Chumba Casino, McLuck Sweepstakes Casinos Must Exit New Jersey Market: Cease and Desist Letters Sent

Submitted by C Costigan on

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C Costigan

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Sweepstakes casinos continue to feel the wrath of state regulators.

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The latest cease and desist orders come by way of New Jersey.

Esteemed gambling attorney Daniel Wallach was among the first to announce the news via his Twitter feed.

"JUST IN: New Jersey gaming official confirms that cease-and-desist letters have been sent to several sweepstakes casino operators, via Chris Sieroty of @VixioRegulatory. 'That’s like playing whack-a-mole, not that we can stop doing it,' said DGE Deputy Director Lou Rogacki."

While Chumba Casino and McLuck were not specifically mentioned, they are among the largest sweepstakes casinos in the US.

Wallach added that "the unnamed companies have 'assisted,' said Rogacki, presumably meaning that they complied with the notice."

As of Tuesday, Chumba claims it is "legit and available in every US state besides: Michigan. Washington."

McLuck explicitly mentions its available in the Garden State.

"You can join in the fun if you're in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Maine, Massachusetts, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Wisconsin, or Wyoming.

"However, please note that McLuck is not available in Montana, Washington, Idaho, Kentucky, Georgia, Nevada, Alabama, Michigan, Louisiana, Delaware, West Virginia, and Maryland due to state regulations."

Wallach also revealed that New York State is et to become the 5th state to propose a ban on sweepstakes casinos.

"SB 5935 would prohibit certain persons from 'operating, conducting, or promoting' online sweepstakes casinos. Ban would extend to payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates, among others. Penalties include a fine of up to $100K “for each violation,” loss of gaming license and permanent ineligibility for a gaming license. Notably, the penalty provisions also apply to individual investors, investment firms and board members (both inside and outside directors).'

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