New York Latest State to Examine Sweepstakes Gaming Ban

• New York lawmakers will contemplate a bill to ban sweepstakes gaming in the state
• Sen. Joseph P. Addabbo Jr. introduced the bill
• The legislation sets potential fines for offering sweepstakes gaming from $10,000 to $100,000

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New York lawmakers are going to take a deep dive in the world of sweepstakes gaming and decide if a ban on the games is necessary.

Sen. Joseph P. Addabbo Jr. (D-15) today introduced SB 5935, the latest bill to take aim at online sweepstakes games and prohibit them in a state.

The bill officially prohibits online sweepstakes games and revenue from illegal markets, plus it lays out potential fines for operators or affiliates who offer or accept revenue from the prohibited games.

Latest State to Consider Ban

Addabbo Jr.’s bill provides the following definition of an online sweepstakes game:

“Any game, contest, or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal, or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or any chance to win any price, award, cash or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games including but not limited to blackjack, roulette, craps, and poker, lottery games including but not limited to draw games, instant win games, keno, and bingo, and sports wagering.”

Sweepstakes games will not include a game which does not award cash prizes or cash equivalents.

The “dual-currency” system is the key part of the definition, as sweepstakes casinos games allow users to play for free or purchase “sweepstakes coins” to play their games and exchange them for real cash prizes.

The bill sets fines of a minimum of $10,000 or a maximum of $100,000 for an operator or affiliate offering a sweepstakes casino game in the state, or accepting revenues from a sweepstakes casino company.

The New York State Gaming Commission or New York State Attorney General will be required to uphold the new law if approved.

Several Other States Considering Ban

New York joins Florida, Maryland, Connecticut, and Mississippi as states examining a potential ban on sweepstakes casinos.

Florida recently saw introduced companion bills in both the House of Representatives and Senate to ban “internet gambling” and “internet sports betting,” targeting sweepstakes gaming companies in the state.

If approved, the legislation will make both a third-degree felony. It will not affect the Seminole Tribe’s ability to offer Florida sports betting, however.

The Mississippi Senate approved a bill banning sweepstakes earlier this month, forwarding SB 2510 to the House by a 44-1 vote. Sen. Joey Fillingane’s (R-41) legislation places online sweepstakes games and sweepstakes casinos on the state’s prohibited games list.

Two companion bills in Maryland were introduced this month in the Senate and House of Representatives to ban online sweepstakes games. Sen. Paul D. Corderman (R-2) introduced SB 860 and Delegate Eric Ebersole (D-44A) introduced HB 1140 as companion bills to ban the form of gaming.

In addition to banning online sweepstakes gaming, the bills will allow the State Lottery and Gaming Control Commission to deny any individual or operator a gaming license or to continue to operate in the state if they accept revenue that is directly or indirectly connected to sweepstakes gaming.

In Connecticut, the Connecticut General Law Committee introduced SB 1235, which prohibits unlicensed participation “in certain real or simulated online casino gaming or sports wagering.”

The bill also prohibits lottery ticket resales and ticket courier services.