From 55042ebb8960dd5251f8cd900c4e123f6eb575ea Mon Sep 17 00:00:00 2001 From: kaleymetzler3 Date: Thu, 16 Jan 2025 08:25:00 +0800 Subject: [PATCH] Update 'Sweepstakes Casino Controversy - And Celebrities' All-important Role' --- ...--And-Celebrities%27-All-important-Role.md | 64 +++++++++++++++++++ 1 file changed, 64 insertions(+) create mode 100644 Sweepstakes-Casino-Controversy---And-Celebrities%27-All-important-Role.md 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..4c58db3 --- /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 prohibited [sports betting](https://forum.subchems.com/read-blog/3816_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html).
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No, they weren't personally in participation, however the world-famous celebs were notably included in a slide discussion on social and sweepstakes gambling establishments - the controversial websites providing both complimentary casino-style video games and rewarding prizes, such as money, present cards or cryptocurrency. In one ad, the fist-pumping Seacrest is seen plugging Chumba Casino, where anyone can 'play for totally free,' while a crop-topped Hilton holds a chip for sweepstakes operator, Wow Vegas, in the other.
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The websites are simply 2 cogs in the multibillion-dollar market that now finds itself besieged by claims. In the eyes of lots of gaming corporations, not to mention claim plaintiffs and state regulators, sweepstakes casinos act as standard casinos, just without the oversight, consumer protections and tax laws. So not just can they prevent the high 24-percent federal gambling levy, but [sweepstakes operators](https://cozwo.com/read-blog/8527_the-history-of-the-nfl-and-how-to-bank-on-it.html) [aren't subject](https://sosmed.almarifah.id/read-blog/1300_sports-minister-tracey-crouch-resigns-over-039-hold-up-039-to-betting-crackdown.html) to regulative obstacles like anti-money laundering and responsible-gaming securities.
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One operator, Australia-based Virtual Gaming Worlds (VGW), reported $4 billion in profits in 2015 alone. Now the company faces accusations of unlawful gambling in a New York lawsuit that claims VGW uses celeb endorsers to 'create a veneer of authenticity' around its product. (See VGW's statement below)
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'I'm not sure" if you do not trust us, you can rely on Paris Hilton" is a winning message for business running multibillion-dollar unlawful operations out of [locations](https://wiki.insidertoday.org/index.php/User:DennisY38212) like Malta, Isle of Man, or US mail drops,' Friday's speaker, Howard Glaser of gaming corporation Light & Wonder, told DailyMail.com.
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Sweepstakes endorsers consist of a variety of stars from gambling enthusiasts Drake and DJ Khaled to swimmer Michael Phelps, along with NBA stars Karl-Anthony Towns and Paul George - none of whom use any differences between standard gambling and sweepstakes play.
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Paris Hilton is seen plugging Wow Vegas, one of lots of sweepstakes casinos discovered online
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Ryan Seacrest urges fans to play at Chumba Casino, where numerous - but not all - games are totally free
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Drake has a deal with social sweeps gambling establishment, Stake, that he routinely touts on social media
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Learn more
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Donald Trump 'set to name NBA group owner as US ambassador to Italy'
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Instead, ads generally focus around the social element of the gambling establishments, while leaving out the potential for real [sports betting](https://www.athleticzoneforum.com/read-blog/760_warner-bros-discovery-sets-stage-for-potential-cable-deal-by.html) losses.
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Others lure customers with pledges of rewards. One such operator, Stake, ran a social networks advertisement flaunting Drake's automobiles, planes and mansions before pivoting to video of the rapper playing online casino-style games.
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'Daddy, why do we have so much cash?' check out the first caption on the screen.
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Another caption explained: 'Because I never ever offered up.'
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The disparity between [sports betting](https://galgbtqhistoryproject.org/wiki/index.php/User:ElkeRome428874) sites and social or sweepstakes gambling establishments is a bit complicated, but operators of the latter insist they're not included with the previous.
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A representative for an industry trade group, the Social and Promotional Gaming Association (SPGA), explained its members are not in direct competition with online gambling establishments and sportsbooks. Furthermore, according to SPGA data, the majority of the gamers on social-sweepstakes gambling establishments are [sports betting](https://followmylive.com/read-blog/21928_online-betting-firms-gamble-on-soccer-mad-nigeria.html) complimentary.
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'Most social sweeps customers never ever buy,' the SPGA spokesperson informed DailyMail.com. 'The minority of customers who make purchases do so in quantities far smaller sized than the normal deposit or bet size at real-money online [sports betting](http://www.vokipedia.de/index.php?title=Benutzer:MarcyToler6) sites.'
