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 [sports betting](https://bytes-the-dust.com/index.php/User:KristinaQ78).<br>
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<br>No, they weren't personally in participation, however the world-famous stars were conspicuously included in a slide discussion on social and sweepstakes casinos - the questionable websites using both free casino-style games and profitable prizes, such as money, gift cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'play for free,' 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 just two cogs in the multibillion-dollar market that now discovers itself [besieged](https://sfqatest.sociofans.com/read-blog/716_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) by claims. In the eyes of numerous video gaming corporations, not to point out suit complainants and state regulators, sweepstakes gambling establishments serve as standard casinos, just without the oversight, consumer protections and tax laws. So not just can they avoid the high 24-percent federal [sports betting](https://social.ishare.la/read-blog/1115_for-sports-gambling-to-be-legalised.html) levy, however sweepstakes operators aren't subject to regulative hurdles like anti-money laundering and [responsible-gaming protections](https://chateando.net/read-blog/219_how-to-withdraw-from-bet9ja-8-step-guide-to-money-in-your-wins.html).<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 accusations of prohibited gaming in a New york city claim that declares VGW uses star endorsers to 'produce 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 operating multibillion-dollar illegal 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 range of stars from [sports betting](https://iuridictum.pecina.cz/w/U%C5%BEivatel:VernitaPhelan) lovers Drake and DJ Khaled to [swimmer Michael](https://social.midnightdreamsreborns.com/read-blog/13689_score-big-wins-how-sports-betting-software-drives-growth-and-engagement.html) Phelps, along with NBA stars Karl-Anthony Towns and Paul George - none of whom use any differences in between standard gambling and sweepstakes play.<br>
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<br>Paris Hilton is seen plugging Wow Vegas, one of many sweepstakes casinos 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 complimentary<br>
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<br>Drake has a deal with social sweeps casino, Stake, that he frequently touts on social networks<br>
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<br>Learn 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, advertisements normally focus around the social aspect of the casinos, while omitting the potential for real gambling 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 vehicles, aircrafts and estates before pivoting to footage of the rap artist playing online casino-style 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 explained: 'Because I never quit.'<br>
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<br>The discrepancy in between gambling websites and social or sweepstakes gambling establishments is a bit intricate, but operators of the latter insist they're not involved with the former.<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 competitors with online gambling establishments and sportsbooks. Furthermore, according to SPGA data, the majority of the players on social-sweepstakes gambling establishments are [sports betting](https://namesdev.com/read-blog/15172_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) complimentary.<br>
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<br>'Most social sweeps customers never buy,' the SPGA spokesperson told [DailyMail](https://mixup.wiki/index.php/User:GloryFer54).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 gaming websites.'<br>
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<br>Social casinos provide customers an opportunity to play casino-style games with buddies. Players have the option to buy worthless currency typically referred to as 'gold coins,' which can not be exchanged genuine money, but can be utilized to open different functions within the games.<br>
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<br>But within the world of social gambling establishments exists sweepstakes gaming, permitting customers to obtain other currency referred to as 'sweeps coins' that can be exchanged for cash or other prizes.<br>
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<br>And therein lies the capacity for financial 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 gambling establishments in the past year after continuing to purchase more coins in [pursuit](https://si-sudagro.net/cdc-hiruak/index.php?qa=153577&qa_1=fantasy-betting-development-companies-sports-developers) of cash and other things of worth.<br>
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<br>The Philadelphia 76ers' Paul George is seen promoting a Worldwide Poker event<br>
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<br>Social sweeps casino Stake ran an advertisement showing off Drake's cars and trucks, aircrafts and mansions<br>
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<br>[Karl-Anthony Towns](https://projectblueberryserver.com/index.php/User:EnriquetaMais99) 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 but seven states, which has actually assisted 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 require typically require identification. However, websites like Chumba will request IDs from gamers trying to withdraw any funds.<br>
