New York senator introduces bill to ban online sweepstake casinos
The bill proposes fines for operators or affiliates who offer or accept revenue from prohibited games.
US.- New York senator Joseph Addabbo has introduced S5935, which would explicitly prohibit online sweepstakes casinos from operating in the state. The bill proposes fines for operators or affiliates who offer or accept revenue from prohibited games.
The proposed legislation states that “it shall be unlawful for any applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider or media affiliate to support the operation, conduct or promotion of sweepstakes games within the state of New York.”
The bills sets penalties of a minimum of $10,000 to a maximum of $100,000 for an operator or affiliate offering a sweepstakes casino game in the state, or accepting revenues from a sweepstakes casino company. If the bill is approved, the New York State Gaming Commission or New York State Attorney General would be required to uphold the law.
Addabbo introduced the measure on March 4 and it is now with the Senate Racing, Gaming and Wagering Committee, which he chairs.
Addabbo’s bill provides the following definition of an online sweepstakes game: “Any game, contest, or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal, or similar access device, that utilises a dual-currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or any chance to win any prize, award, cash or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games including but not limited to blackjack, roulette, craps, and poker, lottery games including but not limited to draw games, instant win games, keno, and bingo, and sports wagering.”
Earlier this year, senator Addabbo introduced SB 2614, which would legalise online lottery sales and poker as well as casino games. Under the bill, licensed operators would be authorised to offer table games, slot games, peer-to-peer poker and live dealer games. Live dealer games would need to be conducted in a live gaming studio located in New York.
The legislation proposes a one-time license fee of $2m for operators. Independent contractors providing a mobile interactive gaming platform and displaying their brand would be required to pay a one-time fee of $10m. Each interactive gaming licensee would be limited to offering a single branded skin.
The bill calls for a 33.5 per cent tax on gross gaming revenue and proposes a $2,500 annual limit on credit card funding. When an account holder’s lifetime deposits surpass $2,500, the licensee would be required to suspend wagering until it receives additional disclosures about problem gambling resources.
