosting allegedly illegal gambling sites<br>[bit.ly](https://bit.ly/Bet9jaPromotionCodeYOHAIG)
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<br>Regardless, Glaser sees sweepstakes casinos as a significant issue for leagues such as the NBA.<br>
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<br>'I 'd expect that a league crackdown on athletes endorsing sweepstakes websites is a matter of when, not if,' Glaser included.<br>
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<br>Neither an NBA representative nor the players' agents responded to DailyMail.com's demands for comment. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise neglected to react to DailyMail.com e-mails.<br>
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<br>Asked if their celeb endorsers have an [obligation](https://celticfansclub.com/read-blog/10339_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) to discuss to consumers the distinctions and resemblances between iGaming and sweepstakes casinos, VGW firmly insisted there is 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 business practices more broadly,' the spokesperson said. 'Some of our values are" our players come initially" 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 opponent of sweepstakes websites, sees things in a different way.<br>
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<br>'Celebrities who provide their names to shady unlawful gaming sites are, at a minimum, putting their credibilities at danger along with courting civil and class actions by customers who allege harm,' Glaser said. 'There is also some risk that state regulators and state lawyers general rope star endorsers into enforcement efforts for helping with unlawful gaming.'<br>
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<br>New YorkNBADrakeParis Hilton<br>
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