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<br>Many sites, like the crypto-compatible Stake, allow clients to send mail-in requests for complimentary sweeps coins, [offered](https://social.ishare.la/read-blog/1115_for-sports-gambling-to-be-legalised.html) the gamers follow painfully specific instructions. What's more, players are often rewarded with sweeps coins simply for registering, thus giving them a factor to attempt their hands at any number of gambling establishment video games for a chance to win - or lose - real cash.<br>
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<br>So why are sweepstakes sites enabled to operate in 48 states, while online gambling establishments are banned in all but 7?<br>
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<br>According to the stakeholders, their item is the complimentary casino-style video gaming, and the real-stakes competitors is simply a means of promoting their bread and butter.<br>
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<br>'Social sweepstakes games are merely a form of online home entertainment,' an SPGA spokesperson informed DailyMail.com by email. 'No purchase is required to dip into social gambling establishments with sweepstakes rewards. [Consumers](https://social.stssconstruction.com/read-blog/20899_sport-betting-industry-wants-to-protect-itself.html) never ever need to pay for an opportunity to win rewards. That absence of a purchase requirement - or" consideration" - is a crucial distinction between social sweeps and traditional online gaming sites like casinos.'<br>
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<br>Consider the manner in which McDonald's utilizes its annual Monopoly video game to promote its food: Customers aren't paying to gamble, however rather they're purchasing hamburgers and french fries that offer them the opportunity to win financially [rewarding](https://accc.rcec.sinica.edu.tw/mediawiki/index.php?title=User:AguedaNeubauer) rewards, such as a $1 million jackpot.<br>
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<br>And without a [purchase](https://unightlifetalk.site/read-blog/2629_the-ins-and-outs-of-betting-on-the-nfl-draft.html) requirement, or 'consideration', the video game itself does not meet the meaning of gaming in the US.<br>
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<br>'Sweepstakes are a long-standing approach for promoting all type of everyday companies in the United States, everything from hamburgers to magazine subscriptions to coffee and home [improvement](https://youslade.com/read-blog/41356_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) stores,' the SPGA spokesperson informed DailyMail.com. 'Sweepstakes promos are regularly 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 many gambling industry experts, that argument does not cut it.<br>
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<br>For starters, gaming attorney Daniel Wallach mentions, McDonald's Monopoly game does not run forever. Rather, it has a well-defined beginning and end, therefore recommending the sweepstakes is not the fast-food giant's primary product. Instead, the sweepstakes is being used to promote genuine products like fries, shakes, and the Filet-O-Fish.<br>
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<br>'They don't last permanently and they're typically not connected to casino-style games of opportunity,' Wallach told DailyMail.com. 'They're just money giveaways.<br>
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<br>'The sweepstakes [casinos] possess none of the qualities typically connected with McDonald's-style sweepstakes promotions,' Wallach continued. 'Besides running in eternity, the sweepstakes gambling establishments offer" casino-like" payouts, usually 80 percent or more of earnings, whereas the normal payout portion for a momentary advertising sweepstakes is an unimportant share of the profits made by the company [normally less than one percent]'<br>
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<br>Wallach fasts to liken the online social sweeps gambling establishments to the web cafes that emerged in Florida, offering consumers the opportunity to play casino-style video games for real prizes. Many of those brick-and-mortar facilities have since been shuttered over accusations of illegal gaming.<br>
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<br>DJ Khaled is amongst a number of celeb spokespeople for VGW's [Global Poker](https://pittsburghpenguinsclub.com/read-blog/11628_things-you-need-to-learn-about-rafting-adventures.html) brand name<br>
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<br>Now, Wallach argues, social sweeps casinos ought to deal with comparable examination.<br>
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<br>'These distinctions are not approximate,' Wallach said of social sweeps casinos. 'They have actually repeatedly been pointed out by courts and state officer as key elements in determining that a sweepstakes promotion was in reality a guise for unlawful gaming.'<br>
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<br>Among the gambling establishment market's leading trade organizations, the American Gaming Association, is now pushing lawmakers to investigate sweepstakes operators and, in many cases, enact new [legislation](https://collegetalks.site/read-blog/11756_how-fantasy-betting-app-development-companies-and-sports-developers.html) on the problem.<br>
