NY Senate Committee Unanimously Backs Bill to Ban Sweepstakes Gaming
The New York Senate Racing, Gaming and Wagering Committee unanimously approved a bill to prohibit sweepstakes gaming across the state. Senate Bill SB 5935, introduced by Sen. Joseph P. Addabbo Jr. (D-15), aims to ban online sweepstakes games and illegal gambling markets.
Green casino gaming table
The bill defines online sweepstakes games as internet-accessible contests using dual-currency systems where players can exchange currency for prizes or cash equivalents. This includes casino-style games like slots, poker, table games, lottery games, and sports wagering. Games without cash prizes are exempt from the prohibition.
Key provisions of the bill include:
- Fines between $10,000 and $100,000 for operators or affiliates offering sweepstakes games
- Penalties for accepting revenue from sweepstakes casino companies
- Protection for at-risk populations, particularly youth
- Regulation of dual-currency gaming systems
The Social and Promotional Games Association (SPGA) opposes the legislation, arguing it mischaracterizes sweepstakes gaming and could harm legitimate businesses. They warn the bill could negatively impact industries beyond social gaming and urge lawmakers to reject it.
The bill has now moved to the Senate floor for further discussion and potential vote. Sen. Addabbo emphasized the importance of the legislation during Problem Gaming Awareness Month, stating it targets "illegal, unregulated gambling sites in New York State."