A Sweepstakes Casino Ban is Advancing in NY
A public hearing in the New York State Assembly led to a unanimous vote to approve a bill that would ban sweepstakes casinos. The bill must now be vetted further before heading to a potential vote in this session.
NY lawmakers have advanced a bill banning sweepstakes casinos.
Key Facts:
- If passed, Assembly Bill 6745 would prohibit sweepstakes casinos in the state of New York
- Assembly sent bill out of committee with approval, and now it heads to Standing Committee on Codes
- Bill sets fines and punishment for violations of the gambling code by sweepstakes casino operators
New York could become one of the first states to ban so-called sweepstakes casinos. That’s if Assembly Bill 6745 navigates the legislature and receives a positive vote from lawmakers in Albany.
Sweepstakes casinos rely on a token-like scheme instead of requiring real money. Users can accumulate tokens or coins and redeem them for gifts or cash. Because the gameplay in sweepstakes casinos does not require the deposit of real money, these platforms are not technically prohibited, as New York gaming law is currently established.
Assembly member Carrie Woerner (Democrat, District 113) says the sweepstakes games are operating outside the law, which should stop.
A sweepstakes casino game, Woerner says, “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash price, cash award or cash equivalents.”
Her bill would prohibit these platforms and give the state the ability to enforce that ban.
AB 6745 would prohibit any online games that mimic casino-style games. These apps often also offer video poker and sports betting without real-money betting. The bill also addresses draw contests, keno, and the so-called instant “win-now” game offered through a non-real tender framework.
In order to ban sweepstakes games, the bill must amend New York’s racing, parimutuel wagering, and breeding laws regarding online gambling. The state permits online sports betting, but does not allow online casino gaming. New York has limited casino gaming and a state lottery.
Under AB 6745, NY state regulators would be able to levy fines ranging from $10,000 to $100,000 for each violation. A company in violation could also have its gaming license revoked.
In recent months, several states have taken steps to address sweepstakes casino gaming apps. Gradually, following the spread of legal online betting since a landmark 2018 U.S. Supreme Court ruling that cleared the way, online casinos have popped up, regulated or not.
In Connecticut, the legislature has introduced a bill to ban these products. Montana has passed a ban and now only awaits a signature from its governor. Louisiana has also introduced a bill to do the same.
In Mississippi, efforts were thwarted when lawmakers attached language to a sweepstakes ban that would have legalized online sportsbooks.
Parallel to the State Assembly effort, the NY Senate also has a sweepstakes casino ban on the table. Earlier this year, Senator Joseph Addabbo Jr. (Democrat, 15th State Senate District) introduced Senate Bill 5935, which has essentially the same language as Woerner’s bill.
The Addabbo bill is awaiting further action but has been read into the record three times. No future vote is scheduled as of yet.
Time is of the essence for any efforts to ban sweepstakes casinos in the Empire State: the New York legislative session adjourns on June 12.
If either the Woerner or Addabbo bills fail to reach a vote, lawmakers would need to come back to the issue from square one next January.
