Senator Joseph P. Addabbo, Jr., Chair of the NYS Senate Racing, Gaming, and Wagering Committee has seen his bill to prohibit online sweepstakes games and revenue pass unopposed at the Senate Racing, Gaming and Wagering Committee.
“One of my primary objectives as Gaming chair is ensuring New Yorkers are protected from gambling operations that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators,” said Addabbo on a podcast two weeks ago ahead of today’s session.
“Many sweepstakes’ operators are located offshore making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole,” he added.
The Senator explained that sweepstakes operators are allowing individuals to pay for virtual coins and win more coins that can then be later redeemed for cash prizes. “The use of money to play a game and win more money is simple gambling and should be safely regulated,” Addabbo noted.
The bill, if eventually passed by lawmakers will establish fines of up to $100,000 per violation and the potential loss of an organization’s gaming license and “will prohibit financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, or media affiliates from supporting such games”, according to a post by Howard Glaser, Global Head of Government Affairs and Legislative Counsel at Light & Wonder on LinkedIn.
Justification for the bill in official documents states, “This legislation clarifies that online real money “sweepstakes casinos” constitutes illegal gambling and establishes penalties for operating or facilitating unregulated online gambling.
Online real money “sweepstakes casinos” have recently become widely available in New York over the internet on mobile devices and personal computers, including to minors. These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject. These products and operations are untaxed and unregulated. They present unfair competition to the state’s legal, highly regulated, and economically important casinos.
The legislation will provide a powerful deterrent to offshore and domestic illegal online gaming operators from entering the state and/or to withdraw from the state and will provide robust tools to the Gaming Commission and the Attorney’s General Office to enforce the law.”
The bill will now pass to the Senate floor in its next stage.
Featured image courtesy of: www.nysenate.gov
