New York Lawmakers Propose Ban on Sweepstakes Casinos
New York has become the latest state to consider banning online sweepstakes casinos with the introduction of Senate Bill S5935 by Sen. Joseph P. Addabbo Jr. (D-15).
LISTEN TO THIS ARTICLE:The bill would prohibit sweepstakes-style online gaming and impose fines on operators and affiliates of sweepstakes casinos. Should it pass, New York would join several other states, including Florida, Maryland, Connecticut, and Mississippi, in taking legislative action against the industry.
Bill Covers Casino and Lottery Games
Senate Bill S5935 defines online sweepstakes games as any contest, promotion, or game accessible via the internet that uses a dual-currency system and simulates casino-style gaming. This includes slots, table games such as blackjack and poker, and lottery-style games. However, the bill does not apply to games that do not award cash prizes or equivalents.
The legislation also sets out financial penalties for those who offer or profit from sweepstakes casinos, with fines ranging from $10,000 to $100,000. If enacted, the New York State Gaming Commission or the Attorney General’s office will be tasked with enforcing the rules.
Now the bill has been introduced, it will undergo committee review before potentially moving forward in the legislative process.
Part of a Wider National Trend Toward Regulation
New York is not alone in considering a ban. Florida lawmakers have introduced bills in both the House and Senate to classify internet sweepstakes gaming as illegal gambling and make violations a third-degree felony.
Mississippi has already advanced a bill banning sweepstakes casinos through its Senate with overwhelming support. Maryland and Connecticut have also introduced legislation targeting online sweepstakes games and Maryland’s bills aim to give regulators the ability to deny gaming licenses to operators involved in sweepstakes gaming.
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Industry Speaks Out Against Ban
The Social and Promotional Games Association (SPGA) issued a press release opposing New York’s bill. The organization is arguing that it overreaches and threatens legal, widely accepted business practices.
The Social and Promotional Games Association (SPGA) unconditionally opposes New York’s Senate Bill S5935 prohibiting social sweepstakes games. 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 goes on to warn that the bill could have unintended consequences, including harming small businesses that rely on promotional sweepstakes to attract customers. The organization also notes that major corporations such as AT&T and Starbucks could see their sweepstakes campaigns affected, as well as high-profile promotions such as Marriott’s sweepstakes offering Taylor Swift concert tickets.
It described the bill as “deeply flawed legislation” that is “an affront to personal freedoms, an insult to New York voters, and a colossal waste of government resources.”
Several states are moving to ban sweepstakes casinos, reflecting growing legal concerns. For deeper insights into the dynamic regulatory landscape of sweeps casinos, check out our interview with legal expert Stephen Piepgrass, where we discuss the implications of these bans and potential future developments.
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