A New York Senate committee unanimously approved a bill aimed at banning online sweepstakes gaming, moving the measure to the Senate floor. The legislation, S5935, introduced by Sen. Joseph Addabbo, seeks to prohibit sweepstakes gaming operations and block revenue derived from illegal gaming markets.
The New York Senate Racing, Gaming, and Wagering Committee passed the bill without opposition. A companion bill in the Assembly, introduced by lawmaker Carrie Woerner, has yet to advance.
The bill targets “dual-currency” sweepstakes gaming systems, where users acquire virtual coins that can be used for casino-style games and later redeemed for cash or prizes. Critics argue these platforms operate in a legal gray area, offering gambling-like experiences without state oversight.
S5935 also prohibits financial institutions, payment processors, geolocation services, gaming platforms, and media affiliates from supporting sweepstakes operators. Violators could face fines ranging from $10,000 to $100,000 per offense, as well as potential revocation of gaming licenses. If passed, enforcement would be handled by the state’s gaming commission, attorney general’s office, and law enforcement agencies.
Lawmakers pushing for the ban cite concerns over the accessibility of these platforms, particularly among minors. The bill states:
“Online real money ‘sweepstakes casinos’ have recently become widely available in New York over the internet on mobile devices and personal computers, including to minors.”
Additionally, supporters argue that sweepstakes gaming circumvents key regulatory safeguards, such as consumer protections, responsible gaming policies, and anti-money laundering measures. Since these operations are untaxed and unregulated, lawmakers contend they present unfair competition to New York’s legal, state-regulated gambling offerings.
New York joins a growing number of states taking action against sweepstakes gaming. Maryland’s Senate recently passed a bill banning sweepstakes casinos, which is now under review in the House.
In New Jersey, assemblyman Clinton Calabrese introduced a bill to ban sweepstakes platforms, just months after advocating for their legalization. Similar bills have also been proposed in Connecticut and Mississippi.
Original article: https://www.yogonet.com/international/news/2025/03/19/98717-new-york-senate-committee-advances-bill-to-ban-sweepstakes-gaming
