Sweepstakes casinos are no more in the Empire State, as Governor Kathy Hochul has signed Senate Bill 5935 into law, which prohibits operating or promoting online sweepstakes games in New York.
Penalties can also be issued by the New York State Gaming Commission and the Attorney General against violators, including fines between $10,000 and $100,000 and potential loss of a gaming licence or eligibility for one.
The bill also states that financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers or media affiliates will not be allowed to support online sweepstakes games.
Although anti-sweepstakes legislation was passed by the state senate back in June, it was only delivered to Governor Hochul at the start of this month, before being signed into law on 5 December, according to the New York State Senate website.
SB 5935 was introduced in New York back in March and is sponsored by Senator Joseph Addabbo, who has been a long-time advocate of legalised iGaming in the Empire State.
Currently, only online sports betting is legalised in New York, but further expansion is coming soon in the state, just in its land-based sector for now.
Land-based expansion
Earlier this month, the casino licensing process entered its final stages, as the New York State Gaming Facility Location Board approved the final three applications – Bally’s Bronx, Hard Rock Metropolitan Park and Resorts World New York City – to the Gaming Commission for licensure consideration.
The board stated: “Using conservative assumptions, the Board’s consultants project incremental annual gaming tax revenue of nearly $1bn in 2036—totalling approximately $7bn between 2027 and 2036—plus $1.5bn in licensing fees.
“Additional state and local taxes—property, sales, hotel occupancy, and others—are projected to generate approximately $5.9bn over 10 years. Problem gambling programs are projected to receive approximately $10.7m annually.”
The commission now has until 31 December to issue up to three commercial casino licences, ensuring that the state collects the casino license fee(s) ahead of schedule.
Approved projects must pay a $500m licence fee, have a minimum capital investment of $500m and will be subject to minimum tax rates of 25% for slot machines and 10% for table games.
