New York Senate Says No To Sweepstakes Gaming

• The New York Senate approved S5935A, a bill to prohibit dual-currency sweepstakes gaming in the state
• Sen. Joseph P. Addabbo Jr. (D-15) said dual-currency sweepstakes operators allow people to game legally
• Comes less than a week after the New York Attorney General cracked down on sweepstakes operators

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The New York Senate roundly approved a bill to prohibit dual-currency online sweepstakes games in the Empire State.

The New York Senate approved Sen. Joseph P. Addabbo Jr.’s (D-15) bill, S5935A, by a 57-2 vote. The legislation officially prohibits online sweepstakes games and revenue from illegal markets, plus lays out potential fines for operators or affiliates who offer or accept revenue from the prohibited games.

“They’ve been targeting minors and have been allowing people to game illegally. We’re taking a good step to avoid that,” Addabbo Jr. said during the Wednesday’s Senate floor vote.

Casino Style Sweepstakes Games Targeted

The approved legislation, which has been moved to the New York Assembly, specifically targets dual-currency sweepstakes games that mirror casino-style games and sports betting.

Addabbo Jr.’s bill provides the following definition of a prohibited 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 that do not award cash prizes or cash equivalents will not be prohibited under the law.

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.

Addabbo Jr. assured his senate colleagues the bill this does not target sweepstakes games offered by companies like Starbucks, Jersey Mike’s, or others as long as they do not offer casino-style sweepstakes games where money can be exchanged.

Online casino or iGaming is not yet legal in New York, Addabbo Jr. reminded the senate.

“Until we legalize online gaming in New York, we do not want the illegal market to expand, to grow, to target minors or those that have problems. The fines that will be issued will go right to problem gaming programs,” he said.

The approval of the bill comes less than a week after New York Attorney General Letitia James announced that her office ceased operations of 26 sweepstakes casino operators in the Empire State.

NY AG: Online Sweepstakes Casinos Are Illegal

The Office of the Attorney General (OAG), working with the New York State Gaming Commission, identified 26 online platforms offering dual-currency sweepstakes games within the state.

After receiving cease-and-desist notices from Attorney General James, each operator agreed to cease the sale of sweepstakes coins in the state.

“Online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances,” Attorney General James said. “I thank the New York State Gaming Commission and Senator Addabbo for partnering with my office on this issue to protect New Yorkers.”

Online sweepstakes casinos put New York customers at risk, according to the Attorney General’s office, as they are not subjected to audits and other regulatory oversight by the state to ensure that games are not rigged.

The following sweepstakes operators have agreed to cease the sale of sweepstakes coins in New York:

• Chanced
• Chumba
• DingDingDing
• Fliff
• Fortune Coins
• Fortune Wheelz
• Funrize
• FunzCity
• Global Poker
• Golden Hearts Games
• High 5 Casino
• Jackpota
• Luckyland
• McLuck
• Mega Bonanza
• NoLimitCoins
• Play Fame
• RealPrize
• Sidepot
• SpinBlitz
• Sportzino
• SweepSlots
• Sweeptastic
• TaoFortune
• Yay Casino
• Zula Casino