New York’s Bold Initiative to Prevent Gambling Addiction

USA – March 28, 2025 | www.zonadeazar.com Sweepstakes-based casino games in New York are under scrutiny after a Senate committee unanimously voted to ban them.

The New York State Senate Committee on Racing, Gaming, and Wagering has advanced Bill SB5935. If approved, this initiative would prohibit online sweepstakes casino games in New York, which allow players to use a special type of currency to win prizes or cash in casino-like games.

The bill also affects other entities, such as banks and companies that facilitate payment processing or promote these games, preventing them from supporting the operation of sweepstakes casino games in New York.

Penalties under this legislation could range from ten thousand to one hundred thousand dollars. This measure is significant as the online gaming sector has faced criticism and scrutiny in recent months, with opponents arguing that these games operate in a legal gray area.

What Are Sweepstakes Sites?

Sweepstakes sites operate under a structure known as dual-currency gaming. These platforms offer virtual coins that users can later redeem for cash prizes.

Currently, this setup has allowed sweepstakes to take place without directly violating existing laws. Sweepstakes casinos exploit a legal loophole by adhering to the rule that “no purchase is necessary,” a hallmark of sweepstakes rather than lotteries. Players purchase gold coins with no real monetary value, which automatically grants them sweepstakes credits. This pseudo-money is then used for betting.

The Case of New Jersey

Meanwhile, in the state of New Jersey, legislators have shifted their stance on social casino sweepstakes. Initially, a bill (AB 5196) was introduced to regulate these games, requiring them to obtain licenses, follow rules, and pay taxes.

Online Casinos

However, a new bill (AB 5447) has now been introduced to ban them entirely and permanently. Connecticut regulators have also recently taken action against a sweepstakes casino.

As can be seen, New York’s proposed changes align with broader concerns in many U.S. states regarding the legality of online sweepstakes.

Editor: @_fonta | www.zonadeazar.com