New York Senator Addabbo bans online sweepstakes – G3 Newswire
Summary
New York State Senator Joseph P. Addabbo Jr. (chair of the Senate Racing, Gaming and Wagering Committee) has had his bill S.5935A signed into law as Chapter 605, banning dual-currency online sweepstakes casinos that effectively operate as unregulated online casinos in New York.
The law makes it illegal to operate, promote or profit from sweepstakes-style games that offer cash or cash-equivalent prizes without state authorisation. It gives the New York State Gaming Commission and the Attorney General authority to close down operators and impose fines of $10,000 to $100,000 per violation. Sweepstakes formats that do not offer cash-redeemable rewards remain unaffected.
Several operators reportedly stopped servicing New Yorkers immediately after the bill was signed. Addabbo frames the law as consumer-protection policy and a step towards considered modernisation of online gaming in New York, potentially opening the door to regulated iGaming in future budget conversations.
Key Points
- S.5935A (Chapter 605) outlaws dual-currency online sweepstakes casinos that pay out cash or cash-equivalent prizes in New York.
- The law empowers the New York State Gaming Commission and the Attorney General to enforce the ban, including fines from $10,000 to $100,000 per violation.
- Operators that mimic casino games but avoid regulation have proliferated; the law targets those unregulated, consumer-risk platforms.
- Sweepstakes games without cash-redeemable rewards are not affected by the ban.
- Several sweepstakes operators ceased offering services to New Yorkers immediately after the law was signed, showing quick regulatory impact.
- Addabbo positions the move as consumer protection and a precursor to potential legal, regulated iGaming in New York.
Context and Relevance
This is a noteworthy regulatory development for the US gaming sector. New York joins states such as New Jersey, California and Nevada that have restricted sweepstakes-style gambling to protect consumers and close grey-market loopholes. For operators, payment processors, affiliates and compliance teams, the law removes a previously exploited route to offer casino-like products without oversight. For regulators and public policy makers, it clarifies enforcement powers and sets the stage for discussions about legalising and regulating online casino gaming in New York in a controlled way.
Why should I read this?
Quick and blunt: if you work in gaming, payments, compliance, or run sweepstakes-style sites — this changes the game in New York. It shuts down a widespread grey market, hands regulators clear enforcement tools and signals that properly regulated iGaming could be next. Saves you the hassle of digging through the law yourself — we flagged the bits that matter.
Source
Source: https://g3newswire.com/new-york-senator-addabbo-bans-online-sweepstakes/
