New York’s Anti-Sweepstakes Bill A06745 Clears Third Committee with Unanimous Support

A Swift Legislative Advance

New York’s Assembly Bill A06745, sponsored by Assemblywoman Carrie Woerner, won unanimous approval from the Assembly’s Ways and Means Committee, its third committee hurdle. The bill, which seeks to outlaw online sweepstakes casinos, previously cleared the Racing, Wagering, and Gaming Committee on April 30 with an 11-0 vote and the Codes Committee on May 28 with a 21-0 vote.

“As Chair of the Assembly’s Standing Committee on Racing and Wagering, I’m deeply concerned about the prevalence of sweepstakes games,” Woerner said, noting their potential to hook teenagers on gambling.

A06745 targets online sweepstakes games that use dual-currency systems, where players buy virtual coins to play casino-style games like slots, poker, or bingo, then redeem another currency for cash or prizes. The bill amends New York’s racing and wagering law to ban these platforms, which Woerner calls an “on-ramp to problem gambling” for youth. It also prohibits banks, payment processors, and media affiliates from supporting such operations, with fines ranging from $10000 to $100000 per violation. The New York State Gaming Commission and Attorney General would enforce penalties, including license revocations.

Senate Companion Bill Gains Traction

A parallel Senate bill, S05935, sponsored by Senator Joseph Addabbo, mirrors A06745’s language and awaits a full Senate vote after clearing the Senate Racing, Gaming, and Wagering Committee. Addabbo, a longtime advocate for regulated gaming, warned that sweepstakes casinos “create dangerous pathways for gambling addiction, especially among minors.”

A recent amendment to S05935 lets the Gaming Commission define “dual-currency systems,” aiming for flexibility as platforms evolve. The Social and Promotional Games Association (SPGA) slammed this change as a “political patch” that “needlessly threatens” New York’s economy. With the legislative session ending June 12, both bills face a tight deadline for passage.

Attorney General’s Parallel Push

New York’s fight against sweepstakes casinos intensified on June 6, when Attorney General Letitia James sent cease-and-desist letters to 26 operators, including Chumba Casino’s parent company, Virtual Gaming Worlds (VGW). James called these platforms “illegal, dangerous, and capable of ruining people’s finances.”

All 26 operators agreed to halt sweepstakes coin sales in New York, with VGW planning a full exit by summer. “I thank the Gaming Commission and Senator Addabbo for partnering with my office,” James said. Gaming Commission Chairman Brian O’Dwyer labeled the games “unscrupulous, unsecure, and unlawful,” urging players to stick with licensed operators.

The SPGA, representing sweepstakes operators, decried James’ enforcement as a “mischaracterization” of their platforms, insisting they’re legal under federal law and offer robust consumer protections. “This approach stifles innovation and limits consumer choice,” an SPGA spokesperson said, lamenting ignored outreach to lawmakers.

The Social Gaming Leadership Alliance (SGLA), led by former Congressman Jeff Duncan, disagreed with the “illegal” label but expressed willingness to craft a “comprehensive regulatory structure” with legislators. Critics argue A06745’s broad scope could harm legitimate businesses, like fast-food promotions, though Woerner clarified the bill targets only cash-prize games mimicking gambling.