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 unlawful gaming.<br>
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<br>No, they weren't personally in attendance, however the world-famous celebs were conspicuously consisted of in a slide discussion on social and sweepstakes gambling establishments - the controversial websites using both free casino-style games and rewarding prizes, such as money, present cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'bet 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 just 2 cogs in the multibillion-dollar market that now finds itself besieged by lawsuits. In the eyes of numerous gaming corporations, not to discuss suit plaintiffs and state regulators, sweepstakes casinos function as standard casinos, only without the oversight, customer securities and tax laws. So not only can they prevent the high 24-percent federal gaming levy, but aren't subject to regulative difficulties like anti-money laundering and responsible-gaming protections.<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 faces accusations of prohibited gaming in a New york city claim that claims VGW utilizes star endorsers to 'create a veneer of authenticity' around its item. (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 business operating multibillion-dollar illegal operations out of locations 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 series of celebs from [sports betting](https://doomelang.com/read-blog/53311_online-betting-firms-gamble-on-soccer-mad-nigeria.html) enthusiasts Drake and DJ Khaled to swimmer Michael Phelps, as well as NBA stars Karl-Anthony Towns and [Paul George](https://learn.ivlc.com/read-blog/44_for-sports-gambling-to-be-legalised.html) - none of whom provide any distinctions in between traditional [sports betting](https://www.hb9lc.org/wiki/index.php/User:LizaJ89850274) and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, one of numerous sweepstakes gambling establishments found online<br>
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<br>Ryan Seacrest advises fans to dip into Chumba Casino, where many - but not all - games are complimentary<br>
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<br>Drake has an offer with social sweeps gambling establishment, Stake, that he frequently touts on social media<br>
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<br>Find out 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, advertisements generally focus around the social element of the casinos, while leaving out the potential for real gambling losses.<br>
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<br>Others lure customers with guarantees of prizes. One such operator, Stake, ran a social networks ad showing off Drake's vehicles, planes and estates before pivoting to video footage of the rap artist 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>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Another caption described: 'Because I never ever offered up.'<br>
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<br>The discrepancy between gaming sites and social or sweepstakes gambling establishments is a bit complex, but 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), explained its members are not in direct competition with online casinos and sportsbooks. Furthermore, according to SPGA information, most of the players on social-sweepstakes casinos are playing for complimentary.<br>
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<br>['Most social](https://redmonde.es/read-blog/113_how-to-withdraw-from-bet9ja-8-step-guide-to-money-in-your-wins.html) sweeps clients never ever make a purchase,' the SPGA spokesperson told DailyMail.com. 'The minority of clients who make purchases do so in quantities far smaller sized than the common deposit or bet size at real-money online gaming websites.'<br>
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<br>Social casinos provide customers a chance to play casino-style games with good friends. Players have the option to purchase valueless currency often described as 'gold coins,' which can not be exchanged for real money, however can be utilized to open different functions within the video games.<br>
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<br>But within the world of social casinos exists sweepstakes video gaming, enabling customers to get other currency known as 'sweeps coins' that can be [exchanged](https://oeclub.org/index.php/User:TwilaKushner) for cash or other rewards.<br>
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<br>And therein lies the potential for financial losses, like the ones declared 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 casinos in the past 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 occasion<br>
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<br>Social sweeps gambling establishment Stake ran an ad displaying Drake's cars, airplanes and mansions<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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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 gambling establishments are prohibited in all however seven states, which has actually assisted to sustain the appeal of sweepstakes gambling establishments.<br>
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<br>Anyone over the age of 18 can access the sweepstakes sites, which do not need normally need recognition. However, sites like Chumba will request for IDs from gamers attempting to withdraw any funds.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Many sites, like the crypto-compatible Stake, enable customers to send mail-in demands for complimentary sweeps coins, supplied the gamers follow painfully particular guidelines. What's more, players are often rewarded with sweeps coins merely for registering, therefore providing them a factor to try their hands at any variety of casino video games for a chance to win - or lose - genuine money.<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 product is the complimentary casino-style video gaming, and the [real-stakes competitors](https://doomelang.com/read-blog/53311_online-betting-firms-gamble-on-soccer-mad-nigeria.html) is just a method of promoting their support.<br>
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<br>'Social sweepstakes games are just a kind of online entertainment,' an SPGA spokesperson told DailyMail.com by email. 'No purchase is needed to dip into social gambling establishments with sweepstakes prizes. Consumers never ever have to spend for an opportunity to win prizes. That lack of a purchase requirement - or" factor to consider" - is a vital distinction between social sweeps and traditional online gambling [websites](https://heatwave.app/read-blog/389_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) like casinos.'<br>
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<br>Think about the manner in which McDonald's uses its [annual Monopoly](https://www.hb9lc.org/wiki/index.php/User:MaddisonForeman) game to promote its food: Customers aren't paying to bet, however rather they're buying hamburgers and french fries that provide 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 'factor to consider', the game itself does not satisfy the meaning of [sports betting](https://iprofile.sv3.gramick.dev/read-blog/3124_things-you-need-to-know-about-rafting-adventures.html) in the US.<br>
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<br>'Sweepstakes are an enduring technique for promoting all kinds of everyday companies in the United States, everything from hamburgers to magazine memberships to coffee and home improvement stores,' the SPGA spokesperson told DailyMail.com. 'Sweepstakes promos 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 industry experts, that argument does not cut it.<br>
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<br>For starters, video gaming lawyer Daniel Wallach explains, McDonald's Monopoly video game does not run indefinitely. Rather, it has a distinct beginning and end, thereby recommending the [sweepstakes](https://social.vetmil.com.br/read-blog/15496_for-sports-gambling-to-be-legalised.html) is not the fast-food giant's primary item. Instead, the sweepstakes is being utilized to promote real items like french fries, shakes, and the Filet-O-Fish.<br>
