New York’s A6745 to Ban Sweepstakes Casinos Clears First Committee

Kicking Off a Crackdown

Introduced in March, the bill got some tweaks before clearing this hurdle and is now headed to the Standing Committee on Codes for its next review.

A6745 wants to slam the brakes on online sweepstakes games, targeting platforms that use a dual-currency system where players swap virtual coins for cash prizes or equivalents.

The bill tweaks New York’s racing, pari-mutuel wagering, and breeding laws to ban sweepstakes games mimicking casino offerings like slots, video poker, or table games, as well as lottery-style games like keno, bingo, or instant wins, and even sports betting.

It’s one of two New York bills, alongside Senate Bill SB 5935, gunning to wipe out these unregulated platforms.

Who’s in the Crosshairs?

A6745 casts a wide net, covering licensed gaming entities, payment processors, geolocation providers, gaming industry workers, investors, and board members.

Anyone tied to these sweepstakes games could face hefty fines from $10,000 to $100,000 per violation, plus the risk of losing their gaming license.

The New York State Gaming Commission, state police, and Attorney General get beefed-up powers to investigate, issue cease-and-desist orders, and shut down non-compliant platforms or players.

Fines collected from violators will funnel into the Commercial Gaming Revenue Fund, boosting education programs and problem gambling treatment.

Why Ban Sweepstakes?

Sweepstakes casinos, with their dual-currency tricks, operate in a gray area, offering casino-like thrills without the licenses required for legal gambling in New York. A6745 seeks to close this loophole, ensuring only regulated platforms can offer such games

. The bill’s backers see these sites as a risk, potentially luring players without proper age checks or responsible gaming measures. New York’s already got a tight grip on gambling, with regulated online sports betting, tribal casinos, and lotteries, and A6745 fits that mold by keeping things above board.

The Social and Promotional Games Association has pushed back, arguing the bill mislabels sweepstakes and could hurt legit businesses using them for marketing, like loyalty programs.

A6745 faces a long haul to become law. After the Codes Committee, it needs a full Assembly vote, then heads to the Senate, likely landing in the Senate Racing, Gaming and Wagering Committee, which has already tackled SB 5935. If it passes the Senate, it goes to Governor Kathy Hochul, who has 10 days during session or 30 days off-session to sign, veto, or let it become law without action.