James accused these platforms, many of which had already announced their departure from the state, of offering illegal gambling.

In a press release, she said their operations violated the legal definition of gambling in New York, even if traditional currency is not directly involved in gameplay.

Working in conjunction with the New York State Gaming Commission (NYSGC), the Office of the Attorney General (OAG) identified the platforms for providing unregulated gambling services to New Yorkers.

The cease-and-desist action taken against the operators forced all 26 sweepstakes casinos to terminate the sale of virtual sweepstakes coins in the state.

The state has expressed concern over the inherent risks these platforms pose.

Because sweepstakes casinos do not fall under the jurisdiction of state gambling oversight, they are not subject to audits or consumer protections required of legal operators.

According to the OAG, players have no assurances that games are fair, winnings will be paid, or personal data will be protected.

James credited her office’s collaboration with the NYSGC and legislative support from Sen. Joseph Addabbo for facilitating the enforcement action.

According to the order, the 26 sweepstakes casinos impacted by this enforcement action are Chanced, Chumba, DingDingDing, Fliff, Fortune Coins, Fortune Wheelz, Funrize, FunzCity, Global Poker, Golden Hearts Games, High 5 Casino, and Jackpota.

Also named in the order are Luckyland, McLuck, Mega Bonanza, NoLimitCoins, Play Fame, RealPrize, Sidepot, SpinBlitz, Sportzino, SweepSlots, Sweeptastic, TaoFortune, Yay Casino, and Zula Casino.

Lawmakers show support for order

Gaming Commission chairman Brian O’Dwyer reinforced that sweepstakes casinos operate outside the bounds of law and regulation, making them vulnerable to manipulation and exploitation.

He reiterated the state’s preference for players to engage only with legal and licensed gaming operators.

Sen. Addabbo, who has sponsored a bill to ban sweepstakes casinos in New York, highlighted the broader implications of the issue, noting the role such sites can play in promoting underage gambling, identity theft, and addiction.

He warned that the accessibility of these illegal platforms undermines public safety by allowing unregulated entities to collect personal data from users and exposing vulnerable populations to financial exploitation.

Assemblywoman Carrie Woerner, chair of the Assembly’s Standing Committee on Racing and Wagering, also expressed concern in the press release, particularly about the appeal of sweepstakes casinos to teenagers.

She described these games as a potential gateway to gambling addiction and praised the attorney general’s office for its intervention.

In an email sent to Next.io, the Social and Promotional Games Association (SPGA) said about the cease-and-desist order in New York that it is “disappointed” in the decision.

It added: “Despite multiple attempts to engage directly with New York lawmakers and regulators, our outreach has gone ignored. Instead of working collaboratively to establish clear, modern rules for platforms that offer free-to-play games and do not require a purchase to win, the state has opted for overreach.”

The ban follows growing national scrutiny of sweepstakes-based gambling models, which often exploit regulatory grey areas by marketing themselves as promotional games rather than wagering platforms.

Several legislative efforts to ban sweepstakes casinos are underway, including one in Montana that has already been approved. Connecticut and Louisiana could also join it soon.

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