NY Bill Limiting Online Sweepstakes Advances

Across the nation, lawmakers are starting to take a serious look at Sweepstakes Casinos. In some states, they don't like what they see, which causes some lawmakers to create legislation either limiting such casinos or downright banning them. This is happening in New York where a new Senate bill speaking directly to the future of sweepstakes casino is on the way to the Senate floor.

What is a Sweepstakes Casino?

A sweepstakes Casino is an online casino option that purports to not allow gambling. Instead, they allow customers to earn or purchase "sweeps coins," which can be used to participate in designated sweepstakes gambling events. Note: Sweeps coins are virtual monetary instruments somewhat similar to cryptocurrency though they can only be used to play casino games on the issuing iGaming sites.

It's noteworthy that while sweepstakes casinos state gambling is not permitted, sweeps coins can be redeemed for prizes, including cash.

Why is New York Taking Issue With Sweepstakes Casinos?

Leading the war against sweepstakes casinos in New York is State Senator Joseph Addabbo. Online casino gambling advocates in New York will note is the same Senator who has been pushing for the legalization of iGaming access in the state for the last three (3) years to no avail.

When he presented SB5935 to the NY Racing, Gaming, and Wagering Committee just a few weeks ago, he intended to ban sweepstakes casinos from operating in New York. His argument is based on the idea that virtual currencies have not been approved as legitimate means of exchange within the state's physical and financial boundaries. He also opposes the notion gambling is not being allowed, which is clearly not the case if players can redeem coins for cash.

In addition to those concerns, New York has been struggling to get approval for downstate retail casinos. Lawmakers have shown very little interest in allowing online casino gambling access of any kind until the retail casino issues are resolved.

As head of the NY Racing, Gaming, and Wagering Committee, Sen. Addabbo had little trouble convincing other committee members to vote for his bill. The vote was unanimous with 4 of the 7 committee members not voting. Regardless, the bill will now head to the Senate floor for discussion and a possible vote at a later date.

New York is Not Alone in the Sweepstakes Casino Battle

Currently, some form of sweepstakes casino access is available in 40+ states. However, lawmakers in other states are starting to take action against these casinos for the same reasons tied to Sen. Addabbo.

Aside from New York, at least five (5) other states are eyeing restrictive sweepstakes casino legislation. That includes Mississippi and Maryland where actual bills banning casino access are advancing quickly through the state legislatures. Only Nevada seems willing to let these casinos operate as long as they secure proper gaming licensing.

This is an issue that is gaining steam and warrants extra attention in the coming weeks and months.