NY State Bill to Ban Sweepstakes Casinos Advances

New York Senator Joseph Addabbo’s Bill S5935 aiming to ban sweepstakes casinos in the state of New York has passed through the Senate Racing, Gaming and Wagering Committee without opposition. As a result, the Bill has now been referred to the Senate floor for further debate.

If passed, Bill S5935 would see guilty parties, defined as “[an] applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate”, liable for fines of up to $100,000.

Assemblywoman Carrie Woerner has also filed a counterpart Bill A6745. A counterpart Bill is often necessary to ensure a ruling is passed into law quicker.

The current state of Online Gambling in New York

As it stands, sports betting is the only legal form of online real money gambling in the state of New York. As online casinos are not permitted in the state, this could go some way to explaining why anti-sweepstakes bills in the region are becoming numerous. Although sweepstakes casinos are currently legal in New York, many lawmakers believe that they attempt to emulate real money online gambling sites, and should be restricted.

Senator Addabbo’s desire to outlaw sweepstakes casinos is consistent with his previous support of the legalization of online real money casinos in New York. He voiced that he wanted to “push for iGaming as a safe, effective alternative for online casino enthusiasts”.

His stated reasons for doing so were to offer New Yorkers greater protection from gambling addiction, as well as increasing the state’s tax revenues. Yet despite this push, it is unlikely that online gambling will become legal in New York, as three previous bills in support of this mission have failed.

However, it is looking increasingly likely that Senator Addabbo’s anti-sweepstakes Bill S5935 could pass into law given its growing support at the time of writing.