The Social and Promotional Games Association (SPGA) has released an official statement in response to New York Senate Bill S5935, unconditionally opposing the measure that would ban social sweepstakes games.
SPGA Opposes New York Senator Joseph Addabbo’s SB S5935
Senator Joseph Addabbo (D-Queens), a prominent supporter of regulated gambling who’s spearheaded the expansion of the Empire State’s legal gaming industry, is also one of the biggest opponents of sweepstakes casinos.
Addabbo, who sponsored the bill and also chairs the Racing, Gaming, and Wagering Committee, argues that social casinos are a form of illegal gambling. The SPGA strongly disagrees.
“We appreciate New York lawmakers’ formal recognition that social sweepstakes are a legal form of entertainment – you don’t need to outlaw something if it is already illegal,” the SPGA said. “But that’s where our appreciation ends. 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. As constructed, the bill could criminalize promotional sweepstakes used by small businesses in New York, risking millions in revenue for local shops and restaurants and threatening thousands of jobs in an already fragile economic climate.
“… The bill could also outlaw promotional sweepstakes run by major Fortune 500 companies such as AT&T and Starbucks. The correct approach to support innovation, consumer choice, and the economy of New York is sensible regulation and taxation of social sweepstakes games that millions of adults enjoy responsibly and safely.
“We stand ready to work with New York policymakers who are willing to develop a more sensible, balanced approach that protects the rights of consumers and not the special interests of a small handful of corporate interests.”
Sweepstakes Casinos Are Still Legal In New York
Social casinos allow players to engage in virtual casino-style games for free, while allowing them to purchase virtual Gold Coins that can later be redeemed for cash prizes.
Gold Coins and Sweep Coins are available for players to purchase, but neither currency holds real-world cash value. These types of games are still legal in the Empire State.
However, Sweeps Coins can be used to win prizes, including cash rewards. The online gaming platforms label the games “promotional sweepstakes” rather than casino gambling.
“The use of money to play a game and win more money is simple gambling and should be safely regulated,” said Addabbo, who believes the distinction between sweepstakes casinos and online casinos is misleading.
Addabbo intends to close this loophole by banning sweepstakes casinos, similar to current laws in Michigan, Idaho, and Washington. The lawmaker is pushing for iGaming to become the safest, most effective alternative for online casino players.