The Social and Promotional Games Association (SPGA) has issued a response to the New York Assembly Racing and Wagering Committee passing bill A06745, banning online sweepstakes games in the Empire State.
SPGA Opposes Both New York Anti-Sweepstakes Bills
Bill A06745 passed after an amendment was made, clarifying that the New York State Gaming Commission, not the legislation itself, will determine what constitutes a “dual-currency system” under state law.
This is also New York’s second bill banning sweepstakes gaming. New York Senate Bill 5935 unanimously passed the Senate’s Racing, Gaming, and Wagering Commission in March.
“This amendment is a clear acknowledgment that this anti-business bill needlessly threatens New York’s economy,” said a spokesperson for SPGA. “But this amendment doesn’t fix anything. It’s a political patch meant to quiet critics without solving the underlying problem.”
Since the definition of a dual-currency system is up to regulators, the amended bill shifts gaming-related problems to the Gaming Commission. As a result, this will potentially confuse mobile game operators, marketing platforms, and loyalty systems.
Assembly Bill’s Definition Of Online Sweepstakes Game
“Online sweepstakes game” is defined in A06745 as “any game, contest, or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal, or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalents.”
The definition also includes “any chance to win any cash prize, cash award or cash equivalents, and simulates casino-styling gaming, including but not limited to, slot machines, video poker, table games, lottery games, bingo, or sports wagering.”
“Lawmakers wouldn’t be amending the bill if it didn’t need amending,” the SPGA spokesperson continued. “New York legislators are publicly admitting the bill was flawed, and other states like Louisiana should take note before making the same mistake.
“This was already bad legislation. Lawmakers have taken a mess and made it into a catastrophe.”
The SPGA is frustrated that New York lawmakers would rather advance a bill that “threatens innovation and dictates to New Yorkers what games they can and can’t play on their phones” instead of working with stakeholders and legal experts to resolve any issues.
In addition, the SPGA “remains committed to working with any lawmaker interested in getting this right, through modern, balanced regulation that protects consumers without criminalizing digital entertainment.”