U.S Virtual Casino Sands Vegas Ordered to Shut Down for NFT Sales

For NFT sales, two US states filed cease-and-desist orders against Sands Vegas Casino Club.

According to reports, Sands Vegas Casino Club sold NFTs to build a Metaverse casino.

NFT holders are eligible to get revenue shares from metaverse casinos.

NFTs and the Metaverse continue to pique people's interest. Mainstream players have embraced Web3 and are hard at work figuring out how to infuse brands into NFTs and the Metaverse in order to attract customers.

Over the years, online gaming has grown in popularity. The Metaverse and the growth of NFTs provide online gaming platforms with a new avenue to explore and elevate the gambling experience to a whole new level.

Texas and Alabama Issue Sands Vegas Cease-and-Desist Orders

US authorities from two states issued cease-and-desist orders against Sands Vegas Casino Club on Wednesday.

The online casino has sold NFTs to support its activities, according to the two states. The NFTs were an unlawful securities offering, according to Alabama and Texas state statutes.

The virtual casino provided "11,111 Gambler NFTs in conjunction with their building metaverse casinos in popular metaverses such as the Sandbox, Decentraland, Infinity Void, and NFT Worlds," according to a press statement from the Texas State Securities Board.

"Gamblers, operating via avatars, may access the metaverse casino and play poker and other games using cryptocurrency," the press announcement continues. These activities benefit purchasers of Gambler NFTs. They not only become proprietors of the metaverse casinos, but they also allegedly get half of the revenues."

A press statement was also issued by the Alabama Securities Commission on the cease-and-desist order.

Sand Vegas Casino purchased 27 plots in Sandbox (SAND) in January 2022, according to the Sand Vegas plan. Between March and August 2022, the virtual casino sought to satisfy all regulatory/legal standards.

The Sand Vegas Casino Club was up and functioning at the time of writing, with NFTs for sale on OpenSea.

Virtual Casino Growth Likely to Draw Greater Regulatory Scrutiny

Casinos are generating a lot of money in the Metaverse, and this trend is expected to increase as more traditional casinos make their way into the virtual reality.

Decentraland's (MANA) ICE Poker recorded $7.5 in revenue in three months, according to Casino.org.

Decentraland is said to have invested in Decentral Games, a decentralized autonomous organization (DAO) tasked with producing the Metaverse casino ICE Poker. In October of 2021, ICE Poker was introduced.