Regulators in four states simultaneously filed emergency cease and desist orders Thursday against online casino Slotie.

Law enforcement officials in the states allege that Slotie owners were soliciting online investors to participate in an illegal gambling operation in the metaverse, a digital world where participants can interact with each other, buy products, and gamble. State securities boards in Texas, Kentucky, New Jersey and Alabama accused Slotie of defrauding investors and ordered him to immediately stop selling his non-fungible tokens, or NFTs, to retail investors.

NFTs are blockchain-based digital assets that designate ownership of virtual art, music, or, in this case,…