Online sweepstakes casinos just got the boot in New York. Attorney General Letitia James has ordered 26 of them to stop running cash-out games. These sites were offering slots and sports betting using virtual coins – illegal under state law covering illegal online sweepstakes casinos.

• The state’s gaming watchdogs found that 26 online casinos were letting players wager with virtual coins. These coins, once bought, could be turned into cash or gift cards. That kind of setup crosses the legal line in New York.

• Even if these sites look like games, the law sees them as gambling. If you’re risking money—real or virtual—on a game of chance with a payout, it counts. And because they’re not licensed, these casinos don’t follow state rules meant to protect players.

• Every operator on the list got a cease and desist letter from the Attorney General. After that, all 26 agreed to stop selling their sweepstakes coins to players in New York. That move cuts off their ability to operate in the state.

• Some of the shut-down sites include Chumba, Global Poker, Fliff, McLuck, and Fortune Coins. Players could previously bet on slots, blackjack, or even make sports picks, all with virtual coins tied to real-world value.

• “Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” said Letitia James in a statement. She said her office will keep acting to protect New Yorkers from unregulated platforms.

• State Senator Joseph Addabbo backed the decision, warning that some of these games are easy access points for kids. He said identity theft and fraud risks are also high with unregulated sites. The lack of age controls only adds to the problem.

• The way sweepstakes coins are sold is a big issue. Sites bundle them with free-play currency or offer them as part of promotions. But once those coins can be cashed out, it becomes a gambling product under the law.

• Without regulation, players don’t know if these games are fair. There’s no guarantee wins will be paid, or that odds aren’t manipulated. That’s why oversight is required – and why these platforms can’t operate in New York.