commit 95b6e294ff4b62ad0f4bc66f805be6764038f8ff Author: milanyvo348561 Date: Thu Jan 2 10:35:26 2025 +0800 Add Sweepstakes Casino Controversy - And Celebrities' All-important Role diff --git a/Sweepstakes Casino Controversy - And Celebrities%27 All-important Role.-.md b/Sweepstakes Casino Controversy - And Celebrities%27 All-important Role.-.md new file mode 100644 index 0000000..2ba786e --- /dev/null +++ b/Sweepstakes Casino Controversy - And Celebrities%27 All-important Role.-.md @@ -0,0 +1,64 @@ +
The smiling faces of Paris Hilton and Ryan Seacrest made surprise appearances before the Louisiana Senate for Friday's hearing on unlawful gaming.
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No, they weren't personally in presence, but the world-famous stars were conspicuously included in a slide presentation on social and sweepstakes casinos - the questionable websites offering both totally free casino-style games and financially rewarding prizes, such as cash, gift cards or cryptocurrency. In one advertisement, the fist-pumping Seacrest is seen plugging Chumba Casino, where anybody can 'bet totally free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.
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The sites are simply two cogs in the multibillion-dollar industry that now finds itself besieged by claims. In the eyes of lots of gaming corporations, not to point out lawsuit plaintiffs and state regulators, sweepstakes gambling establishments serve as traditional gambling establishments, only without the oversight, consumer protections and tax laws. So not just can they prevent the steep 24-percent federal gambling levy, but sweepstakes operators aren't based on regulatory hurdles like anti-money laundering and responsible-gaming securities.
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One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in earnings last year alone. Now the company faces allegations of prohibited [sports betting](https://rhabits.io/read-blog/7420_missouri-sports-betting-ballot-measure-approved-by-voters.html) in a New york city claim that declares VGW uses star endorsers to 'create a veneer of authenticity' around its product. (See VGW's declaration listed below)
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'I'm not exactly sure" if you do not trust us, you can trust Paris Hilton" is a winning message for companies operating multibillion-dollar illegal operations out of places like Malta, Isle of Man, or US mail drops,' Friday's speaker, Howard Glaser of [video gaming](https://drapia.org/11-WIKI/index.php/User:HeidiDymock47) corporation Light & Wonder, told DailyMail.com.
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Sweepstakes endorsers consist of a variety of stars from [sports betting](https://18plus.fun/read-blog/45_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) enthusiasts Drake and DJ Khaled to swimmer Michael Phelps, as well as NBA stars Karl-Anthony Towns and Paul George - none of whom offer any distinctions between traditional [sports betting](https://www.womplaz.com/read-blog/78_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) and sweepstakes play.
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Paris Hilton is seen plugging Wow Vegas, among numerous sweepstakes gambling establishments discovered online
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Ryan Seacrest advises fans to play at Chumba Casino, where many - but not all - games are totally free
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Drake has a handle social sweeps casino, Stake, that he frequently promotes on social networks
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Find out more
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Donald Trump 'set to name NBA group owner as US ambassador to Italy'
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Instead, advertisements generally center around the social element of the casinos, while omitting the capacity for [actual gaming](https://mxlinkin.mimeld.com/read-blog/677_just-how-much-are-americans-spending-on-sports-betting.html) losses.
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Others lure clients with pledges of prizes. One such operator, Stake, ran a [social media](https://app.deepsoul.es/read-blog/405_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) advertisement showing off Drake's automobiles, planes and estates before rotating to video footage of the rapper playing online casino-style video games.
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'Daddy, why do we have a lot money?' read the very first caption on the screen.
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Another caption explained: 'Because I never ever gave up.'
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The discrepancy between [sports betting](https://ozoms.com/read-blog/11108_the-ins-and-outs-of-betting-on-the-nfl-draft.html) websites and social or sweepstakes gambling establishments is a bit complex, but operators of the latter insist they're not included with the former.
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A spokesperson for an industry trade group, the Social and Promotional Gaming [Association](https://collegetalks.site/read-blog/11872_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html) (SPGA), discussed its members are not in direct competition with online gambling establishments and sportsbooks. Furthermore, according to SPGA data, many of the gamers on establishments are [sports betting](https://youfurry.com/read-blog/37836_online-betting-firms-gamble-on-soccer-mad-nigeria.html) free.
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'Most social sweeps clients never buy,' the SPGA spokesperson told DailyMail.com. 'The minority of consumers who make purchases do so in amounts far smaller than the typical deposit or bet size at real-money online gaming sites.'
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Social gambling establishments use clients a possibility to play casino-style video games with friends. Players have the option to buy worthless currency typically referred to as 'gold coins,' which can not be exchanged for real cash, but can be used to open various features within the games.
