New York lawmakers became the fifth legislature to ban sweepstakes casino operators.
The New York House approved Sen. Joseph Addabbo’s S 5935 Tuesday evening, just ahead of the last day of the session Wednesday. Addabbo’s bill bans sweepstakes casino operators in the Empire State.
It is the fifth state legislature to pass such legislation; however, Louisiana Gov. Jeff Landry vetoed one of the bills. New York’s passage also occurred the same day as Mississippi and Louisiana regulators sent more than 50 cease-and-desist letters to sweepstakes operators.
New York sweepstakes casino ban
Prior to the session, Addabbo told LSR the operators had “gotten around a loophole.” There were sweepstakes ban bills introduced in both chambers, but S 5935 took flight first, passing the Senate on June 11.
Even before Tuesday’s passage, Attorney General Letitia James sent 26 cease-and-desist orders to operators.
That was after sweeps giant VGW had already pulled out of the state.
Sweepstakes casino organizations express displeasure
The Social and Promotional Games Association, which consists of many sweepstakes operators, is urging Gov. Kathy Hochul to veto the bill.
Likewise, the Social Gaming Leadership Alliance, launched by VGW, said it was “disappointed by the passage of S 5935.”
“By advancing legislation that was drafted based on fundamental misunderstanding of our industry and aggressively promoted by stakeholders with a competitive interest in shutting down these platforms, New York residents could lose access to popular, free-to-play online games enjoyed by millions. Of particular concern, the discretionary powers handed to the Gaming Commission under this bill could restrict use of a popular marketing tool, hurting businesses and the New York economy in ways lawmakers did not intend,” SGLA Executive Director Jeff Duncan said.
“Legislators raised legitimate questions about how this law would be enforced, whether federal law takes priority, and potential unintended consequences for widespread promotional activities – questions that remain unanswered because the bill was rushed through too quickly. By blurring the line between lawful sweepstakes promotions and illegal gambling, this legislation threatens a vibrant digital-entertainment sector while offering players no safer alternatives.”
Louisiana takes action
Last week, Landry vetoed his legislature’s attempt to ban sweepstakes operators through legislation. Landry said regulators did not need the bill to effectively enforce its rules.
The Louisiana Gaming Control Board followed through this week. It sent more than 40 cease-and-desist letters to sweepstakes and other illegal operators on Tuesday. Along with the sweeps operators, it also noted it included Harp Media, which operates offshore sportsbook giant Bovada.
“These actions send a clear message,” LGCB Chair Christopher Hebert said in a release. “Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry. We will continue to use every enforcement tool available to protect the public and uphold the law.”
Mississippi, too
Earlier this legislative session, the Mississippi Senate was the first chamber in the US to pass a sweepstakes ban. However, the legislation became entangled with an unsuccessful attempt to expand sports betting online.
On Tuesday, the Mississippi Gaming Commission issued 10 cease-and-desist letters to illegal online gambling operators. It noted some sites offer free play, “if there is an opportunity for the player to provide consideration and win something of value, and an element of chance exists in the game outcome, it is gaming under Mississippi law.”
“Our laws are clear that casino style gaming and sports wagering are not allowed online in Mississippi outside of a licensed casino,” MGC Executive Director Jay McDaniel said in a release. “The MGC will aggressively pursue both domestic and offshore operators, and the MGC is currently providing criminal case files to both our state and federal law enforcement partners and requesting prosecution.”
