New York, Louisiana Lawmakers Focusing on Sweepstakes Prohibition Bills

• A New York Assembly bill to prohibit sweepstakes has moved forward to another committee
• The Louisiana House of Representatives has scheduled a floor debate for a bill to ban sweepstakes
• Louisiana may become the second state to complete ban the type of gaming

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A New York Assembly bill to prohibit sweepstakes has moved forward to another committee, while a Louisiana bill aiming to do the same only stands one vote away from being sent to the governor.

New York Assembly bill A6745, the assembly counterpart to Senate bill S5935, received a favorable report from the Assembly Committee on Codes and has been referred to the Assembly Ways and Means Committee. Both bills seek to prohibit dual-currency sweepstakes games in the Empire State.

In the Pelican State, Louisiana lawmakers have scheduled a House of Representatives hearing on Senate-approved bill SB 181, which aims to ban dual-currency sweepstakes gaming and prohibit casino-style gaming such as slot machines, lottery games, and sports betting, for next week.

New York Sweepstakes Ban Bill Moves Forward

New York Assembly bill A6745 officially prohibits online sweepstakes games and revenue from illegal markets, plus laying out potential fines for operators or affiliates who offer or accept revenue from the prohibited games.

The bill was introduced in early March to the Assembly Racing and Wagering committee and referred to the Codes committee in late April. It’s sat in the Codes committee for the last month before receiving a favorable report on May 28 and being referred to the Ways and Means committee.

If approved, the bill will prohibit the following:

“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 cash prize, cash award, or cash equivalents, or any chance to win any cash prize, cash award, or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games, lottery games, bingo, or sports wagering.”

The bill gives the New York State Gaming Commission the power to constitute what determines a “dual-currency system of payment.” It’s typically a game where a customer has the option to pay for “sweepstakes coins” and redeem them for cash equivalents.

The bill’s Senate counterpart, S5935, was moved out of committee in late April and is currently waiting a Senate floor hearing.

Louisiana Bill Has One Last Step

The Louisiana House Committee on Administration of Criminal Justice recently approved Sen. Adam Bass’s (R-36) bill, SB 181 by an 8-0 vote. It was the bill’s final House committee stop and has since been moved to the House floor.

The House originally scheduled a hearing for the bill on May 29, but the hearing was delayed and will now be held on Monday, June 2. If approved by the House, it will be sent to Gov. Jeff Landry’s (R) desk to potentially be signed into law.

The bill has had very little opposition as its made its way through the legislative steps. The Louisiana Senate approved the bill by a 39-0 vote in April.

If approved, the Louisiana Gaming Control Board will have the ability to bring civil enforcement actions and impose civil penalties on companies engaging in the illegal form of sweepstakes gaming. The Louisiana Gaming Control Board will have the ability to fine operators, promotors, media affiliates, or providers if they engage in or procure revenue from the illegal form of sweepstakes gaming. The board will be able to levy fines from $10,000 to $100,000 per incident.

Bass’s legislation prohibits sweepstakes games that utilize a dual-currency system of payment that allows a customer to exchange the currency for any prize, award, cash, cash equivalents, or a chance to win a prize that simulates a form of gambling.

The bill will ban sweepstakes gambling that mirrors the following:

• Casino-style gaming such as slot machines, video poker, and table games such as blackjack, roulette, craps and poker
• Lottery games, including draw games, instant win games, keno, and bingo
• Sports betting