Doug Bonjour is a veteran sportswriter with more than a decade of experience, including in the realm of sports betting. He’s written for the New York Times, Associated Press, CBS Sports and Hearst Connecticut Media...
Read Full BioNew York State lawmakers are advancing a bill that would ban online sweepstakes gaming.
Assembly Bill 6745 was unanimously approved last week by the state’s Assembly Racing and Wagering Committee during a public hearing.
The measure proposed by Committee Chair Carrie Woerner defines online sweepstakes games as any online contest or promotion that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalents.”
This mirrors Senate Bill 5935, which was amended after reaching the Senate floor in March. Lawmakers have until 12 June to progress with the measures before the state legislative session adjourns.
Online Sweepstakes Platforms Typically Operate in a Legal Gray Area
Online sweepstakes gaming allows users to play casino games like slots or poker without wagering real money. Instead, these platforms enable them to use virtual currencies, usually coins or tokens. Users can then exchange them for prizes or purchase more credits.
Because these platforms do not take real-money wagers, they are not classified as traditional gambling sites. Thus, they tend to operate in a legal gray area and are frowned upon by regulators.
A6745 seeks to ban any online sweepstakes games that simulate casino-style games such as video poker and bingo, as well as draw contests, keno, and instant-win games.
Anyone found violating the bill’s requirements is subject to fines of up to $100,000 and loss of licensing.
All fines collected by the state will be directed to the Commercial Gaming Revenue Fund, which will help support gambling education and addiction programs.
New York and Other States Fight Against Online Sweepstakes Gaming
New York is not the only state seeking to eliminate access to sweepstakes casinos. Connecticut and Louisiana are pushing similar bans, while proposals in Maryland and Mississippi recently fell short.
SB 1235 passed the Senate Judiciary Committee in Connecticut by a 37-0 vote. The bill, which also calls for a ban on lottery courier services, was scheduled to be reviewed by the Office of Legislative Research and the Office of Fiscal Analysis this week.
The bill makes operating an illegal gambling business a Class D felony, which is punishable by up to five years in prison and a $5,000 fine.
SPGA Challenges Proposed Ban
The Social and Professional Gaming Association (SPGA) responded to the recent amendment to SB 5935 in a statement, claiming that New York legislators are “publicly admitting the bill was flawed, and other states like Louisiana should take note before making the same mistake.”
Added the SPGA: “This was already bad legislation. Lawmakers have taken a mess and made it into a catastrophe.”
In recent weeks, New York has seen a few sweepstakes casino operators leave, including High 5 Casino, McLuck, and NoLimit Coins.
Nevertheless, there remains plenty of pushback.
