Lawmakers in New York are cracking down on online sweepstakes-style gambling, as a new bill gains traction in the state assembly. Assembly Bill 6745 led by Assemblymember Carrie Woerner, got full backing from the Assembly Racing and Wagering Committee last week. This marks a big move to ban digital platforms that copy traditional casino experiences using virtual currencies.
Sweepstakes Games Exploit Legal Gaps with Virtual Currencies and No Gambling License
The law puts sweepstakes games in the category of online contests that use two virtual currencies, usually a system of “gold” to play and “sweep” coins you can exchange for cash or prizes equal to cash. These platforms often work in areas where the law is not clear, offering games like slots, poker, keno, and even sports betting simulations, without needing a regular gambling license.
AB 6745 wants to stop this by banning these operations. The restrictions will apply to licensed gaming operators, suppliers, geolocation services, companies that handle payments, employees, and even people who invest in these platforms. The bill sets out tough punishments for breaking the rules, including fines between $10,000 and $100,000 for each violation, and possibly taking away gaming licenses.
The New York State Gaming Commission, Attorney General’s office, and state police would oversee and enforce the new rules. Money from fines would go to the Commercial Gaming Revenue Fund to help prevent and treat gambling addiction.
Real Prize and Other Sweepstakes Platforms Pull Out of New York Ahead of Senate Bill Vote
The Senate is making similar moves. Senator Joseph Addabbo has put forward the same plan, Senate Bill 5935, which has moved to its third reading. This sets up a final vote before the legislative session ends on June 12.
Companies in the industry have started to respond. Some sweepstakes platforms, like Real Prize, have stopped operating in New York as they expect new rules. This leaves users unable to cash out their winnings. Other platforms will do the same soon.
New York’s plan is part of a bigger push across the country to crack down on uncontrolled sweepstakes gambling. States like Louisiana and Montana have approved similar rules, while Illinois, Maryland, and Connecticut are now looking at their own ideas. On the flip side, attempts to put bans in place have hit a wall or been shot down in Mississippi and New Jersey.
Politicians backing theNew York bill say these online sweepstakes sites put consumers at real risk, especially those who are prone to addiction, because they look like real-money gambling but have almost no rules. With support from both sides, the bill is now waiting for the Assembly Codes Committee to take a closer look.