New York Legal System Cracks Down on Illegal Casinos

NEW YORK — A coalition of New York state officials, including Attorney General Letitia James, the State Gaming Commission, and Senator Joseph Addabbo, has launched a coordinated enforcement effort to shutter 26 online sweepstakes casinos allegedly operating illegally within the state.

The action comes in response to a growing number of online platforms offering virtual casino-style games under the guise of sweepstakes models—games that allow users to play with virtual coins that can be redeemed for cash or prizes. While marketed as legal alternatives to traditional gambling, the state has determined these sites violate current New York laws, which strictly prohibit unauthorized online casino gaming.

Sweepstakes casinos use virtual coins to let users play games for a chance to win real cash or prizes, but New York law still considers this illegal gambling.

Key Element	Details
Who	New York Attorney General Letitia James, State Gaming Commission, Senator Joseph Addabbo
What	Issued cease-and-desist letters to 26 online sweepstakes casinos operating illegally in New York
Why	Sweepstakes casinos use virtual coins redeemable for cash or prizes, violating New York gambling laws
Key Quote	“These sweepstakes casinos put individuals at risk of fraud and financial exploitation.” — Senator Joseph Addabbo
Examples of Flagged Sites	Chumba, Global Poker, Luckyland, Fliff, Funrize, Jackpota, Zula Casino, and others
Legal Context	Online casino gaming is illegal in New York; only licensed sports betting operators are allowed
Public Message	Officials urge consumers to avoid these sites and use only legal, regulated gambling platforms

Online Sweepstakes Model Deemed Unlawful

The Office of the Attorney General (OAG) and the Gaming Commission jointly issued cease-and-desist letters to a list of platforms including Chumba, Global Poker, Fliff, Luckyland, and 21 others. These platforms host games such as slots, table games, and even sports betting—all forms of gambling that, under state law, are only legal through regulated, licensed operators.

In their statement, officials clarified that despite the operators’ claims that players are merely purchasing sweepstakes coins or earning them through free entry, the ability to redeem those coins for real-world value effectively classifies the games as illegal online gambling.

“Online sweepstakes casinos are illegal, dangerous and can seriously ruin people’s finances,” said Attorney General Letitia James. “I thank the Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”

State Senator Joseph Addabbo, chair of the Senate Committee on Racing, Gaming and Wagering, voiced strong support for the crackdown, citing concerns over consumer safety, fraud, and underage gambling.

“These sweepstakes casinos put individuals at risk of fraud and financial exploitation,” Addabbo said. “They also create dangerous pathways for gambling addiction, especially among minors. This is not about taking away anyone’s livelihood, it’s about protecting New Yorkers.”

Brian O’Dwyer, Chairman of the New York State Gaming Commission, echoed those concerns, calling the platforms “unscrupulous, unsecure, and unlawful.” He added that the crackdown represents a significant step toward limiting the state’s illegal gambling market and encouraged users to only participate in gambling through licensed, regulated operators.

Consumer Protection at the Forefront

While New York has embraced legalized sports betting through authorized channels, online casino gaming remains illegal. The state has adopted a cautious approach, balancing the potential tax revenue from expanded gambling with risks related to addiction, consumer protection, and financial fraud.

The crackdown signals an escalation in New York’s effort to combat what officials view as a shadow market of unregulated digital gambling. By publicly naming the sites and encouraging users to avoid them, the OAG and Gaming Commission hope to curb participation and limit the financial and psychological harm they say is linked to these platforms.

 

These sweepstakes casinos put individuals at risk of fraud and financial exploitation.

Conclusion

As online gambling options expand nationwide, New York’s action underscores the legal gray areas still present in the digital gaming space. With support from both the legislative and regulatory arms of state government, the recent move aims to safeguard consumers and reinforce the importance of a tightly controlled gambling environment—especially as debates over broader legalization continue.