New York State Senator Joseph Addabbo has been an advocate for regulated iGaming for some time, but he is now using the ban on online sweepstakes casinos in the state to justify its introduction.
Governor Kathy Hochul signed the Addabbo-sponsored Senate Bill 5935 into law on 5 December, prohibiting the operation or promotion of online sweepstakes games in the Empire State.
Financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers or media affiliates will not be allowed to support online sweepstakes games. The New York State Gaming Commission and the Attorney General can also issue penalties to any violators, including potential loss of a gaming licence or eligibility for one.
A precursor for iGaming
In terms of online gambling in New York, only online sports betting is allowed, but Addabbo believes the online sweepstakes casino ban should serve as a precursor for iGaming to be regulated through legislation.
“Signing my bill into law is not the end of the conversation, but rather a necessary step toward responsible modernisation of New York’s online gaming landscape,” stated Addabbo.
“By shutting down unsafe, unregulated sweepstakes casinos, New York is reaffirming that if online gaming is going to exist in this state, it must be legal, well-regulated, and built with strong consumer protections.”
With sweepstakes casinos banned and the land-based casino licensing process entering its final stages, Addabbo also believes New York is in a strong place to have thoughtful and comprehensive meetings about online gaming regulation.
Addabbo added: “With downstate casino licensing progressing and the illegal sweepstakes loophole now closed, the state is better positioned to hold serious discussions about regulating and potentially legalising iGaming in the near future, possibly as part of the upcoming budget process.
“My priority is to ensure safety, prevent problem gambling, generate much-needed, significant revenue, and keep New York competitive with surrounding states.”
New York’s online sweepstakes games ban follows the likes of California, Connecticut, Montana, Nevada and New Jersey, which already have similar bans in place.
However, iGaming is only legal in seven US states – Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia.
Whether or not any more states will be joining that list remains to be seen, but Addabbo will be hoping New York can enter the iGaming space soon.
