Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News,...
Read Full BioA bill proposing a ban on sweepstakes casinos in New York edged closer to becoming law after advancing in the Assembly.
The Senate passed its version of the bill, S5935, last week in a 57-2 vote, sending it to the Assembly’s Ways & Means Committee. The Assembly Rules Committee then substituted its version of the bill A6745 with the Senate-passed bill and voted to advance the legislation in a 20-9 vote in favor.
The bill now appears set for a vote on the entire Assembly floor, and if passed, it will be sent to Governor Kathy Hochul for signature.
The Assembly has extended its session by three days, after budget negotiations with Gov. Kathy Hochul led to the latest state budget in 15 years. The state Senate finished for the legislative session on Friday.
Should the vote not take place during the remaining period, the bill will carry over to 2026, having already passed the Senate.
Bill Targets Sweepstakes Dual-Currency Loophole
The bill looks to prohibit a platform that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash price, cash award or cash equivalents, and simulates casino-style gaming”. Operators that violate the rules face fines ranging from $10,000 to $100,000.
An amendment in the Senate grants the New York Gaming Commission increased control over defining what constitutes a dual-currency system, enabling the regulator to target sweepstakes platforms.
The Social and Promotional Gaming Association (SPGA) criticized the amendment, arguing it is a “clear acknowledgement that this anti-business bill needlessly threatens New York’s economy”.
The bill was also amended in the Assembly to specify that fines collected will be directed to the Commercial Gaming Revenue Fund for problem gambling education and prevention. Previously, the bill did not note what would happen to the funds.
The bill’s sponsor, Senator Joseph Addabbo commented: “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.”
Sweepstakes Operators Exiting the Empire State
As the bill has progressed, more and more sweepstakes operators have exited New York. A host of companies announced their withdrawal in communications to customers in April, and VGW, the group behind Chumba Casino, Luckyland Slots, and Global Poker, confirmed it would also end operations in the state this month.
State authorities have also been clamping down on platforms, and Attorney General Letitia James issued cease-and-desist letters to 26 operators earlier this month. James commented that “online sweepstakes casinos are illegal, dangerous, and can seriously ruin people’s finances.”
With most operators already out of the state, the bill being passed almost seems irrelevant. Louisiana’s Governor chose not to sign off on similar legislation in the state, claiming that state regulators already had enough authority to shut down illegal gambling sites.
The sweepstakes lobby groups celebrated the decision, which may indicate that new legislation holds some power.
Gov. Neil Lamont in Connecticut, meanwhile, signed off on a bill this week, making the state the second in the US, after Montana, to successfully pass legislation banning sweepstakes.
A ban in New York would be a significant statement from lawmakers against the platforms, which have thus far survived through legal loopholes.
