A bill looking to ban sweepstakes casinos in the Empire State has passed through the Senate Racing, Gaming and Wagering Committee without opposition. Soon after, many key operators announced their withdrawal from New York.
Chair of that group and New York Senator Joseph Addabbo introduced Senate Bill S5935 earlier this month. On Tuesday (18th) the bill was approved 6-0 by his committee, meaning it’s now been referred to the Senate floor, where it will be debated further.
The bill seeks to prohibit “online sweepstakes games and revenue from illegal markets” by amending the current Racing, Pari-mutuel Wagering, and Breeding Law. It passes the responsibility for enforcement to the state gaming commission, the state police, or the Attorney General’s office, and creates the possibility for fines of up to $100,000.
It’s worth noting penalties can apply to an “applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate” rather than simply to companies.
An identical counterpart bill, A6745 has also been filed in the Assembly by Assemblywoman Carrie Woerner; two parallel bills in this fashion are often necessary to ensure swifter passage into law.
Online Gambling in the Empire State
New York is a state that currently permits online gambling in the form of sports betting, but that’s where things end. It’s not among the states that allow online casinos and poker, which might explain some of the reasoning behind the anti-sweepstakes bills. Lawmakers see sweepstakes casinos as attempting to imitate traditional online casinos, while sweepstakes operators argue that their practices are legal under NY sweepstakes laws.
However, things get interesting when you learn that Addabbo has voiced support for legalizing online casinos and poker in NY state in the past. The Senator has said he wants to outlaw sweepstakes casinos and “push for iGaming as a safe, effective alternative for online casino enthusiasts.” He argues this would create greater protection from gambling addiction, along with raising more revenue for the state via taxation (New York is currently experiencing a budget deficit).
Addabbo has also made noises around extending online gambling licensing in NY to current and forthcoming casinos, tribal casinos, VLT parlors, and online sports betting operators.
However, three bills designed to legalize traditional online gambling in his state have gone nowhere, so it’s unlikely there’d be support for the same thing anytime soon.
Fortunately for Addabbo, his anti-sweepstakes bill seems to be getting the support it needs, gradually passing through the legislature, and mirroring similar efforts in other states like neighbors New Jersey, as well as Arkansas, Florida, Maryland, and Mississippi.
Author: Joseph Allen
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