Bill Banning Sweepstakes Casinos In New York Heads To Gov. Hochul
A bill that would ban sweepstakes casinos from New York is one signature away from becoming law.
S 5935 passed the Assembly Tuesday, which was the final step needed in the legislature. The bill is effective immediately, making sweepstakes casinos illegal as soon as Gov. Kathy Hochul signs the bill.
New York is the fifth state to send a bill banning sweeps to its governor. Bills in Connecticut, Montana and Nevada have each been signed by their respective governors while Louisiana Gov. Jeff Landry vetoed a bill that unanimously passed his state’s legislature.
Hochul is likely to sign the bill, as her attorney general’s office issued cease-and-desist letters to more than two dozen sweeps brands.
Details of sweepstakes casino ban
New York’s proposed ban on sweepstakes casinos specifically targets sites that offer a dual-currency system, which can be used to redeem cash prizes. The State Gaming Commission is given authority to determine what constitutes that system.
Games that resemble online casino games like slots, table games and bingo, as well as games that resemble sports betting or lottery tickets, are banned.
The bill does not just target operators. It also prevents payment providers, geolocation suppliers, gaming content suppliers and affiliates from working with sweeps brands in New York.
Anyone found to be in violation of the law is subject to a fine between $10,000 and $100,000.
Cease-and-desists did some heavy lifting
Even if the bill was not signed by Hochul, Atty. Gen. Letitia James and her office sent 26 cease-and-desist letters to sweepstakes casinos earlier this month.
The action drew praise from legislators and regulators in the state.
“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,” New York State Gaming Commission Chairman Bryan O’Dwyer said. “We encourage those of age who wish to gamble to do so with legal operators.”
Trade group wants sweepstakes casinos ban vetoed
The Social and Promotional Games Association called the legislation “a shortsighted bill that threatens to kill investment, stifle innovation, and undermine New York’s position as a national leader for tech and digital entertainment.”
“This bill doesn’t just target sweepstakes, it sends a chilling message to anyone looking to invest in the next generation of gaming innovation,” said an SPGA spokesperson. “Nearly every form of online gaming we know today, including companies like FanDuel, a New York-based success story, began as pre-regulated concepts. This legislation criminalizes that innovation cycle.”
