The Social and Promotional Games Association (SPGA) has announced its members will adjust their strategy in New York after exchanging “constructive and informed dialogue” with state officials.
SPGA Cited Daily Fantasy Sports As The Perfect Model For Sweepstakes Gaming In New York
Earlier this month, the New York Senate Committee on Racing, Gaming, and Wagering unanimously passed a bill banning sweepstakes gaming in the Empire State.
Senate Bill S5935, introduced by Senator Joseph Addabbo, has now progressed to the Senate floor. The bill calls for violating operators to receive fines as high as $100,000 and license losses.
In a statement released Thursday night, the SPGA underscored daily fantasy sports (DFS) as an ideal model for sweepstakes gaming to follow in New York for the foreseeable future.
An SPGA spokesperson said: “Innovation in digital entertainment often requires a constructive and informed dialogue with lawmakers and policymakers.
“We saw that dynamic with fantasy sports, and we believe the same approach will help shape smart policy around sweepstakes promotions.”
Sweepstakes Games Are Still Legal In The Empire State
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.
The online gaming platforms label the games “promotional sweepstakes” rather than casino gambling.
The SPGA added: “A proposal to ban sweepstakes games would be unnecessary if they were already prohibited under state law. … We know New York officials recognize the need to get this right…
“… Any decisions about social sweepstakes could have broader implications, not only for promotions by companies like Starbucks and Marriott, but also for any mobile game where consumers spend money, from Candy Crush and Coin Master to Clash of Clans and Monopoly Go.
“Unlike online casino products, social sweepstakes games include a no-purchase-necessary option. Most players participate for free, and the games offer a low-pressure, low-risk entertainment experience, one of the reasons they enjoy such broad consumer appeal.
“SPGA continues to advocate for the millions of American adults who enjoy these promotional games, and remains committed to responsible operations, transparency, and open dialogue with regulators.”
Arkansas, Maryland, Mississippi, and New Jersey have also introduced legislation to ban sweepstakes so far this year. Last week, New Jersey assembly bill A5447 gained a second sponsor and a counterpart bill in the Senate.