New York Senator Joseph Addabbo introduced Senate Bill 5935 on Tuesday and referred it to the chamber’s Racing, Gaming, and Wagering Committee, which Addabbo chairs.
SB 5935 Would Ban Sweepstakes Operators In New York
The legislation seeks to prohibit the operation, support, and advertising of sweepstakes casinos in the Empire State. It also gives the state gaming commission and attorney general’s office resources to pursue violators.
“Online real money ‘sweepstakes casinos’ have recently become widely available in New York over the internet on mobile devices and personal computers, including to minors,” Addabbo’s sponsor memo reads.
“These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject. These products and operations are untaxed and unregulated. They present unfair competition to the state’s legal, highly regulated and economically important casinos.”
SB 5935 defines online sweepstakes games as activities that use a “dual-currency system of payment,” which lets a player exchange that currency for prizes and real money.
Although a sweepstakes game would not include those that do not award cash prizes or cash equivalents, the definition also mentions activities that feature “casino-style gaming,” which means slots, table games, and online sports betting.
Residents Would Be Subject To Fines Of $10,000 To $100,000 For Each Violation
If the bill becomes law, any resident offering, providing support services to, or helping to promote such games in New York would be subject to fines of $10,000 to $100,000 for each violation.
Violators could face the loss of their gaming license or eligibility for a gaming license in the state as well.
The state gaming commission, police, and attorney general’s office would be able to enforce the law, and the commission could conduct investigations and issue cease-and-desist letters.
New York State Gaming Commission Chairman Brian O’Dwyer mentioned sweepstakes during a meeting in January, stating he has “serious concerns” operators are violating New York’s gambling laws.
“I have discussed this with our staff. They have made several referrals to law enforcement, and they are assisted in case development,” O’Dwyer said.
“I can assure my fellow commissioners and the public that if … this activity continues and is found to be in violation of New York state’s gaming law, that we will do everything possible to assure that that law is protected and respected.”
In addition, the Social and Promotional Games Association (SPGA) strongly disapproves of Addabbo’s bill. The Association said in a statement that it “unconditionally opposes” the proposed legislation.
“Albany legislators have no business dictating to New Yorkers what games they can play on their phones. This deeply flawed legislation is an affront to personal freedoms, an insult to New York voters, and a colossal waste of government resources.”