A New York iGaming bill is once again on the table for 2025, and the bill’s key sponsor is looking to exclude sweepstakes casinos from joining the party.
Senator Joseph P. Addabbo, Jr., Chair of the NYS Senate Racing, Gaming, and Wagering Committee, the main political champion for passing comprehensive iGaming legislation in the state of New York, is back at it. And this time around, sweepstakes casinos won’t be ignored.
With the precipitous rise of sweeps gaming operators and their advertising tactics over the last year, they are squarely on the radar of many state legislators.
Addabbo is looking to join a growing number of states positioning themselves squarely against sweepstakes casinos, or at least those who have served NY customers to date.
‘I want to act to address this existing loophole’
Addabbo made his intentions clear on a recent podcast with City and State around the topic of gaming in the state of New York. He didn’t mince words when discussing his stance on sweepstakes casinos.
“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,” he said.
He added: “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.”
The loophole Addabbo refers to is the dual-currency system employed by sweeps casinos, where players can purchase Gold Coins packages that come with “bonus” or “free” Sweeps Coins, which can eventually be redeemed for real money. The fact these sites have alternate modes of entry (AMOE) and don’t technically require a deposit to play are the core features that have allowed them to continue and proliferate under sweepstakes law in most states.
Enforcement against them has been piecemeal, so far, but more states are beginning to shape their positions. Several states, including Michigan, Connecticut, Massachusetts, Delaware, and now Maryland have sent sweeps operators cease-and-desist letters. New Jersey is potentially taking a different approach, as a recently filed bill would create regulation for sweeps sites.
Bad actor clause effectively bans sweeps sites
In the same podcast, Addabbo stated his intention to exclude sweeps sites.
“To close this loophole, I will work to ban or incorporate Sweepstakes Casinos in the state, akin to current laws in Michigan, Idaho, and Washington, and I will push for iGaming as a safe, effective alternative for online casino enthusiasts,” Addabbo explained.
The new NY iGaming and iLottery bill, SB 2614, is strikingly similar to the one filed last year, but with some adjustments. Significantly, the bill includes job protections to the NY Hotel & Gaming Trades Council and extensive responsible gambling and problem gaming support, limits, and protections.
Daniel Wallach, U.S. gaming law and sports betting attorney, called it “a good template for other states” on LinkedIn.
Addressing the sweeps question, a provision in the proposed bill explicitly states that: “An unlicensed entity offering games or contests that require a license or temporary permit issued by the commission under Article 13 or 14 of this chapter within the previous three years of the effective date of this article shall be ineligible to receive an interactive gaming license.”
This clause is clearly intended as a measure to exclude any sweepstakes gaming operator that has offered services within NY in the three years leading up to the bill passing. If accepted as is, this bad actor clause would effectively ban any sweeps operator that has already launched, as most if not all do offer online games in New York.
Addabbo doubles down on the gambling age issue
Shortly after filing the new iGaming bill, Addabbo filed a bill to raise the legal gambling age in New York from 18 to 21.
First reported by Wallach on LinkedIn, SB 2610 would amend current gambling law to exclude persons under 21 years of age from engaging in gambling activities approved by the state.
What does this have to do with a sweepstakes ban in New York?
Maybe it would have no direct impact. But considering sweeps casinos generally include in their terms and conditions a minimum age of 18 years old (unless otherwise specified in the state), this additional bill could also reduce any glimmer of hope a sweeps operator might have of snagging a coveted NY internet gaming license.