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Social casinos offer consumers a chance to play casino-style video games with buddies. Players have the choice to buy worthless currency often described as 'gold coins,' which can not be exchanged for genuine money, but can be used to unlock numerous [features](https://meta.mactan.com.br/read-blog/24941_how-to-withdraw-from-bet9ja-8-step-guide-to-cash-in-your-wins.html) within the video games.
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But within the world of social gambling establishments exists sweepstakes video gaming, enabling customers to acquire other currency called 'sweeps coins' that can be exchanged for money or other prizes.
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And therein lies the capacity for monetary 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 previous year after continuing to purchase more coins in pursuit of cash and other things of worth.
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The Philadelphia 76ers' Paul George is seen promoting a Worldwide Poker occasion
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Social [sweeps casino](https://noaisocial.pro/read-blog/2354_how-to-attract-users-to-my-fantasy-sports-platform.html) Stake ran an advertisement displaying Drake's vehicles, planes and mansions
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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 prohibited in all but 7 states, which has actually assisted to fuel the popularity of sweepstakes gambling establishments.
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Anyone over the age of 18 can access the sweepstakes sites, which don't need normally need recognition. However, websites like Chumba will request for IDs from players attempting to withdraw any funds.
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Many sites, like the crypto-compatible Stake, allow customers to send mail-in ask for complimentary sweeps coins, supplied the gamers follow painfully specific instructions. What's more, gamers are often rewarded with sweeps coins just for signing up, thus providing them a reason to try their hands at any variety of gambling establishment games for a possibility to win - or lose - real cash.
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So why are sweepstakes sites permitted to run in 48 states, while online casinos are banned in all however 7?
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According to the stakeholders, their item is the free casino-style video gaming, and the real-stakes competition is merely a method of promoting their bread and butter.
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'Social sweepstakes video games are merely a form of online home entertainment,' an SPGA spokesperson told .com by email. 'No purchase is needed to play at social casinos with sweepstakes prizes. Consumers never need to spend for an opportunity to win prizes. That absence of a [purchase requirement](https://ozoms.com/read-blog/11093_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html) - or" factor to consider" - is a crucial difference between social sweeps and traditional online gaming sites like casinos.'
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Think about the method that McDonald's utilizes its annual Monopoly video game to [promote](http://bedfordfalls.live/read-blog/112814_how-to-play-bet9ja-online.html) its food: [Customers aren't](https://www.miptrucking.net/read-blog/1277_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html) paying to bet, however rather they're purchasing hamburgers and fries that provide them the opportunity to win rewarding rewards, such as a $1 million jackpot.
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And without a purchase requirement, or 'factor to consider', the game itself does not satisfy the meaning of gambling 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 hamburgers to publication memberships to coffee and home improvement stores,' the SPGA representative told DailyMail.com. 'Sweepstakes promos are routinely utilized by a who's who of family names like AT&T, Chase, Home Depot, Marriott, Starbucks, and Wal-Mart.'
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But to many gambling industry experts, that argument does not cut it.
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For starters, gaming lawyer Daniel Wallach points out, McDonald's Monopoly video game does not run forever. Rather, it has a distinct start and end, thus recommending the sweepstakes is not the fast-food giant's main product. Instead, the sweepstakes is being utilized to promote real items like french fries, shakes, and the Filet-O-Fish.
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'They do not last forever and they're generally not tied to casino-style video games of opportunity,' Wallach told DailyMail.com. 'They're simply cash giveaways.
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'The sweepstakes [casinos] have none of the characteristics typically related to McDonald's-design sweepstakes promotions,' Wallach continued. 'Besides running in all time, the sweepstakes casinos use" casino-like" payments, normally 80 percent or more of revenues, whereas the typical payout portion for a short-lived advertising sweepstakes is a minor share of the revenue made by the company [normally less than one percent]'
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Wallach fasts to liken the online social sweeps gambling establishments to the [internet coffee](https://olps.co.za/wiki/User:LesMoreira4) shops that emerged in Florida, providing customers the opportunity to play casino-style video games for genuine prizes. A lot of those brick-and-mortar facilities have actually since been shuttered over accusations of prohibited gaming.
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DJ Khaled is amongst several star spokespeople for VGW's Global Poker brand name
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Now, Wallach argues, [social sweeps](https://projectblueberryserver.com/index.php/User:AugustinaSchlink) casinos need to face comparable examination.
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'These differences are not arbitrary,' Wallach said of social sweeps casinos. 'They have consistently been mentioned by courts and state lawyer generals as key factors in figuring out that a sweepstakes promo was in fact a guise for illegal [sports betting](https://flowsocial.xyz/read-blog/589_sports-minister-tracey-crouch-resigns-over-039-delay-039-to-betting-crackdown.html).'
