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 BioAn amendment to a New York Senate bill seeking to ban dual-currency sweepstakes is sparking concern from the Social and Promotional Games Association (SPGA), an advocacy group for sweepstakes gaming.
The group claimed in a statement last week that the amendment of SB 5935 “needlessly threatens” the state’s economy and is nothing more than a “political patch meant to quiet critics without solving the underlying problem.”
Proposed by Sen. Joseph Addabbo, the bill would prohibit 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 equivalent.”
New Powers for New York Gaming Commission Raise SPGA Fears
Upon the bill’s introduction in March, the SPGA contended that broadly banning sweepstakes games could threaten promotional programs run by major brands such as Marriott, McDonald’s, and Starbucks. The amendment gives the New York State Gaming Commission (NYSGC) the authority to decide what constitutes a “dual-currency system” under the law.
Entities found violating the bill face fines ranging from $10,000 to $100,000 and loss of licensing.
Sweepstakes gaming allows users to play casino-style games without wagering real money. Instead, they use virtual currencies like coins or tokens that can be exchanged for prizes or additional credits.
Because they do not take real-money wagers, these platforms are not classified as traditional gaming sites and have drawn scrutiny from regulators.
The SPGA argues that the amendment is a “clear acknowledgement that this anti-business bill needlessly threatens New York’s economy” and the result of “bad legislation.”
Its companion bill, Assembly Bill 6745, unanimously passed through New York’s Assembly Racing and Wagering Committee last week during a public hearing. Proposed by Committee Chair Carrie Woerner, it defines online sweepstakes games as any 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.”
National Spotlight on Sweepstakes Regulation
Sweepstakes gaming is under the watch of regulators in several states. Connecticut and Louisiana are seeking similar bans, while a proposal in Maryland failed to advance before the end of the legislative session last month.
The Louisiana measure would target operators and promoters of casino-style games (slots, video poker, blackjack, roulette), lottery games (keno and poker), sports betting, geolocation providers, and gaming manufacturers.
The SPGA warned Louisiana lawmakers sternly, saying they should “take note before making the same mistake” as their companions in New York.
“This was already bad legislation,” the SPGA said. “Lawmakers have taken a mess and made it into a catastrophe.”
