New York Bans Sweepstakes Casinos as Downstate Casinos are Greenlit
In New York, online sweepstakes casinos are currently prohibited.
Senate Bill 5935 was signed into law by New York Governor Kathy Hochul (D) on Friday. Online social gaming systems that use dual currency schemes, which effectively let gamers bet for money, are prohibited by the statute. As soon as the governor signed the bill, it went into effect.
"Online sweepstakes game shall mean any game, contest, or promotion that is available on the internet or accessible on a mobile phone, computer, or similar device that utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award, or cash equivalent,” the New York law reads.
In June, SB5935 was approved by the State Legislature. By a vote of 57 to 2, the New York Senate approved the prohibition on sweepstakes casinos. The legislation was unanimously approved by the State Assembly, 141-0, just four days later.
Because Hochul took her time signing the bill, supporters of sweeps believed they might be able to get a veto. The Democrat ultimately backed her and outlawed online dual-currency sweepstakes games.
After casinos are approved, the sweepstakes is banned.
Only a few days after a New York state government body suggested three downstate casino proposals for licensing, Hochul signed on. Before the year ends, state-issued slot, table game, and sports betting licenses are anticipated to be awarded to multibillion-dollar casino proposals in the Bronx and Queens.
Hard Rock and billionaire Steve Cohen will move forward with their $8 billion Metropolitan Park development in Willets Point if the licenses are approved, as anticipated. Bally's Corp. is the company behind the $4 billion Bally's Bronx complex at Ferry Point Park, and Resorts World plans to invest $5.5 billion to renovate Resorts World New York City.
Once seen as a leading candidate for a downstate New York casino license, Las Vegas Sands abandoned its Long Island casino idea in April. Concerns with iGaming authorization were the company's stated reason for leaving.
Eliminating the contentious promotional vehicles will probably satisfy the three downstate concessionaires and their business outlooks, even though dual-currency sweepstakes casinos are unregulated online games and not the kind of iGaming that state lawmakers are likely to consider in future legislative sessions.
Does the Sweepstakes End Soon?
According to dual-currency online sweepstakes platforms, they run social games that are free to play. The auxiliary currency, sometimes known as sweepstakes coins, can be used to participate in promotional contests where cash prizes can be redeemed.
Attorneys general, state legislators, and gaming authorities have not been interested in what the sweeps platforms have to offer. Online sweepstakes casinos, according to those interests, are illegal forms of gambling.
Legislation prohibiting sweepstakes casinos has been passed in New York, California, Connecticut, Idaho, Montana, New Jersey, and Washington. States have issued cease-and-desist orders for sweeps out in Arizona, Arkansas, Delaware, Louisiana, Maryland, Michigan, Mississippi, Nevada, Pennsylvania, and Tennessee.
State lawmakers and authorities, according to the Social Gaming Leadership Alliance (SGLA), an advocate group for the contentious apps and websites, are making snap decisions.
"Online social games are a mainstream digital entertainment category that delivers interactive board, card, and casino-style games to millions of Americans. Operators provide free-to-play experiences where players can always participate without payment, with optional in-game purchases to enhance and extend gameplay,” the SGLA said.
“The SGLA represents operators who, like many US retailers and other businesses … market their digital entertainment offerings using sweepstakes promotions. Our operators follow the same established legal principles used by mainstream brands and, importantly, offer an alternative method of entry that is easily available and accessible,” the group added.
