New York Senate Committee Unanimously Approves Bill to Ban Sweepstakes Gaming
The New York Senate Racing, Gaming and Wagering Committee unanimously approved a bill to prohibit sweepstakes gaming in the state. The legislation, SB 5935, introduced by Sen. Joseph P. Addabbo Jr. (D-15), targets online sweepstakes games that operate using a dual-currency system.
Green casino gaming table
The bill defines online sweepstakes games as internet-based contests that use dual-currency systems allowing players to exchange currency for prizes or cash equivalents. This includes simulated casino-style gaming such as slot machines, video poker, table games, lottery games, and sports wagering. Games that don't award cash prizes are exempt from the prohibition.
Violations of the proposed law would result in fines ranging from $10,000 to $100,000 for operators or affiliates offering sweepstakes casino games or accepting related revenues in New York.
Sen. James Tedisco (R-44) supported the bill, citing the need to protect young people from gambling temptations. However, the Social and Promotional Games Association (SPGA) opposes the legislation, arguing it mischaracterizes sweepstakes gaming and could harm legitimate businesses.
The bill has moved to the Senate calendar for further discussion and potential vote. If passed, it would effectively ban all sweepstakes gaming operations that offer cash prizes within New York State.