Sweepstakes casinos across New York have informed customers that they will no longer be operating in the state.
Users from a wide range of sites were informed last week that the casinos will be leaving the New York market in April.
Among those exiting the state is PlayFame, which told customers: “We are disappointed to advise that as of 30 April, players in New York will no longer have access to our social gaming services.
“This was a difficult decision for us to make and we understand this may be disappointing news.”
Like many states across the US, the sweepstakes vertical has come under intense scrutiny from lawmakers.
Last week, SB5935, a bill that would ban sweepstakes gaming sites using a dual-currency system and punish suppliers or affiliates who work with sweepstakes operators in New York, advanced out of committee and now sits with the state’s Senate.
In a statement released on Wednesday, the Social and Promotional Gaming Association (SPGA) took aim at the legislation, arguing that sweepstakes sites are currently acting within the rule of law if a bill to specifically prohibit sweeps is needed.
The organisation also remained defiant despite the numerous exits, reiterating that sweepstakes operators are working with the New York Gaming Commission to “adjust their approach” in the state.
An SPGA spokesperson said: “Innovation in digital entertainment often requires a constructive and informed dialogue with lawmakers and policymakers. We saw that dynamic with fantasy sports, and we believe the same approach will help shape smart policy around sweepstakes promotions.
“We know New York officials recognise the need to get this right. Any decisions about social sweepstakes could have broader implications—not only for promotions by companies like Starbucks and Marriott, but also for any mobile game where consumers spend money, from Candy Crush and Coin Master to Clash of Clans and Monopoly Go.”
Notably, the market leader in New York, VGW, has not sent players any communications related to the future of its Chumba, Luckyland or Global Poker brands.
