A New York Senate committee has unanimously approved a ban on sweepstakes casinos.
The NYS Senate Racing, Gaming, and Wagering Committee passed Sen. Joseph Addabbo Jr.’s SB 5935 bill, targeting operators and suppliers involved in sweepstake casino operations. The bill now advances to the Senate floor, where it requires majority support to proceed. The approval came during a brief five-minute session, which also advanced two other legislative measures.
Addabbo Jr, the bill’s sponsor, mentioned:
This is a growing issue. We have these online sweepstakes casinos that basically look a lot like casino games, but they go unregulated. Right now, we have a number of states, Connecticut being one of them, that basically made it illegal. They kicked out one of their operators, and that operator was actually targeting individuals who self-excluded.
The bill not only bans the operation of sweepstakes casino platforms but also prohibits financial institutions, payment processors, geolocation providers, content suppliers, platform providers, and media affiliates from supporting them. Violations carry penalties ranging from fines of $10,000 to $100,000 per offense, along with the potential revocation of gaming licenses.
The proposed law’s justification stated:
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.
These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject.
The legislation will provide a powerful deterrent to offshore and domestic illegal online gaming operators from entering the state and/or to withdraw from the state and will provide robust tools to the Gaming Commission and the Attorney’s General Office to enforce the law.
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