New York State Attorney General Letitia James announced on June 6 that her office has shut down online lottery casinos operating in New York State. In collaboration with the New York State Gaming Commission, they identified 26 online platforms that offered players slot machines, table games, and sports betting using virtual currencies that could be exchanged for cash and prizes.
New York State law prohibits online platforms from providing gambling involving valuable items’ risks, including virtual currencies that can be exchanged for cash or prizes. Online lottery casinos are not regulated by New York State audits and other regulatory bodies, thus unable to ensure games are not manipulated, putting New Yorkers at risk.
James issued cease-and-desist orders to the operators of these platforms, demanding them to halt all illegal gambling activities. Consequently, all 26 platforms will cease selling lottery tokens in New York State.
“Online lottery casinos are illegal, dangerous, and pose a significant threat to people’s financial well-being,” James said in a statement, expressing gratitude for the cooperation of institutions like the State Gaming Commission.
Chairman of the New York State Gaming Commission, Brian O’Dwyer, stated, “These so-called ‘lottery’ games are reckless, unsafe, and illegal… We encourage adults seeking to gamble to choose legal operators.”
Lottery casinos allow users to play traditional casino games such as slot machines, blackjack, and sports betting using virtual lottery tokens that can be exchanged for cash or prizes like Amazon gift cards. Players often purchase these virtual lottery tokens bundled with other virtual currencies. According to New York State law, the use of virtual currencies exchangeable for cash in probability games constitutes “gambling,” regardless of how the casino operator describes the acquisition of virtual currencies by players.
The 26 online platforms that were shut down include: Chanced, Chumba, DingDingDing, Fliff, Fortune Coins, Fortune Wheelz, Funrize, FunzCity, Global Poker, Golden Hearts Games, High 5 Casino, Jackpota, Luckyland, McLuck, Mega Bonanza, NoLimitCoins, Play Fame, RealPrize, Sidepot, SpinBlitz, Sportzino, SweepSlots, Sweeptastic, TaoFortune, Yay Casino, Zula Casino.
Individuals seeking help for gambling problems can access resources and support through the New York State Addiction Services and Support Office; those seeking assistance can also call the confidential hotline at 1-877-8-HOPENY (1-877-846-7369) or text HOPENY (467369), available 24/7.