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One of the casino industry's leading trade organizations, the American Gaming Association, is now pressing legislators to investigate sweepstakes operators and, in some cases, enact brand-new legislation on the concern.
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'Consumers are being deprived of protections and states are giving up considerable tax and profits opportunities as this gaming replaces that conducted through controlled channels,' read a well-circulated AGA memo.
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And after that there are the complainants who have taken legal action against social gambling establishments in more than a dozen states.
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Sweepstakes gambling establishment operators paid a combined $14.2 million in 4 different cases in Kentucky without confessing any wrongdoing, according to the Washington Post. Meanwhile VGW consented to pay $11.75 million in one class-action lawsuit, saying the settlement was made to prevent 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 lawsuit, which is mostly comparable to its predecessors, New York state locals Lamar Prater and Rebecca Pratt both declare to have lost well over $1,000 to VGW, which is described in the filing as an 'unlawful gaming business. '
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Apple and Google have also been called as accuseds in lawsuits for hosting the sweepstakes websites. But unlike VGW, neither tech company reacted to DailyMail.com's demand for comment.
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'We typically don't comment on matters before the courts,' a VGW representative told DailyMail.com through e-mail. 'However, we keep in mind that this claim has actually only just been filed with the court and VGW has actually not been officially served.
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'We have full confidence in our compliance with all laws and regulations where we operate, and stay positive about the future,' the spokesperson continued. 'We continue to provide our free-to-play video games across most of North America, as we have for more than a years, producing not only terrific games, user experiences and home entertainment, but likewise ensuring this is done safely, properly and at the highest level of standards.
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'More broadly, we 'd reiterate that class actions and other litigations and arbitrations are relatively common throughout the online social video games market (and the US more broadly), and our basic practice is that we intend to vigorously safeguard any claim which might be brought versus us.'
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The issues between traditional online [sports betting](https://napvibe.com/read-blog/3119_uk-betting-firms-gamble-on-us-after-sports-wager-ruling.html) and sweepstakes gambling establishments might show bothersome for some celebrity endorsers.
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Towns, a star center with the Knicks, and the 76ers' George both endorse VGW's Global Poker brand while the NBA is partnered with standard video gaming titans like FanDuel and [DraftKings](https://nubiantalk.site/read-blog/12415_best-u-s-sports-betting-sites-amp-sportsbooks-for-2024.html).
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'It's ironic that expert athletes are hawking prohibited [sports betting](https://marketchat.in/read-blog/2622_things-you-need-to-know-about-rafting-adventures.html) wagering 'sweeps' sites while at the same time the leagues wish to project a strong stance versus unlawful [sports betting](https://globalunitedspirits.com/read-blog/3641_missouri-sports-betting-ballot-measure-approved-by-voters.html) - specifically when trying to tamp down the periodic gambling scandal,' Glaser informed DailyMail.com.
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It was just 8 months ago that Toronto Raptors forward Jontay Porter got a lifetime ban from the NBA over accusations he conspired with bettors. However, to be clear, Porter's scandal is unassociated to anything including social or sweepstakes casinos.
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Together with VGW, Apple and Google are being sued for hosting presumably prohibited gambling websites
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Regardless, Glaser sees sweepstakes casinos as a significant concern for leagues such as the NBA.
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'I 'd expect that a league crackdown on professional athletes endorsing sweepstakes websites is a matter of when, not if,' Glaser included.
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Neither an NBA spokesperson nor the players' representatives reacted to DailyMail.com's requests for remark. For that matter, spokespeople for Drake, DJ Khaled, Hilton, Seacrest and Phelps likewise disregarded to react to DailyMail.com emails.
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Asked if their celeb endorsers have an obligation to describe to clients the distinctions and resemblances between iGaming and sweepstakes gambling establishments, VGW insisted there is absolutely nothing more that needs to be done.
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'We have full self-confidence in our influencer and ambassadorial collaborations, and our organization practices more broadly,' the representative said. 'Some of our values are" our gamers precede" and" we do what's right", and we put our values at the core of whatever we do.'
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Glaser, an outspoken opponent of sweepstakes sites, sees things in a different way.
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'Celebrities who provide their names to dubious unlawful gambling sites are, at a minimum, putting their reputations at danger as well as courting civil and class actions by consumers who allege damage,' Glaser stated. 'There is also some threat that state [regulators](https://social.engagepure.com/read-blog/789_just-how-much-are-americans-investing-in-sports-betting.html) and state lawyers general rope star endorsers into enforcement efforts for assisting in illegal [sports betting](https://ai.ceo/read-blog/244592_sweepstakes-casino-controversy-and-celebrities-039-all-important-role.html).'
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New YorkNBADrakeParis Hilton
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