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Three members of New York Senate’s Racing, Gaming, and Wagering Committee unanimously forwarded a bill on Tuesday that would enshrine new restrictions on online sweepstakes games in the state. The bill, sponsored by the committee’s chair Sen. Joseph Addabbo, would ban online games that employ a dual-currency system and/or simulate casino-style gaming as part of a sweepstakes in New York.
Support for the bill in the full Senate is less certain. The committee hearing featured only three of its seven members, including Sen. Addabbo himself as the chair. He was joined by the two Republicans on the committee, Sens. James Tedisco and Pamela Helming.
Gambling efforts in New York this year have been focused on the licensing process for three downstate brick-and-mortar casinos. The advancement of Addabbo’s bill is another sign that momentum to restrict sweepstakes-based online casino games is building across the United States.
SB5935 moves to the New York Senate floor
Movement on Addabbo’s SB 5935 has been quick. Addabbo filed the bill on March 4 and the bill got a brief hearing on Tuesday with two of the three present members of the Racing, Gaming, and Wagering Committee voting to recommend the bill and the other voting to advance the bill out of the committee without a recommendation.
S5935 is not yet scheduled for consideration on the full Senate floor. At this time, there is no companion bill in the New York Assembly, the lower chamber of New York’s legislature.
In January, Addabbo cited concerns related to problem gambling and revenue capture for seeking to restrict online sweepstakes gaming. Addabbo has also filed legislation from legal online casino play in her recent budget proposals.
If SB 5935 does see further movement, it would put New York on par with other US states regarding legislation tackling the sweepstakes online casino issue. While no bills targeting such activity have yet become law, some are approaching the finish line.
Concurrent efforts in multiple US states pose threat to sweepstakes online casinos
In terms of active legislation, New York is one of six states that qualify in terms of bills that would restrict the current operations of sweepstakes-based online casino games. Mississippi is the closest to actually doing so, as both chambers of its legislature have passed different versions of a proposal but have yet to meet in conference to produce a solitary bill to advance to Gov. Tate Reeves.
In Maryland, such legislation has $1. Other bills are in earlier stages.
$1 that would escalate penalties for offering gaming without a license, although the legislation does not mention sweepstakes or any of the crucial elements of such games.
Should any bill that aims to limit sweepstakes-based online casino games in New York or any other US jurisdiction become law, immediate court challenges are likely, especially if attempts to enforce the laws are undertaken. For the moment, New York is moving in that direction.
