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New York Senator Joseph Addabbo is pushing for a ban on sweepstakes gaming, arguing that these unregulated platforms should not compete with legal gambling options. His proposed bill, Senate Bill S5935, aims to close a legal loophole that allows sweepstakes casinos to operate without oversight.
Addabbo Prioritizes Regulated iGaming
As a longtime advocate for legal and regulated gambling, Addabbo has worked to expand New York’s gaming industry. However, he opposes sweepstakes casinos, which operate using a dual-currency system where players can obtain virtual currency for free or purchase it with real money. Critics argue that these platforms resemble gambling but operate outside state regulations.
While proponents claim sweepstakes do not constitute gambling since players are not required to spend money, opponents warn they can still lead to addiction and excessive spending. Addabbo maintains that such unregulated gaming must be prohibited, aligning with similar measures taken in Idaho, Michigan, and Washington.
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Bill Defines Sweepstakes and Bans Cash Prizes
Introduced on March 4, Senate Bill S5935 seeks to ban online sweepstakes games that use a dual-currency system and offer prizes, cash, or cash equivalents. The bill clarifies that games without cash rewards would not fall under the ban.
Addabbo emphasized his commitment to protecting New Yorkers from unregulated gambling while continuing efforts to legalize iGaming in the state.
Industry Pushback Against the Ban
The Social and Promotional Games Association (SPGA), which represents the sweepstakes industry, has criticized the proposed ban. The organization argues that prohibiting sweepstakes could harm small businesses and limit consumer choice. Instead of an outright ban, the SPGA suggests implementing regulations and taxation to provide oversight while keeping the industry viable.
Despite opposition, Addabbo remains firm in his stance, pushing for stricter regulations to ensure all gambling in New York operates within a legal and controlled framework.
