New York legislators unanimously pass bill to prohibit sweepstakes casinos
Bill S5935, originally introduced by Senator Joseph Addabbo, will now move to the Senate floor, looking to ban online sweepstakes games and revenue from illegal markets.
Key Points
- The SPGA issued an official statement in response to the legislation, claiming Senator Addabbo’s bill “recklessly mischaracterizes” sweepstakes and threatens legitimate business
- New York now joins states such as Maryland, New Jersey and Connecticut in attempting to have legislation passed that would officially ban sweepstakes operations
The New York Senate Racing, Gaming and Wagering has unanimously passed bill S5935, which would officially prohibit sweepstakes operations within the Empire State, leading to a response being issued by the Social and Promotional Games Association (SPGA).
Having been originally introduced by Senator Joseph Addabbo, the legislation would ban online sweepstakes games and revenue from illegal markets, while also enforcing penalties and provisions for operators that do not comply. Fines of up to $100k will be issued if any violations are found and the operator’s gaming license shall be revoked, according to Senator Addabbo’s bill.
“Online real money ‘sweepstakes casinos’ have recently become widely available in New York over the internet on mobile devices and personal computers, including to minors,” Bill S5935 states.
“These products evade consumer protection, responsible gaming and anti-money laundering requirements to which gambling in New York is otherwise subject. These products and operations are untaxed and unregulated. They present unfair competition to the state’s legal, highly regulated and economically important casinos.”
Bill S5935 will now move to the New York Senate floor, but has not been scheduled for hearing at the time of writing. The unanimous approval equates to a significant step forward for Senator Addabbo’s legislation, however, as states such as New Jersey, Maryland and Connecticut have also looked to officially ban sweepstakes operations during 2025.
Good to know: The SPGA recently urged New Jersey lawmakers to vote ‘no’ on bill 5447, a measure looking to eliminate sweepstakes gambling from the Garden State
In response to the bill’s approval, the SPGA released a statement detailing how the legislation “recklessly mischaracterizes sweepstakes gaming and threatens legitimate businesses with unnecessary and harmful regulation.”
“New York lawmakers are dangerously conflating legal promotional sweepstakes with gambling, creating a broad and misguided precedent that could devastate industries far beyond social gaming,” SPGA said.
“Even more alarming is the legislature’s disregard for industry expertise. Instead of engaging stakeholders, lawmakers have fast-tracked a bill that would not only undermine the sweepstakes sector, but also send a chilling message to venture capitalists and tech entrepreneurs.”
The SPGA requests that New York legislators “stop this reckless march toward economic self-sabotage” and choose to reject bill S5935 once it is eventually heard on the Senate floor.
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