State Regulators Say Russian Metaverse Casino Project Is Scamming Americans

State Regulators Say Russian Metaverse Casino Project Is Scamming Americans

A nonexistent metaverse casino dealing in NFTs is based out of Russia and is scamming people in the U.S., according to regulators in a handful of states.

CNBC reported that regulators in Texas, Wisconsin, Kentucky, New Jersey, and Alabama together filed emergency cease-and-desist orders on Wednesday against an upstart metaverse casino project.

The metaverse casino is called Flamingo Casino Club, and it claims on its website that it is affiliated with the Flamingo Casino on the Las Vegas Strip in Nevada. The casino said that it has no relation to the Russian metaverse casino.

The virtual casino, purportedly planned to be built on the metaverse platform The Sandbox, doesn’t actually exist and likely never will, according to the states.

“The green light was given on January 21, 2022,” said a press release from the alleged scam in March. “The company is planning to build gaming facilities in a partnership with one of the oldest industry representatives in Las Vegas. Further, an entertainment center, a sports arena with a hockey team, golf courses, and horse racing in the Sandbox metaverse are also in the works.”

The 22-page emergency cease-and-desist order requires that the metaverse casino immediately halt the sale of its non-fungible tokens (NFTs), which states say is scamming Americans.

The metaverse casino began its scam earlier this year, according to the report.

Regulators said that the virtual casino told “NFT holders they would receive 50% of the profits generated from the casino as passive income. It further enticed patrons by offering a chance to win exorbitant prizes such as Teslas and iPhones in its randomized lotteries.”

The press release from the casino stated that “every Flamingo club NFT holder will get a share of the profits generated in the Flamingo gaming club.”

Flamingo Casino Club also allegedly said it has relationships with Yahoo and MarketWatch.

It’s not yet clear how much Americans have invested into the Flamingo Casino Club.