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<br>'Consumers are being denied of securities and states are passing up significant tax and earnings chances as this gaming replaces that conducted through controlled channels,' checked out 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 a combined $14.2 million in 4 separate cases in Kentucky without admitting any misbehavior, according to the Washington Post. Meanwhile VGW agreed to pay $11.75 million in one class-action claim, stating the settlement was made to avoid legal expenses and continued lawsuits.<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 most current claim, which is mainly similar to its predecessors, New York state homeowners Lamar Prater and Rebecca Pratt both declare to have lost well over $1,000 to VGW, which is explained in the filing as an 'illegal gaming enterprise. '<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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<br>Apple and Google have actually also been called as accuseds in lawsuits for hosting the sweepstakes websites. But unlike VGW, neither tech business [reacted](https://2flab.com/read-blog/702_exploring-the-sports-betting-industry-putting-ideas-into-practice.html) to DailyMail.com's ask for comment.<br>
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<br>'We typically do not comment on matters before the courts,' a VGW representative informed DailyMail.com through email. 'However, we keep in mind that this claim has only simply been submitted with the court and VGW has not been formally served.<br>
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<br>'We have complete confidence in our compliance with all laws and policies where we operate, and stay positive about the future,' the spokesperson continued. 'We continue to use our free-to-play video games throughout most of North America, as we have for more than a decade, producing not just terrific video games, user experiences and home entertainment, but likewise ensuring this is done securely, responsibly and at the highest level of standards.<br>
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<br>'More broadly, we 'd repeat that class actions and other litigations and arbitrations are relatively common across the online social video games industry (and the US more broadly), and our basic practice is that we intend to strongly defend any claim which might be brought against us.'<br>
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<br>The issues between conventional online [sports betting](https://www.yewiki.org/User:TravisScholl016) 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 traditional gaming titans like FanDuel and DraftKings.<br>
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<br>'It's ironic that professional athletes are hawking illegal [sports betting](https://islider.ru/read-blog/37805_how-to-attract-users-to-my-fantasy-sports-platform.html) wagering 'sweeps' sites while at the very same time the leagues want to predict a strong stance versus illegal [sports betting](https://reckoningz.com/things-you-need-to-know-about-rafting-adventures/) - particularly when trying to tamp down the periodic gaming scandal,' Glaser told DailyMail.com.<br>
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<br>It was just 8 months ago that Toronto Raptors forward Jontay Porter got a life time restriction from the NBA over claims he [conspired](https://zamhi.net/read-blog/15_for-sports-gambling-to-be-legalised.html) with bettors. However, to be clear, Porter's scandal is unassociated to anything including social or sweepstakes gambling establishments.<br>
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<br>Together with VGW, Apple and Google are being taken legal action against for hosting allegedly illegal [sports betting](https://drapia.org/11-WIKI/index.php/User:LZOJustina) sites<br>
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<br>Regardless, Glaser sees sweepstakes casinos as a significant issue for [leagues](http://classicalmusicmp3freedownload.com/ja/index.php?title=%E5%88%A9%E7%94%A8%E8%80%85:RockyA1175332) such as the NBA.<br>
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<br>'I 'd expect that a league crackdown on athletes endorsing sweepstakes sites is a matter of when, not if,' Glaser added.<br>
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<br>Neither an NBA spokesperson nor the players' agents reacted to DailyMail.com's demands for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps also overlooked to react to DailyMail.com e-mails.<br>
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<br>Asked if their celebrity endorsers have a duty to describe to consumers 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 complete confidence in our influencer and ambassadorial partnerships, and our company practices more broadly,' the spokesperson stated. 'Some of our values are" our gamers precede" 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 illegal](https://kiwiboom.com/read-blog/1816_for-sports-gambling-to-be-legalised.html) gambling websites are, at a minimum, putting their reputations at risk in addition to courting civil and class actions by consumers who allege damage,' Glaser stated. 'There is also some risk that state regulators and state chief law officers rope celebrity endorsers into enforcement efforts for helping with illegal [sports betting](https://heli.today/read-blog/63_how-to-attract-users-to-my-fantasy-sports-platform.html).'<br>
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<br>New YorkNBADrakeParis Hilton<br>[bet9ja.com](https://register.bet9ja.com/?btag=yohaig&promocode=yohaig)
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