NY Senate Committee Unanimously Approves Ban on Online Sweepstakes Gaming
The New York Senate Racing, Gaming and Wagering committee has unanimously passed a bill prohibiting sweepstakes gaming across the state. The legislation, SB 5935, introduced by Sen. Joseph P. Addabbo Jr. (D-15), specifically targets online sweepstakes games and their operators.
Green casino gaming table
The bill defines online sweepstakes games as internet-accessible contests using dual-currency systems that simulate casino-style gaming, including slots, poker, table games, lottery games, and sports wagering. Games that don't offer cash prizes or equivalents are exempt from this prohibition.
Key aspects of the legislation:
- Minimum fine of $10,000 for violations
- Maximum penalty of $100,000 for operators or affiliates
- Targets games offering real cash prizes through sweepstakes coins
- Prohibits revenue from illegal markets
During the brief five-minute committee meeting, Sen. James Tedisco (R-44) supported the bill, citing the need to protect young people from gambling temptations.
The Social and Promotional Games Association (SPGA) has opposed the legislation, arguing it mischaracterizes sweepstakes gaming and could harm legitimate businesses. The organization warns the bill could have far-reaching negative implications beyond social gaming.
The bill now moves to the Senate floor for further discussion and potential vote. This legislation aligns with New York's broader efforts to regulate online gaming and protect vulnerable populations from unregulated gambling operations.