Summary
- New York becomes the latest US state to outlaw sweepstakes, continuing sector crackdown
- Maine and Indiana are similarly debating whether to outlaw the sector as well
- Sweepstakes online casinos are under significant pressure nationwide, with the most prominent trade group calling for regulation, not bans
Sweepstakes casinos have been in legislators’ crosshairs for the longest time now, and New York delivered the latest blow against the sector on Friday, after Gov. Kathy Hochul signed S 5935 into law on December 5.
New York kills sweepstakes casinos with the governor’s grace
The legislation is simple enough, specifically targeting the use of dual currency in online casinos and games of chance, which is the system deployed by sweepstakes casinos. The decision naturally prompted swift opposition from the Social Gaming Leadership Alliance, which urged lawmakers to regulate and not ban a well-established sector. SGLA Executive Director Jeff Duncan had this to add: Players, operators, and voters all made their position clear: they didn’t want a ban on this popular, safe form of entertainment. Gov. Hochul had the opportunity to protect consumer choice and New York’s economic interests. Instead, she chose a short-sighted path, closing the door on choice, innovation, and hundreds of millions in economic activity. New York is hardly the only state to have moved against the sector this year, with California also following a similar path and outlawing it. At the same time, more anti-sweepstakes action is creeping up in other jurisdictions with draft bills pitched in both Indiana and Maine. Maine introduced LD 2007, backed by Sen. Craig Hickman, just last week, and is now looking to outlaw entities that offer sweepstakes casino products and fine them anything between $10,000 and $100,000, with any contributions collected this way going to a special fund designated to tackle gambling-related problems. The argument against the sweepstakes sector runs familiar – opponents argue that they are an unauthorized form of online gambling, with players specifically playing to win real money.
