A bill to ban sweepstakes has gained unanimous approval from a New York Senate committee and will now be considered by the full Senate.
The New York Senate Racing, Gaming and Wagering Committee passed SB 5935, introduced by Chair Joseph Addabbo – a longtime advocate for legal iGaming in the state.
Underlining the need for the bill, Addabbo told the committee members: “We have these online sweepstakes casinos that basically look a lot like casino games, but they go unregulated. Right now we have a number of states, Connecticut being one of them, that basically made it illegal. They kicked out one of their operators.
“We’re looking to ban these kinds of illegal, unregulated gaming sites in New York state.”
SB 5935 targets dual-currency sweepstakes gaming systems, seeking to prohibit their operations and block revenue derived from illegal gaming markets.
Following a similar trend to other states such as Nevada and Maryland that are considering similar bills to block the vertical, Addabbo’s bill also targets the suppliers of sweepstakes casinos.
Financial institutions, payments processors, geolocation services, gaming platforms and media affiliates would face fines ranging from $10,000 to $100,000, and the potential revocation of gaming licences, if they were found to be supporting sweepstakes operators.
Legislation against sweepstakes casinos in New York is a significant blow to the sector given the volume of players that are available within the state.
In 2024, no US state took more money in sports bets or reaped more in wagering tax revenue. A total of $22.6bn was wagered in The Empire State and gross gaming revenue topped out at just over $2bn.
In response to the efforts of Addabbo, the Social and Promotional Games Association (SPGA) told SBC Americas that it “strongly denounces the blatant overreach” of the bill that “recklessly mischaracterises” sweepstakes gaming.
SPGA called on New York legislators to “stop this reckless march toward economic self-sabotage and reject this deeply flawed bill before it inflicts lasting damage.”
The bill will now be considered by the full Senate, meanwhile, a companion bill in the Assembly, introduced by lawmaker Carrie Woerner, has yet to advance.