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<br>'They do not last forever and they're usually not connected to casino-style games of possibility,' Wallach told DailyMail.com. 'They're simply cash free gifts.<br>
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<br>'The sweepstakes [gambling establishments] possess none of the qualities typically associated with McDonald's-style sweepstakes promotions,[' Wallach](https://ifairy.world/read-blog/1379_for-sports-gambling-to-be-legalised.html) continued. 'Besides running in all time, the sweepstakes casinos use" casino-like" payouts, normally 80 percent or more of revenues, whereas the typical payout percentage for a short-term promotional sweepstakes is an insignificant share of the earnings made by the business [generally less than one percent]'<br>
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<br>Wallach fasts to compare the online social sweeps casinos to the internet coffee shops that sprang up in Florida, using customers the chance to play casino-style video games for real rewards. Much of those brick-and-mortar establishments have since been shuttered over allegations of illegal gambling.<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 must deal with comparable examination.<br>
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<br>'These distinctions are not arbitrary,' Wallach stated of social sweeps gambling establishments. 'They have actually repeatedly been pointed out by courts and state attorney generals as essential elements in identifying that a sweepstakes promotion was in reality a guise for prohibited gaming.'<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>One of the gambling establishment market's leading trade companies, the American Gaming Association, is now pushing legislators to examine sweepstakes operators and, in many cases, enact brand-new legislation on the issue.<br>
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<br>'Consumers are being denied of defenses and states are forgoing substantial tax and earnings opportunities as this gambling changes that carried out 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 sued social [casinos](https://wiki.snooze-hotelsoftware.de/index.php?title=Benutzer:JeffereyHalstead) in more than a lots states.<br>
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<br>Sweepstakes casino operators paid a combined $14.2 million in 4 separate cases in Kentucky without admitting any misdeed, according to the Washington Post. Meanwhile VGW accepted pay $11.75 million in one class-action suit, stating the settlement was made to avoid legal costs 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 current suit, which is mainly comparable to its predecessors, New York state homeowners Lamar Prater and Rebecca Pratt both [declare](https://namesdev.com/read-blog/15227_online-betting-firms-gamble-on-soccer-mad-nigeria.html) to have actually lost well over $1,000 to VGW, which is explained in the filing as an 'prohibited [sports betting](https://www.proathletediscuss.com/read-blog/409_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 offenders in lawsuits for [hosting](https://www.womplaz.com/read-blog/95_enhance-your-business-opportunities-with-efficient-sports-apps.html) the sweepstakes sites. But unlike VGW, neither tech business responded to DailyMail.com's request for remark.<br>
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<br>'We usually do not comment on [matters](https://sme.ass.in.th/read-blog/2302_how-to-attract-users-to-my-fantasy-sports-platform.html) before the courts,' a VGW spokesperson told DailyMail.com through e-mail. 'However, we keep in mind that this claim has 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 representative continued. 'We continue to provide our free-to-play video games across the majority of North America, as we have for more than a years, producing not just fantastic games, user experiences and home entertainment, but likewise guaranteeing this is done securely, properly and at the greatest level of requirements.<br>
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<br>'More broadly, we 'd repeat that class actions and other litigations and arbitrations are reasonably common across the online social video games industry (and the US more broadly), and our standard practice is that we plan to strongly protect any claim which might be brought against us.'<br>
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<br>The issues in between traditional online gambling and sweepstakes casinos might prove bothersome for some celeb endorsers.<br>
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<br>Towns, a star center with the Knicks, and the 76ers' George both endorse VGW's Global Poker brand name while the NBA is partnered with traditional video [gaming titans](https://ai.tienda/read-blog/7279_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) like FanDuel and DraftKings.<br>
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<br>'It's ironic that professional athletes are hawking illegal [sports betting](https://tripta.social/read-blog/1494_sport-betting-industry-looks-to-protect-itself.html) wagering 'sweeps' websites while at the exact same time the leagues wish to predict a strong stance against prohibited gambling - particularly when attempting to tamp down the periodic [sports betting](https://catvcommunity.com.tr/read-blog/4403_missouri-sports-betting-ballot-measure-approved-by-voters.html) scandal,' Glaser informed DailyMail.com.<br>
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<br>It was simply eight months ago that Toronto Raptors forward Jontay Porter received a life time ban from the NBA over accusations he conspired with bettors. 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 demanded hosting supposedly illegal gambling websites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a significant problem for leagues such as the NBA.<br>
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<br>'I 'd anticipate that a league crackdown on professional athletes backing sweepstakes websites refers when, not if,[' Glaser](https://collegetalks.site/read-blog/11876_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) added.<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Neither an NBA representative nor the gamers' representatives responded to DailyMail.com's requests for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise disregarded to react to [DailyMail](https://www.social.united-tuesday.org/read-blog/19472_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html).com emails.<br>
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<br>Asked if their celebrity endorsers have a responsibility to describe to clients the differences and resemblances in between iGaming and sweepstakes gambling establishments, VGW insisted there is absolutely nothing more that requires to be done.<br>
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<br>'We have complete confidence in our influencer and ambassadorial collaborations, and our organization practices more broadly,' the spokesperson said. 'Some of our worths are" our gamers 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 sites, sees things differently.<br>
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<br>'Celebrities who provide their names to shady prohibited gaming websites are, at a minimum, putting their credibilities at threat in addition to courting civil and class actions by consumers who allege damage,' Glaser stated. 'There is likewise some threat that state regulators and state attorney generals of the United States rope star endorsers into enforcement efforts for helping with prohibited gaming.'<br>
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<br>New YorkNBADrakeParis Hilton<br>
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