New York state Sen. Joseph Addabbo is repsonsible for a number of pieces of gambling reform legislation this year and now he has another one on his plate.
Bill calls out banks, suppliers that support sweeps operators
His latest bill, S5935, would explicitly prohibit online sweepstakes casinos from operating within the state. It would also be a potential blow for gaming affiliates and suppliers, as it would push out anyone that “knowingly accepts revenue that is directly or indirectly derived from online sweepstakes games” from operating in the state.
The specific text of the bill clarifies that “it shall be unlawful for any applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platofrm provider or media affiliate to support the operation, conduct or promotion of sweepstakes games within the state of New York.”
Robust definition of what makes an online sweepstakes game
The bill defines online sweepstakes games as:
“Any game, contest or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or any chance to win any price [sic], award, cash or cash equivalents and simulates casino-style games including but not limited to draw games, instant win games, keno, and bingo, and sports wagering. A sweepstake shall not include a game which does not award cash prizes or cash equivalents.”
The handful of bills across the U.S. trying to prohibit sweepstakes gaming have taken different approaches to defining the sub-category of social casinos.
Sweepstakes casinos offer a fully free-to-play product with the option to buy additional currency like many other social gaming apps like Candy Crush or Slotomania. However, in addition to receiving those coins, users also receive an allotment of what are typically called “sweeps coins”, which can be cashed out for real money.
The New York definition is one of the more thorough and precise definitions for sweepstakes operators. By comparison, a similar bill in Mississippi does not even put forth a definition of “online sweepstakes casino” at all.
Addabbo introduced the measure on March 4 and it currently sits in the Senate Racing, Gaming and Wagering Committee, which he chairs.
Casino legislation not moving in New York yet
Addabbo mentioned that sweepstakes were part of his legislative agenda this year when he reintroduced his online casino and lottery legislation back in January.
“Without an option for safe, regulated online gaming, many individuals will fall victim to sweepstakes casinos that entice customers through free play advertising with the potential for prizes through the purchase of gold coins. I encourage my colleagues and the Governor to take action against unregulated sweepstakes casinos, while reconsidering the benefits of allowing legal iGaming operators to provide sanctioned services in a popular and ever-growing industry,” he said at the time.
The Senate Racing, Gaming and Wagering Committee has only met once so far this year. During that meeting, they advanced legilsation on lottery, horse racing and a bill to expand the scope of prop bets state sportsbooks can offer but nothing related to casino gaming, online or land-based.
The only sweepstakes legilsation to make much progress so far this year has been the Mississippi bill, which advanced through the Senate with near-unanimous support.
