New York’s Anti-Sweepstakes Bill Passes Assembly by a Landslide

New York has taken decisive action against sweepstakes as the State Assembly unanimously passed a bill that would prohibit such products in the state. As the measure stands on the verge of passing, sweeps proponents are counting on Governor Kathy Hochul to veto the bill.

Senate Bill 5935 Is on the Verge of Passing into Law

New York’s Senate Bill 5935 was quick to gain traction, passing the Senate with a 57-2 vote before heading to the State Assembly. The Assembly passed the measure with unanimous approval, spelling potential trouble for sweepstakes operators. Now, the fate of sweepstakes hangs in the balance.

Sweepstakes, for context, are a controversial form of gaming that uses a dual-currency system and a framework where players do not necessarily have to spend money to win. As a result, such products have avoided being legally classified as gambling. Sweepstakes casinos have therefore largely operated in a gray area, although regulated industry stakeholders have argued that their products constitute illegal online gambling.

Both tribal and commercial operators, as well as state agencies and industry proponents, have firmly rejected sweepstakes, saying that they are am illegal offering that must be stopped. In New York, efforts against the sector have largely been spearheaded by Senator Joseph Addabbo, a prominent regulated industry advocate.

Addabbo has previously slammed sweepstakes as a product that is both untaxed and unregulated and therefore presents unfair competition to those following the rules.

Sweepstakes Alliances Ask Gov. Hochul to Block the Measure

Lawmakers across the US have been promoting ills that criminalize sweepstakes games for a while, although such measures have so far had mixed results. The success of New York’s SB 5935 could embolden other states seeking to crack down on sweepstakes.

If the bill passes, the Empire State will prohibit online sweepstakes games and revenue from illegal markets. Violators will risk fines of between $10K and $100K, depending on the violation.

Sweepstakes operators are obviously not pleased with the prospects of having their products banned. Representatives of the Social Gaming Leadership Alliance (SGLA) slammed SB 5935 as a rushed and flawed measure. As a result, the body asked Governor Hochul to veto the measure.

The Social and Promotional Games Association (SPGA), an industry body promoting a responsible sweepstakes sector and championing the rights of the sweepstakes industry, on the other hand, has previously promoted the idea of regulating sweeps instead.