New York is the latest state to oppose sweepstakes casinos, which are rampant across the US. The Assembly Racing and Wagering Committee has endorsed Assembly Bill 6745, which aims to curb the burgeoning style of online wagering.
Assembly Bill 6745 would also apply to legit casinos and operators, with sweepstakes being banned outright. Those who would try to run a sweepstakes casino in the state will face a fine between $10,000 and $100,000 per violation.
However, fines will be put to good use. The Commercial Gaming Revenue Fund will receive the cash made from fines to fund support programs around gambling.
Last month, company Real Prize pulled out of the state, leaving customers in the lurch with prize redemption. Meanwhile, another trio also bowed out of New York, anticipating the ban on sweepstakes casinos.
What are sweepstakes casinos?
Sweepstakes casinos effectively simulate regular casino games. These can range from slots to poker, but instead of the user paying straight from their own cash, they buy digital currency. This is split into “gold coins” and “sweep coins”, or something similar.
Players can spend the “gold coins” on games for no prizes. “Sweep coins” will then be used for the cash or prize games. These are sold in bundles with minimal restrictions, making it potentially dangerous for those vulnerable to addiction.
States take aim
It isn’t just New York that intends to ban sweepstakes casinos. New Jersey currently has a ban on the table, while Maryland’s bill died due to not making it onto the table in time.
Mississippi’s bill was outright rejected, with California following suit with New York. Louisiana and Pennsylvania have also begun targeting sweepstakes casinos.
In March, New York Senator Joseph P. Addabbo Jr., Chair of the NYS Senate Racing, Gaming, and Wagering Committee, made it known he’s coming for the unregulated casinos. A main problem he cited was the offshore nature of the companies, making it hard to regulate them.