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But within the world of social casinos exists sweepstakes gaming, permitting consumers to obtain other currency called 'sweeps coins' that can be exchanged for cash or other [rewards](https://devnew.judefly.com/index.php?link1=read-blog&id=3248_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html).
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And therein lies the potential for financial losses, like the ones declared by plaintiffs in Florida, Georgia, New Jersey and New York. One player told the Washington Post he lost more than $100,000 on sweepstakes casinos in the past year after continuing to buy more coins in pursuit of cash and other things of worth.
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The Philadelphia 76ers' Paul George is seen promoting an International Poker event
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Social sweeps gambling establishment Stake ran an ad flaunting Drake's automobiles, airplanes and estates
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Karl-Anthony Towns of the New York City Knicks is another NBA star plugging VGW's Global Poker
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Traditional online casinos are banned in all however 7 states, which has actually assisted to sustain the popularity of sweepstakes gambling establishments.
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Anyone over the age of 18 can access the sweepstakes websites, which don't need usually require identification. However, sites like Chumba will request for IDs from gamers attempting to withdraw any funds.
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Many websites, like the crypto-compatible Stake, allow clients to submit mail-in demands for totally free sweeps coins, provided the players follow painfully specific directions. What's more, gamers are often rewarded with [sweeps coins](http://touringtreffen.nl/read-blog/2417_how-much-are-americans-spending-on-sports-betting.html) merely for registering, thereby giving them a reason to try their hands at any number of [gambling establishment](https://www.kuyasia.com/read-blog/56_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html) video games for a possibility to win - or lose - real cash.
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So why are sweepstakes sites allowed to run in 48 states, while online casinos are prohibited in all however 7?
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According to the stakeholders, their product is the complimentary casino-style video gaming, and the real-stakes competition is merely a way of promoting their bread and butter.
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'Social sweepstakes [video games](http://woorichat.com/read-blog/10320_warner-bros-discovery-sets-stage-for-potential-cable-deal-by.html) are just a kind of online home entertainment,' an SPGA spokesperson told DailyMail.com by email. 'No purchase is needed to play at social gambling establishments with sweepstakes prizes. Consumers never ever need to pay for a chance to win rewards. That absence of a purchase requirement - or" factor to consider" - is a vital difference between social sweeps and standard online [sports betting](https://inicknet.com/read-blog/2263_how-to-attract-users-to-my-fantasy-sports-platform.html) websites like casinos.'
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Consider the manner in which McDonald's utilizes 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 chance to win lucrative prizes, such as a $1 million prize.
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And without a purchase requirement, or 'consideration', the video game itself doesn't meet the meaning of gaming in the US.
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'Sweepstakes are a long-standing technique for promoting all sort of everyday services in the United States, everything from burgers to magazine memberships to coffee and home enhancement stores,' the SPGA spokesperson told DailyMail.com. 'Sweepstakes promotions are routinely utilized by a who's who of home names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'
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But to lots of [sports betting](https://lovn1world.com/read-blog/2438_tennessee-sports-betting-top-4-legal-betting-sites-in-2024.html) industry experts, that argument doesn't cut it.
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For starters, video gaming lawyer Daniel Wallach explains, McDonald's Monopoly video 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.
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'They do not last permanently and they're typically not connected to casino-style video games of possibility,' Wallach told DailyMail.com. 'They're just cash giveaways.
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'The sweepstakes [gambling establishments] have none of the qualities frequently connected with McDonald's-design sweepstakes promotions,' Wallach continued. 'Besides running in perpetuity, the sweepstakes gambling establishments use" casino-like" payouts, normally 80 percent or more of incomes, whereas the common payout percentage for a short-term promotional sweepstakes is an insignificant share of the profits earned by the company [usually less than one percent]'
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Wallach is quick to compare the online social sweeps casinos to the web coffee shops that emerged in Florida, offering customers the chance to play casino-style video games for genuine rewards. A number of those brick-and-mortar facilities have considering that been shuttered over accusations of prohibited [sports betting](https://bikapsul.com/read-blog/1458_score-big-wins-how-sports-betting-software-drives-growth-and-engagement.html).
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DJ Khaled is amongst several celeb spokespeople for VGW's Global Poker brand
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Now, Wallach argues, social sweeps gambling establishments need to deal with comparable scrutiny.
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'These distinctions are not approximate,' Wallach said of social sweeps gambling establishments. 'They have actually consistently been cited by courts and state lawyer generals as crucial consider identifying that a sweepstakes promo remained in fact a guise for illegal [sports betting](https://origintraffic.com/read-blog/1656_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html).'
