New York Senate Committee Moves with Sweepstake Casino Ban

The New York Senate Racing, Gaming, and Wagering Committee has unanimously approved SB 5935, a bill to ban sweepstake casinos.

The legislation, sponsored by Sen. Joseph Addabbo Jr., aims to penalize operators, suppliers, and financial institutions supporting sweepstake casinos.

While moving to the Senate floor, the bill has sparked debate, with the Social and Promotional Games Association (SPGA) calling it an “overreach.”

New York Senate Committee Moves Forward with Sweepstake Casino Ban

Key Takeaways from New York’s Sweepstakes Casino Ban

• The bill bans sweepstake casinos, targeting operators, payment processors, geolocation providers, and media affiliates.
• Violations will carry fines ranging from $10,000 to $100,000, with potential gaming license revocations.
• Supporters claim it protects consumers, while critics argue it mischaracterizes promotional sweepstakes.

Bill Details: New York Moves to Restrict Sweepstakes Casinos

The New York Senate Racing, Gaming, and Wagering Committee has approved Senate Bill 5935, moving it one step closer to becoming law.

What does SB 5935 aim to do?

• It prohibits sweepstake casinos from operating in New York by criminalizing both domestic and offshore entities.
• It also bans financial institutions, payment processors, and tech providers from facilitating sweepstake casino transactions.

Who is leading the bill?

Sen. Joseph Addabbo Jr., a longtime advocate for responsible gaming legislation, is pushing the measure forward.

Why is New York Targeting Sweepstakes Casinos?

• Regulatory Loopholes: Sweepstake casinos mimic real-money gambling sites but operate outside traditional gaming laws.
• Consumer Protection Concerns: Some operators allegedly target self-excluded players and minors, exploiting gaps in regulation.
• Following Other States: Connecticut recently expelled a sweepstakes operator from its market, setting a precedent.

Potential Impact of the Ban

If passed, SB 5935 will introduce significant penalties for violations.

For Operators and Suppliers:

• Heavy fines of $10,000 to $100,000 per violation
• Possible loss of gaming licenses for affiliated businesses

For Financial Institutions and Media Companies:

• Prohibited from processing sweepstakes casino transactions
• Affiliate marketers cannot promote sweepstake gaming sites

For Consumers:

• Limited access to unregulated gaming platforms
• Stronger consumer protection measures

SPGA Pushes Back Against “Overreach”

Not everyone supports the bill.

The Social and Promotional Games Association (SPGA), representing sweepstakes operators, has strongly opposed the proposed legislation.

An SPGA spokesperson told GAMINGO.news:

“This legislation recklessly mischaracterizes sweepstakes gaming and threatens legitimate businesses with unnecessary and harmful regulation.”

• SPGA argues that sweepstakes are a widely accepted marketing tool used by companies across industries.
• The group warns that fast-food chains, app developers, and online brands that rely on sweepstakes promotions could face unintended consequences.

More States Are Moving Against Sweepstakes Casinos

New York isn’t alone in this crackdown.

Other states, including New Jersey, Maryland, Connecticut, Florida, Mississippi, and Nevada, have introduced similar bills restricting sweepstakes casinos.

Industry experts believe this growing trend could signal a larger federal push to regulate online sweepstakes gambling.

A Defining Moment for Online Gaming in New York

SB 5935 marks a major step in New York’s efforts to regulate online gambling and close sweepstakes casino loopholes.

Supporters argue the bill strengthens consumer protections and prevents problem gambling.

Critics warn of unintended consequences that could impact legal sweepstakes promotions.

The bill now moves to the New York Senate floor, where its fate will be decided. If passed, it could reshape the online gambling landscape in the state.