Anti-Sweepstakes Bill Passes In New York Senate

New York moved a large step closer to banning online sweepstakes casinos Wednesday night when a bill sponsored by state Sen. Joseph Addabbo overwhelmingly passed in the Senate.

S5935 passed by a 57-2 vote, with four state senators abstaining. The bill was delivered to the Assembly and referred to the Ways and Means Committee. A companion bill, A6745, submitted by Assemblywoman Carrie Woerner passed through a third lower-chamber committee Friday.

New York looks poised to join Louisiana, Connecticut, and Montana as states where legislators have passed anti-sweeps bills during this legislative calendar year. The bills in Louisiana and Connecticut are awaiting the signatures of their respective governors, while Montana’s bill will take effect Oct. 1 after being signed into law by Gov. Greg Gianforte in late March.

Another win for Addabbo

Addabbo’s status as the primary Senate legislator for gaming gives the bill heft, and anti-sweeps sentiment in New York had gained momentum Friday when state Attorney General Letitia James sent cease-and-desist orders to 26 operators regarding selling sweeps coins.

Addabbo, whose district is in Queens, was active in getting his bill over the finish line in the upper chamber and provided a statement of support to James’ cease-and-desist letters to the Attorney General.

“These so-called sweepstakes casinos not only put individuals at risk of fraud and financial exploitation, but they also create dangerous pathways for gambling addiction, especially among minors,” he said. “This is not about taking away anyone’s livelihood, it’s about protecting New Yorkers and working toward a safer, regulated online gaming environment for age-appropriate individuals.

“I commend Attorney General James and her office for their dedication towards protecting our residents and for recognizing the urgent risks posed by these illegal platforms.”

VGW, one of the world’s largest online casino platforms, already has reportedly put a plan in place to remove the sweepstakes platform from its gaming suite in the state that was expected to take place through the summer.

The Social and Promotional Games Association (SPGA) expressed opposition to Addabbo’s bill in May via spokesperson after it passed with amendments.

“It’s a political patch meant to quiet critics without solving the underlying problem,” the spokesperson said. “By leaving the definition of a dual-currency system up to regulators, the amended bill simply punts the problem to the Gaming Commission. This ill-conceived pivot only deepens the risks to mobile game operators, marketing platforms, and loyalty systems by injecting even more ambiguity.”

“New York legislators are publicly admitting the bill was flawed, and other states like Louisiana should take note before making the same mistake,” the spokesperson continued. “This was already bad legislation. Lawmakers have taken a mess and made it into a catastrophe.”