There is a non-existent casino that deals in NFTs outside of Russia and cheats people in the United States, according to regulators in a few states.
CNBC mentioned That regulators in Texas, Wisconsin, Kentucky, New Jersey and Alabama jointly filed emergency cease-fire orders Wednesday against a start-up 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 it had nothing to do with the Russian Metaverse Casino.
The virtual casino, which is allegedly planned to be built on the metaverse platform The Sandbox, does not exist and likely never will, according to the states.
. said press release of the alleged scam in March. “The company plans to build gaming facilities in partnership with one of the oldest representatives of the industry in Las Vegas. Furthermore, a recreation center and sports arena with a hockey team, golf courses and horseracing in the Sandbox metaverse are also in the works.”
The 22-page emergency cease and desist order requires Metaverse Casino to immediately stop selling non-fungible tokens (NFTs), which states say deceive Americans.
The Metaverse Casino started the scam earlier this year, according to the report.
The organizers said the virtual casino said,NFT Casino holders will receive 50% of the profits generated by the casino as passive income. It also attracted recipients by offering a chance to win extravagant prizes like Teslas and iPhone in random lotteries.”
The press release from the casino stated that “Every Flamingo Club NFT The holder will receive a share of the profits generated in the Flamingo Games Club.”
Flamingo Casino Club is also allegedly said to have ties to Yahoo and MarketWatch.
It is not yet clear how much Americans have invested in Flamingo Casino Club.