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After several months in limbo, New York officially banned casino and sportsbook-style sweepstakes gaming on Friday after Gov. Kathy Hochul signed a legislature-approved bill into law.
Sen. Joseph Addabbo’s S5935 prohibits all sweepstakes platforms that operate a dual-currency system that allows players to exchange game currency for any cash prize, cash award or cash equivalents and which mimic casino gaming, Sports Betting, lottery products or bingo.
As stipulated in the text of the bill, the ban was enacted immediately upon Hochul signing the legislation.
However, it lay dormant for several months after being adopted on June 17, and was only formally delivered to Hochul’s desk on Dec. 1. Within four days, the governor signed it.
Anyone found to be violating the terms of the prohibition could face fines of between $10,000 and $100,000 for each violation, as well as the revocation of an existing gaming license or ineligibility for a new license.
The Social Gaming Leadership Alliance (SGLA), whose membership comprises various social gaming and sweepstakes companies, said in a statement that Hochul “chose a short-sighted path” by banning the sweeps vertical entirely.
The newly enacted bill gives the New York State Gaming Commission (NYSGC), in tandem with state police and the Attorney General’s Office, the powers to investigate and issue cease-and-desist orders to entities that fail to adhere to the bill.
With New York lawmakers pushing to ban the vertical, Chumba Casino, LuckyLand Slots and Global Poker owner VGW announced as early as May that it would be shutting down Sweeps Coin play in the Empire State.
Before the bill was even passed by the legislature, AG Letitia James‘ office announced in June that it sent C&Ds to 26 online gaming platforms deemed to be offering sweepstakes gambling. James said all 26 recipients complied with the order, including VGW, Fliff, High 5 Casino, Fortune Coins and more.
“While we were working on the bill, it was nice to see our Attorney General and gaming commission doing what they can and basically scaring these companies out of New York,” Addabbo told SBC Americas in September. “Some of them saw us pass the legislation, saw the Attorney General’s office getting involved, and left on their own.”
After several months in limbo, New York officially banned casino and sportsbook-style sweepstakes gaming on Friday after Gov. Kathy Hochul signed a legislature-approved bill into law.
Sen. Joseph Addabbo’s S5935 prohibits all sweepstakes platforms that operate a dual-currency system that allows players to exchange game currency for any cash prize, cash award or cash equivalents and which mimic casino gaming, Sports Betting, lottery products or bingo.
As stipulated in the text of the bill, the ban was enacted immediately upon Hochul signing the legislation.
Sweeps bill swept through legislature
Addabbo’s bill made hasty progress after passing the Senate, getting the green light in the Assembly within a week.However, it lay dormant for several months after being adopted on June 17, and was only formally delivered to Hochul’s desk on Dec. 1. Within four days, the governor signed it.
Bill also penalizes suppliers and affiliates
S5935 not only targeted the operators of sweeps sites but also technology or game suppliers, as well as other partner entities like platform providers, payment processors and financial institutions, geolocation firms and media affiliates that worked with sweeps sites operating within the state.Anyone found to be violating the terms of the prohibition could face fines of between $10,000 and $100,000 for each violation, as well as the revocation of an existing gaming license or ineligibility for a new license.
The Social Gaming Leadership Alliance (SGLA), whose membership comprises various social gaming and sweepstakes companies, said in a statement that Hochul “chose a short-sighted path” by banning the sweeps vertical entirely.
The newly enacted bill gives the New York State Gaming Commission (NYSGC), in tandem with state police and the Attorney General’s Office, the powers to investigate and issue cease-and-desist orders to entities that fail to adhere to the bill.
With New York lawmakers pushing to ban the vertical, Chumba Casino, LuckyLand Slots and Global Poker owner VGW announced as early as May that it would be shutting down Sweeps Coin play in the Empire State.
Before the bill was even passed by the legislature, AG Letitia James‘ office announced in June that it sent C&Ds to 26 online gaming platforms deemed to be offering sweepstakes gambling. James said all 26 recipients complied with the order, including VGW, Fliff, High 5 Casino, Fortune Coins and more.
“While we were working on the bill, it was nice to see our Attorney General and gaming commission doing what they can and basically scaring these companies out of New York,” Addabbo told SBC Americas in September. “Some of them saw us pass the legislation, saw the Attorney General’s office getting involved, and left on their own.”
