New York’s Latest Gambling News: A Ban on Dual-Currency Sweepstakes
It was a busy week for gambling news in New York, with several significant developments taking place. One of the most notable announcements was the ban on dual-currency sweepstakes gaming, signed into law by Governor Kathy Hochul. This move makes New York the sixth state to prohibit this type of gaming.
What is Dual-Currency Sweepstakes Gaming?
Dual-currency sweepstakes gaming refers to a type of gaming that uses a second currency, such as sweepstakes coins, but still offers cash prize options. These games have a similar look and feel to casino-style gaming and sports betting. The ban aims to remove these games from the state, as they are not regulated and do not generate tax revenue.
The Legislation Behind the Ban
The legislation, S5935A, was introduced by Senator Joseph Addabbo Jr. in March and had significant legislative support. It passed the Senate with a 57-2 vote in June and the State Assembly with a unanimous 141-0 vote. The bill prohibits any sweepstakes games that award cash prizes or cash equivalents, but allows games that do not offer these types of prizes to continue operating.
Consequences for Non-Compliance
Any gaming operators or affiliates that offer dual-currency sweepstakes gaming in New York will face significant fines. The minimum fine is $10,000, and the maximum fine is $100,000. This applies to both operators that offer the games and those that accept revenue from them.
Reaction from the Social Gaming Leadership Alliance
The Social Gaming Leadership Alliance (SGLA) spoke out against the ban, stating that it will cost the state hundreds of millions of dollars in economic activity and potential revenue. The SGLA notes that Social Plus games contributed over $230 million to New York’s economy in 2024 and could generate $80 million in annual state revenue under a regulatory framework.
A Step Towards Online Casinos in New York?
The ban on dual-currency sweepstakes gaming may be a sign that New York is moving closer to legalizing online casinos. New Jersey and Connecticut, which have both banned dual-currency sweepstakes games, have already legalized online casinos. Online casinos have generated significant tax revenue in the seven states where they are legal, and New York could potentially add over $1 billion in annual tax revenue by legalizing them.
Conclusion
In conclusion, the ban on dual-currency sweepstakes gaming in New York is a significant development in the state’s gambling landscape. While it may have negative consequences for some gaming operators, it could also be a step towards the legalization of online casinos in the state. As New York continues to expand its gambling footprint, it will be interesting to see how the state navigates the complex world of online gaming and regulates these types of activities to generate revenue and protect consumers.
