The New York Senate passed a bill that banned sweepstakes casinos in a overwhelming 57-2 vote on Wednesday. Senate Bill S5935A still needs State Assembly approval and Gov. Kathy Hochul’s signature to become law.
The bill author, state Sen. Joseph P. Addabbo Jr., also introduced Senate Bill 2614 this session to legalize online gambling – repeating unsuccessful efforts he’s made each of the last three years.
The bill targeting sweepstakes casinos, coming on the heels of crackdowns by New York Attorney General Leticia James against that form of gaming, is intended to do the following:
“To prohibit certain persons from operating, conducting, or promoting certain online sweepstakes games or supporting the operation, conduct, or promotion of such games. The bill also grants authority to the New York State Gaming Commission and the Attorney General to enforce penalties against violators.”
What’s next
With the State Senate due to adjourn on Friday and the State Assembly doing the same next Tuesday, the clock could run out on a sweepstakes casino ban despite the appetite for one displayed via the landslide vote.
Prospects are similarly dicey for the online casino bill, which also includes provisions for an online lottery and responsible gaming funding and provisions.
Though Gov. Hochul has indicated openness to online casino plans in the past, she also moved against another piece of Sen. Addabbo’s authored legislation last year, vetoing a bill that would have fast-tracked the downstate casino licensing process — an issue Sen. Addabbo believes needs to be resolved before online casinos can be considered in earnest.
New York’s Tri-State Area neighbor, Connecticut, got its Senate Bill 1235 over the line on Wednesday, with Gov. Ned Lamont’s signature making official the ban on online sweepstakes casinos in that state.
Why the state is cracking down
Per a June 6 press release from the AG’s office, New York took action against 26 different online sweepstakes casinos it identified as operating illegally.
Specifically, the state contends the targeted sites are “offering players slots, table games, and sports betting using virtual coins that could be exchanged for cash and prizes. New York law prohibits online platforms from offering gambling that involves risking something of value, including virtual coins that can be redeemed for cash or prize.”
James noted, “online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” as New York State Gaming Commission Chairman, Brian O’Dwyer, added:
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful. I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market.
We encourage those of age who wish to gamble to do so with legal operators.”
The AG’s cease-and-desist letters spelled the end for major sweepstakes operators, including Chumba, DingDingDing, High 5 Casino, and Luckyland, which are no longer allowed to sell sweeps coins in the Empire State.
