A bill targeting online sweepstakes-style games is moving forward in New York. Assembly Bill 6745, sponsored by Assembly member Carrie Woerner, passed the state’s Assembly Racing and Wagering Committee yesterday in a public session. The bill would amend New York’s racing, parimutuel wagering and breeding laws to specifically prohibit online sweepstakes games. These are defined as digital contests or promotions that use a two-currency model where players can convert virtual currency into real cash prizes or equivalents. Under A6745, any online game that looks like a casino game, video poker, slot games, bingo, lottery-style draws, sports betting, keno or instant-win games would be banned. The law would apply not just to the operators of these games but also to affiliated parties, licensed gaming operators, software providers, financial transaction processors, geo-location services, staff, investors and board members within the state.

Fines for violating this law would be severe. Individuals or entities found in violation could be fined $10,000 to $100,000 per infraction. Gaming licenses could be revoked for non-compliance. Enforcement would be handled by the New York State Gaming Commission, the Attorney General’s office and the State Police who could conduct investigations and issue cease-and-desist orders. Any monies collected under this law would go into the Commercial Gaming Revenue Fund. The money would be used to fund educational initiatives and treatment programs for problem gambling in New York. Introduced in March, the bill was sent to the Assembly Racing and Wagering Committee where it was amended and approved. It will now go to the Assembly’s Codes Committee.

Senate Companion to Online Sweepstakes Ban Moves in New York

In another move to crack down on online sweepstakes, State Senator Joseph Addabbo introduced Senate Bill 5935 in March, which mirrors the language and purpose of Assembly Bill A6745. Like A6745, SB 5935 targets sweepstakes game operators and their suppliers and affiliates. This week the Senate bill had its third reading, the last chance for any amendments before a potential vote on the Senate floor. Although the bill was first brought to the floor in March, nothing had happened until this week. With the New York State Legislature’s session ending June 12, they have only about a month to move SB 5935 and A6745 forward.

States Intensify Efforts to Outlaw Online Sweepstakes Operations

New York isn’t the only state going after online sweepstakes-style gambling. In Louisiana, Senator Adam Bass introduced Senate Bill 181 last month which would prohibit the operation and promotion of online sweepstakes across the state. The bill also targets online platforms offering casino-like games, sports betting and digital lottery-style play. Speaking to his fellow legislators before the bill passed, Bass said SB 181 is to combat the flood of illegal online gambling sites he says are preying on Louisiana residents. If passed, the bill would give enforcement authority to both the Louisiana Gaming Control Board and the Department of Public Safety and Corrections. Those found in violation could face fines of at least $10,000 and up to 5 years in prison.

SB 181 passed the Louisiana Senate unanimously this week with several amendments. It now heads to the House. In Montana, a similar bill has made progress. Senate Bill 555 which bans sweepstakes based gambling has passed both chambers of the legislature. If signed by Governor Greg Gianforte Montana will be the first state to have a specific law against sweepstakes casinos. The bill also updates Montana’s gaming laws to define what constitutes an illegal sweepstakes system. Other states are also looking to crack down. Illinois, Maryland and Connecticut are considering bills to restrict or eliminate online sweepstakes games. Not all have been successful, a proposed ban failed to move forward in Mississippi last month.