【Platincasino Einzahlung funktioniert nicht】New York Bill to Ban Sweepstakes Casinos Gains Momentum

New York is the latest jurisdiction in the U.S. to make progress on the ban of sweepstakes gambling operations.

This week, the New York Senate Committee unanimously passed a bill that would prohibit such offerings in the Empire State. The legislation will now move for review in the Senate.

On Tuesday, 18 March 2025, the New York Senate Racing, Gaming, and Wagering Committee approved bill S5935, advancing it to the Senate floor. Although there is no hearing date for the legislation yet, this marks an important step in New York’s efforts to address the controversial sweepstakes casino and sports betting sites.

Sen. Joseph Addabbo, who is also chairman of the committee, submitted Bill S5935. If enacted, the legislation would ban online sweepstakes games and revenue from illegal markets. It would also impose penalties and introduce enforcement provisions.

Meanwhile, State Assemblywoman Carrie Woerner, who currently serves as Chair of the Assembly Small Business Committee, presented a companion bill in the other chamber. However, her legislation has not progressed beyond that committee.

Targeting Social Casinos

Addabbo’s legislation takes aim at the dual-currency websites that several other U.S. jurisdictions are currently addressing. These so-called sweepstakes casino websites offer games of chance and advertise these casino-style games as regulated.

However, unlike traditional online casinos, social platforms rely on virtual currency. Players can acquire coins for free, but primarily, these credits must be purchased with real money.

Once bought, users can utilise the coins to play various slots and table games and even wager them on sporting events. Winnings from these games can then be converted into cash or other prizes.

As they do not provide traditional gambling, these sweepstakes casinos exploit a legal loophole to circumvent the iGaming laws in various regions. However, many jurisdictions in the U.S. are responding by tightening gambling regulations against these sites.

Addabbo’s bill targets financial institutions, payment processors, geolocation operators, gaming providers, betting platforms, and media affiliates, making it unlawful for those businesses to support sweepstakes brands.

Fining Those Who Breach the Rules

Furthermore, if enacted, S5935 would also impose fines ranging from £10,000 to £100,000 per violation. However, violators would face even more severe consequences, including the loss of their gambling licence in the Empire State. The New York State Gaming Commission, the Attorney General’s Office, and the police would be authorised to enforce the law.

Addabbo’s bill states the following on the topic of sweepstakes 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.”

The legislation also asserts that these social casino products and operations are untaxed and unregulated. Consequently, they do not contribute to New York’s economy in the same way that licensed online sportsbooks do. Lastly, the bill reads that the sweepstakes operations are unfair competition to the legal and regulated casino products.

The official date for the Senate hearing of the bill has yet to be chosen determined.

SPGA Criticizes New York

The Social and Promotional Games Association, which is the sweepstakes casino trade body, doesn’t agree with the Empire State. The association labelled the legislation as a ‘blatant overreach.’

A representative of SPGA said the following on the topic of New York’s efforts to ban sweepstakes platforms:

“This legislation recklessly mischaracterises sweepstakes gaming and threatens legitimate businesses with unnecessary and harmful regulation. New York lawmakers are dangerously conflating legal promotional sweepstakes with gambling, creating a broad and misguided precedent that could devastate industries far beyond social gaming.”

Maryland Takes Action Too

As mentioned, other U.S. jurisdictions, including Maryland, are also seeking to address the growing popularity of sweepstakes casinos. Just last week, the Old Line State advanced a bill that would ban sweepstakes gambling within its borders.

The Maryland Senate Budget and Taxation Committee passed SB 860 unanimously, 13-0, indicating significant support for the legislation. The bill is sponsored by Sen. Paul D. Corderman.

Meanwhile, Delegate Eric Ebersole filed a supporting bill, HB 1140. This one is currently under review in the House Ways and Means Committee.

If Maryland passes and enacts the legislation, the two bills will ban online sweepstakes gambling in the state. Thus, the Maryland State Lottery and Gaming Control Commission would have the authority to refuse licenses for operators offering sweepstakes products.

Like New York’s bill, the Old Line State would also impose monetary fines on operators violating the new regulation. These penalties would be between US$10,000 and US$100,000. But that’s not all. Those found guilty of running sweepstakes offerings would also face potential imprisonment of up to three years.

After unanimously passing SB 860, the bill has been transferred to the House, where it will be assessed and reviewed on March 20, 2025.