The New York State Senate will have a chance to vote on the future of sweepstakes casinos in the state, as a bill to ban them has advanced from the Racing, Gaming and Wagering Committee. The bill, authored by Senator Joseph Addabbo Jr., would also ban any collaboration with such sweeps platforms by banks and payment processors.
A brief, five-minute meeting was all it took to push Senate Bill 5935 from committee to the floor of the Senate. Only three of the committee’s seven members were in attendance, including Addabbo himself, as the chair of the committee. During the meeting, he stated:
“This is a growing issue. We have these online sweepstakes casinos that basically look a lot like casino games, but they go unregulated.”
Addabbo’s legislation is clear in its attack on sweepstakes casinos, which it classifies as “Online real money sweepstakes casinos” masquerading as non-cash sweepstakes games. As such, the games are in an unregulated grey area. Addabbo and his supporters want to protect consumers from the confusing nature of such casino apps.
Two Republican senators, James Tedisco (44th State Senate district) and Pamela Helming (54th State Senate district) were present in the NYS Senate Racing, Gaming, and Wagering Committee meeting which approved the advancement of SB 5935. All attendees voted to pass the bill forward, though Sen. Helming chose to record her vote as “aye without recommendation,” citing concerns she has yet to vet. Tedisco said of his vote:
“A lot of kids have a lot of temptations; they don’t need another one.”
Addabbo points out that neighboring states are also grappling with sweepstakes casinos that target consumers.
“Right now, we have a number of states, Connecticut being one of them, that basically made [online sweepstakes casinos] illegal. [The state of Connecticut] kicked out one of their operators, and that operator was actually targeting individuals who self-excluded [from regulated casino activity].”
In addition to Connecticut, a few other states have banned sweepstakes casinos, including Maryland and New Jersey.
Ban would call for fines as high as $100,000
The bill that the entire NY State Senate will have a chance to debate calls for penalties for violating a ban on sweepstakes casinos would range from $10,000 to $100,000 per violation. A violator would also potentially lose its gaming license, a provision that clearly targets operators who are both gaming suppliers as well as sweepstakes casino app operators.
The bill language reads:
“These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject. Legislation will provide a powerful deterrent to offshore and domestic illegal online gaming operators from entering the state and/or to withdraw from the state and will provide robust tools to the Gaming Commission and the Attorney’s General Office to enforce the law.”
Sweeps casinos call proposed ban an overreach
Not everyone is thrilled with a possible ban on so-called sweeps casino apps in New York. A spokesperson for the Social and Promotional Games Association (SPGA) has publicly criticized Addabbo’s bill.
“New York lawmakers are dangerously conflating legal promotional sweepstakes with gambling, creating a broad and misguided precedent that could devastate industries far beyond social gaming.”
The organization goes on to make a shaky assertion that sweepstakes are a legitimate marketing method that has a valuable place in the gambling industry.
“From fast-food chains to app developers, companies have long relied on sweepstakes as a lawful marketing tool. By attacking this widely accepted business model, the bill jeopardizes businesses operating within clear legal boundaries.”