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One of the casino industry's leading trade organizations, the American Gaming Association, is now pressing lawmakers to examine sweepstakes operators and, in some cases, enact brand-new legislation on the concern.
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'Consumers are being deprived of defenses and states are giving up significant tax and profits opportunities as this gambling changes that carried out through regulated channels,' checked out a well-circulated AGA memo.
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And then there are the plaintiffs who have actually taken legal action against social casinos in more than a lots states.
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Sweepstakes casino operators paid a combined $14.2 million in four separate 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.
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Michael Phelps has signed a handle the VGW Group, which owns Global Poker
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In the current suit, which is mostly similar to its predecessors, New York state locals Lamar Prater and Rebecca Pratt both [declare](https://juryi.sn/read-blog/12074_warner-bros-discovery-sets-stage-for-potential-cable-deal-by.html) to have actually lost well over $1,000 to VGW, which is explained in the filing as an 'unlawful [sports betting](https://welcometohaiti.com/read-blog/15955_how-much-are-americans-spending-on-sports-betting.html) business. '
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Apple and Google have likewise been named as accuseds in suits for hosting the [sweepstakes sites](https://www.ayuujk.com/read-blog/87_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html). But unlike VGW, neither tech company reacted to DailyMail.com's ask for comment.
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'We usually don't discuss matters before the courts,' a VGW spokesperson informed DailyMail.com through email. 'However, we note that this claim has actually only simply been submitted with the court and VGW has not been formally served.
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'We have full confidence in our compliance with all laws and policies where we operate, and stay confident about the future,' the representative continued. 'We continue to offer our free-to-play video games throughout many of The United States and Canada, as we have for more than a decade, creating not just fantastic games, user experiences and home entertainment, but likewise guaranteeing this is done safely, responsibly and at the greatest level of requirements.
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'More broadly, we 'd restate that class actions and other litigations and arbitrations are fairly typical across the online social video games market (and the US more broadly), and our standard practice is that we plan to strongly safeguard any claim which might be brought against us.'
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The problems between conventional online [sports betting](https://metacouture.co/read-blog/24232_score-big-wins-how-sports-betting-software-drives-growth-and-engagement.html) and sweepstakes gambling establishments could prove problematic for some celeb endorsers.
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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 like FanDuel and DraftKings.
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'It's paradoxical that expert athletes are hawking prohibited [sports betting](http://www.engel-und-waisen.de/index.php/Benutzer:MckenzieWager9) wagering 'sweeps' sites while at the exact same time the leagues wish to project a strong stance against unlawful gaming - specifically when attempting to tamp down the periodic [sports betting](https://www.miptrucking.net/read-blog/1287_things-you-need-to-know-about-rafting-adventures.html) scandal,' Glaser told DailyMail.com.
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It was just 8 months ago that Toronto Raptors forward Jontay Porter got a life time restriction from the NBA over claims he conspired with bettors. However, to be clear, Porter's scandal is unassociated to anything including social or sweepstakes gambling establishments.
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Together with VGW, Apple and Google are being demanded hosting supposedly illegal [sports betting](https://www.proathletediscuss.com/read-blog/417_how-much-are-americans-spending-on-sports-betting.html) sites
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Regardless, Glaser sees sweepstakes gambling establishments as a significant concern for leagues such as the NBA.
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'I 'd expect that a league crackdown on athletes endorsing sweepstakes websites refers when, not if,' Glaser added.
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Neither an NBA representative nor the gamers' representatives reacted to DailyMail.com's ask for comment. For that matter, [spokespeople](https://afrocinema.org/read-blog/44797_uk-betting-firms-gamble-on-united-states-after-sports-wager-ruling.html) for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise disregarded to react to DailyMail.com emails.
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Asked if their star endorsers have a responsibility to explain to clients the distinctions and similarities between iGaming and sweepstakes casinos, VGW firmly [insisted](https://napolifansclub.com/read-blog/22930_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html) there is nothing more that requires to be done.
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'We have full confidence in our influencer and ambassadorial partnerships, and our service practices more broadly,' the spokesperson stated. 'A few of our values are" our players precede" and" we do what's right", and we put our worths at the core of whatever we do.'
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Glaser, an outspoken opponent of sweepstakes websites, sees things in a different way.
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'Celebrities who lend their names to shady prohibited gaming websites are, at a minimum, putting their reputations at risk along with courting civil and class actions by customers who allege harm,' Glaser said. 'There is also some danger that state regulators and state lawyers basic rope celeb endorsers into enforcement efforts for helping with prohibited [sports betting](https://www.hb9lc.org/wiki/index.php/User:JanieZahel205).'
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New YorkNBADrakeParis Hilton
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