- Sands Vegas Casino Club was issued cease-and-desist orders by two states.
- According to reports, Sands Vegas Casino Club sold NFTs to fund a Metaverse casino.
- The holders of NFTs can earn revenue shares from the metaverse casinos.
Metaverses and NFTs appear to be gaining popularity. As a result, mainstream players have adopted Web3 and are exploring ways to incorporate brands into NFTs and the Metaverse to attract consumers.
Over the years, online gambling has gained significant traction. Through the development of NFTs and the Metaverse, online gambling platforms now have a whole new way to explore and enhance the gaming experience.
U.S. regulators issued cease-and-desist orders to Sands Vegas Casino Club on Wednesday. It has been stated that the online casino has sold NFTs to fund operations. In Alabama and Texas, the NFTs were illegal securities offerings.
In a press release from the Texas State Securities Board, the virtual casino offered,
“11,111 Gambler NFTs in connection with their development metaverse casinos in popular metaverses such as the Sandbox, Decentraland, Infinity Void, and NFT Worlds.”
“Gamblers, acting through avatars, can enter the metaverse casino and play poker and other games using cryptocurrencies. Purchasers of the Gambler NFTs profit from these operations. Not only do they become owners of the metaverse casinos, but they also purportedly share in half the profits generated.”
In addition, Sand Vegas promised buyers of its Gambler and Golden Gambler NFTs a share of virtual casino profit, forecasting profits of as much as $81,000 a year, regulators told Reuters, which could not reach Sand Vegas or its founders for comment.
A press release was also issued by the State of Alabama Securities Commission regarding their cease-and-desist order.
Sand Vegas Casino acquired 27 plots in Sandbox (SAND) in January 2022, according to its roadmap. In addition, the virtual casino aims to meet all legal and regulatory requirements between March and August 2022.
As of writing, Sand Vegas Casino Club was up and running, with NFTs available on OpenSea.
It is predicted that casinos will continue to make big money in the Metaverse as more mainstream casinos begin to dip their toes into the virtual realm.
According to Casino.org, Decentraland’s (MANA) ICE Poker reported revenue of $7.5 in three months. Decentraland is reportedly investing in Decentral Games, a DAO that develops the ICE Poker casino for the Metaverse. ICE Poker launched in October 2021.
Decentral Games founder Miles Anthony stated,
“The casino has around 6,000 users every single day and can have more than 1,000 users playing poker at any given time.