Lawmakers in New York are advancing a bill that aims to ban online sweepstakes games
Assembly Bill 6745 was approved on Wednesday by the state’s Assembly Racing and Wagering Committee following a unanimous vote during a public hearing. The measure, proposed by Assemblymember Carrie Woerner, defines an online sweepstakes game as an online contest or promotion that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash price, cash award or cash equivalents.”
Woerner’s bill proposes amendments to New York’s racing, parimutuel wagering, and breeding law to ban online sweepstakes games. A6745 bans online sweepstakes games that simulate casino-style games, video poker, bingo, lottery games, or sports betting. Its ban on sweep-style lottery games applies to draw contests, keno and instant win games.
Under A6745, the restriction of online sweepstakes games applies to licensed gaming entities in the state along with suppliers, payment processors, geolocation providers, gaming employees, investors and board members.
Entities or patrons that violate A6745’s standards are subject to a fine between $10,000 and $100,000 for each violation. Violators are also subject to gaming license revocation.
The measure gives New York’s gaming commission, state police and Attorney General the authority to conduct investigations and issue cease and desist orders to entities and patrons that fail to adhere to A6756. Under the bill, all fines that the state of New York collects from banned online sweepstakes games are to be deposited into the Commercial Gaming Revenue Fund to support problem gambling education and treatment programs.
A6745 was introduced in March and immediately referred to the Assembly Racing and Wagering Committee where it underwent amendments before its approval this week.
The measure is now heading to the Standing Committee on Codes for consideration.
Senate version of anti-sweeps measure
Sen. Joseph Addabbo filed Senate Bill 5935 in March as a measure that also bans sweepstakes operators and suppliers. The piece of legislation includes the exact same language as the Assembly’s version of the bill, A6745.
Earlier this week, SB 5935 advanced to its third reading—the last opportunity for the measure to be amended before a final vote. The bill made it to the Senate floor in March but had no substantial action until yesterday.
Lawmakers have just over a month to make progress with SB 5935 and A6745 as New York’s legislative session adjourns June 12.
New York lawmakers add to anti-sweepstakes legislation
Last month, Louisiana Sen. Adam Bass filed Senate Bill 181 as a measure that proposes a ban on the operation and promotion of online sweepstakes in the state. Bass’ proposed measure also extends to online casino-style gaming, lottery gaming and sports betting.
“Senate Bill 181 is legislation to combat the proliferation of illegal online casinos, which are ripping off Louisiana citizens,” said Bass to Senate members ahead of its approval.
Under SB 181, the Louisiana Gaming Control Board and the Department of Public Safety and Corrections have the authority to investigate any violation and pursue enforcement. Violators of the bill face at least a $10,000 fine and up to five years in prison.
Earlier this week, the Louisiana Senate voted unanimously in favor of SB 181 after the measure underwent a series of amendments. The bill will now head to the House.
An anti-sweeps bill in Montana is also making process as Senate Bill 555 was approved by both the House and Senate. If signed by Gov. Greg Gianforte, Montana will be the first state to pass a law intended to ban the operation of sweepstakes casinos.
SB 555 amends Montana gaming law to define what illegal sweepstakes entail.
Lawmakers in Illinois, Maryland and Connecticut are also considering bans on sweepstakes games. Earlier this month, an anti-sweeps bill died in Mississippi.