- New York lawmakers have passed legislation to ban sweepstakes sites
- Lawmakers say such online platforms violate the state’s gaming laws
- New York joins a slew of states cracking down on sweeps
New York lawmakers wasted no time in following State Attorney General Letitia James’ lead in deciding that online sweepstakes games have no place in the Empire State.
On Tuesday, just four session days after the New York Senate approved Senate Bill 5935 with a 57-2 vote, the State Assembly passed the bill unanimously 141-0. The statute seeks to amend the state’s racing, parimutuel wagering, and breeding law to “prohibit online sweepstakes games and revenue from illegal markets.”
The legislation would give the New York State Gaming Commission (NYSGC) and the Attorney General the power to impose penalties against violators. Those fines would range from $10K to $100K depending on the severity of the infraction. A violating entity’s gaming license could also be at stake.
The bill comes just weeks after James sent cease and desist letters to 26 companies alleged to have violated New York’s gaming laws. James said the illegal sweeps platforms unlawfully allowed New Yorkers to play traditional casino games online for money.
Sweeps Controversy
Sweeps operators claim they operate social casino games, and purchases are never required to win. The innovative industry likens its online platforms to how major retailers like Walmart and CVS offer chances to win coupons via spinning wheels or similar promotions.
Critics contest those claims on allegations that many sweeps use “dual-currency” systems where secondary virtual coins can be redeemed for cash.
Online real money ‘sweepstakes casinos’ have recently become widely available in New York. These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject,” said New York State Sen. Joseph Addabbo (D-Queens), the lead author of SB5935.
“These products and operations are untaxed and unregulated. They present unfair competition to the state’s legal, highly regulated and economically important casinos,” Addabbo added.
New York is among many states that have recently either banned sweeps or told such operators to stop doing business within their borders. Similar actions have occurred in Mississippi, Louisiana, Connecticut, Maine, Wyoming, Maryland, Arkansas, New Jersey, and Pennsylvania.
Sweeps Advocacy Group Asks for Veto
SB5935 awaits Gov. Kathy Hochul’s (D) signature. The sweeps industry, led by the Social Gaming Leadership Alliance (SGLA), says New York lawmakers rushed through “flawed legislation” and is therefore asking the governor to veto the bill.
By advancing legislation that was drafted based on a fundamental misunderstanding of our industry and aggressively promoted by stakeholders with a competitive interest in shutting down these platforms, New York residents could lose access to popular, free-to-play online games enjoyed by millions. Of particular concern, the discretionary powers handed to the Gaming Commission under this bill could restrict the use of a popular marketing tool, hurting businesses and the New York economy in ways lawmakers did not intend,” said Jeff Duncan, a former Republican congressman for South Carolina who joined the SGLA as its executive director last month.
SGLA members include sweeps leaders VGW, Chumba Casino, Global Poker, Luckyland Slots, McLuck, and Hello Millions.
The post Online Sweepstakes Ban Passes in a New York Minute, Bill Awaits Gov. Hochul’s Signature appeared first on Casino.org.
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