New York’s Senate Bill S5935 Aims to Ban Sweepstakes Casinos Statewide
New York Senator Joseph Addabbo has introduced Senate Bill S5935, a measure to outlaw sweepstakes casinos across the state. Sponsored by the veteran lawmaker, this legislation targets unregulated online platforms that mimic traditional gambling. Now before the Senate Racing, Gaming and Wagering Committee, the bill seeks to stamp out these operations and their revenue streams.
What’s in the Crosshairs
S5935 defines sweepstakes casinos as online or mobile games, contests, or promotions using a dual-currency system, where players trade credits for cash or equivalents, simulating casino staples like slots, video poker, table games, lotteries, and sports betting. Games without cash prizes don’t make the cut.
The bill bans a broad swath of entities from running or promoting these platforms, including operators, licensees, gaming employees, banks, payment processors, geolocation firms, content providers, platform hosts, and media partners.
Violators face stiff penalties: fines from $10,000 to $100,000 per offense, plus possible license revocation. Enforcement powers go to the New York State Gaming Commission, state police, and the Attorney General’s office, who can investigate and issue shutdown orders.
The Driving Force
The bill tackles sweepstakes casinos for sidestepping consumer protection, responsible gaming, and anti-money-laundering laws. These platforms operate outside New York’s regulated gaming framework, posing risks to players and undercutting legal operators that fund state coffers.
Addabbo’s proposal aims to safeguard consumers from potential scams or addiction while ensuring a fair market for licensed gambling entities.
This aligns with a national trend, many states grapple with sweepstakes casinos, though approaches vary. New Jersey leans toward regulation, but New York opts for a hard stop to halt their unchecked growth and economic bypass.
Pushback and Debate
The plan’s not without critics. The Social and Promotional Games Association (SPGA) argues that banning sweepstakes casinos could hit small businesses relying on these promotions for marketing.
They suggest regulation and taxation instead, warning that a total ban limits consumer options and might hurt local economies. SPGA frames it as an overreach, clashing with personal choice.
Supporters counter that the risks outweigh the benefits. They point to the lack of oversight in sweepstakes casinos, prioritizing consumer safety and market equity over niche economic concerns.
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