Bill S5935, which seeks to outlaw sweepstakes gaming enterprises throughout the state, was overwhelmingly adopted by the New York Senate Racing, Gaming, and Wagering Committee. The bill, which was introduced by Senator Joseph Addabbo, aims to outlaw unregulated internet sweepstakes games due to concerns about fair market competition and consumer protection.
If the measure is approved, operators who break its provisions will face severe penalties. Offenders risk having their gaming licenses revoked and facing fines of up to $100,000. Supporters of the measure contend that unregulated illicit sweepstakes casinos endanger vulnerable customers and children.
According to the bill, “These products evade consumer protection, responsible gaming and anti-money laundering requirements to which gambling in New York is otherwise subject. These products and operations are untaxed and unregulated. They present unfair competition to the state’s legal, highly regulated and economically important casinos.”
Industry Backlash Against the Proposed Ban
Following the committee’s approval, the Social and Promotional Games Association (SPGA) voiced strong opposition. The SPGA criticized the legislation, arguing it inaccurately equates legal sweepstakes promotions with illegal gambling. The organization warned that the bill could stifle legitimate businesses and discourage future investment in the sector.
“New York lawmakers are dangerously conflating legal promotional sweepstakes with gambling, creating a broad and misguided precedent that could devastate industries far beyond social gaming,” said the SPGA in a public statement.
They further condemned the lack of consultation with industry stakeholders, asserting, “Instead of engaging stakeholders, lawmakers have fast-tracked a bill that would not only undermine the sweepstakes sector, but also send a chilling message to venture capitalists and tech entrepreneurs.”
While the bill now moves to the New York Senate floor, a formal hearing date has yet to be scheduled. The unanimous support it received at the committee level signals a challenging road ahead for the SPGA and other opponents.
Several neighboring states, including New Jersey, Maryland, and Connecticut, are also considering similar bans on sweepstakes operations in 2025. As the debate continues, all eyes will be on the upcoming legislative sessions to determine the bill’s fate.
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