New York Senate Advances Bill to Ban Sweepstakes Casinos
New York’s push to outlaw sweepstakes casinos cleared a key hurdle, as Senate Bill S5935 passed unanimously through the Senate Racing, Gaming, and Wagering Committee. Sponsored by committee chair Senator Joseph Addabbo, the legislation aims to shut down online sweepstakes games and curb revenue from unregulated markets.
A Targeted Crackdown
S5935 zeroes in on sweepstakes casinos, online platforms mimicking traditional casino games through a “dual-currency” payment system, where players buy virtual coins for a shot at cash prizes.
Addabbo has flagged these operations as unregulated loopholes, sidestepping the consumer protections and oversight that govern New York’s legal gambling sector. The bill doesn’t stop at operators. It prohibits financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates from supporting these ventures.
Penalties are steep: fines ranging from $10,000 to $100,000 per violation, plus potential loss of gaming licenses. Enforcement would fall to the New York State Gaming Commission, the Attorney General’s office, and state police if the bill becomes law.
The committee vote saw two “yes” tallies and one “yes without recommendation” from Senator Pamela Helming, who cited constituent questions as her reason for the caveat. While the bill’s next stop is the full Senate, no date has been set for its consideration.
Parallel Efforts
New York isn’t alone in this fight. States like Maryland, Connecticut, Mississippi, Florida, and New Jersey are also targeting sweepstakes casinos with similar measures, reflecting a nationwide push to rein in these gray-area platforms.
Back home, a companion bill in the New York State Assembly mirrors S5935 but remains stuck in committee, lagging behind its Senate counterpart. The synchronized effort signals a growing consensus among lawmakers that sweepstakes operations pose risks. Unregulated access, potential underage play, and competition with taxed, licensed casinos top the list.
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