The New York Senate Racing, Gaming, and Wagering Committee unanimously passed S5935 on Tuesday, moving the legislation to the Senate floor, according to Howard Glaser, global head of government affairs at Light & Wonder.
New York Bill Would Ban Online Sweepstakes Games
Although the anti-gaming bill hasn’t been scheduled to be heard yet, the Empire State is now a step closer in banning online sweepstakes casinos and social casinos.
Introduced by committee chairman and Sen. Joseph Addabbo, the New York bill “prohibits online sweepstakes games and revenue from illegal markets,” and lists penalties and enforcement provisions.
Carrie Woerner, chair of the assembly’s Racing, Gaming, and Wagering committee, has introduced a companion bill in the other chamber, but it has not moved out of that committee.
Addabbo’s bill targets “dual-currency” payment systems that have raised the red flags of lawmakers in several states. Sweepstakes casinos offer similar games as regulated and offshore gaming operators but are funded with coins.
S5935 Calls For Fines Of $10,000 To $100,000
Players can access some coins for free, but they can also acquire more via cash payments. While the sweepstakes casino operators offer free-to-play games, paying for more coins with real cash still constitutes a form of gambling.
In addition, winnings from online slots, table games, and sports bets can be converted to cash and prizes. S5935 calls for fines of $10,000 to $100,000 per violation along with the loss of a gaming license.
“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,” the bill states.
“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.”
Maryland will soon prohibit sweepstakes gaming as well. The Old Line State’s Senate passed a bill last week that was sent back to the House of Representatives, where it will be heard on Thursday.