New York State Senator Joseph Addabbo has long been an advocate of regulated iGaming, but now he is using the ban on online sweepstakes casinos in the state as a rationale to introduce it.
On December 5, Governor Kathy Hochul signed into law Senate Bill 5935, sponsored by Addabbo, which makes it illegal to operate or promote online sweepstakes games in the Empire State.
Online sweepstakes games will not be allowed to be supported by financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers and media affiliates. The New York State Gaming Commission and the Attorney General also can impose penalties on any offenders, including the potential loss of a gaming licence or eligibility for one.
A forerunner to iGaming
Addabbo says the only type of online gambling permitted in New York is online sports betting, but feels the ban on online sweepstakes casinos should be a stepping stone for iGaming to be legislated on.
“Signing my bill into law is not the end of the conversation, but rather a necessary step toward responsible modernization of New York’s online gaming landscape,” said Addabbo.
“New York is sending a strong message that if online gaming is going to be legal in this state, it has to be legal and well regulated and developed with strong consumer protections.”
Addabbo also believes New York is in a strong position to engage intelligent and complete discussions regarding online gambling regulation with sweepstakes casinos banned and the land-based casino licensing process winding down.
“With the downstate casino licensing process now in play and the illegal sweepstakes loophole now closed, the state is in a better position to have serious conversations about regulating and perhaps legalizing iGaming soon enough, perhaps as part of the next budget process,” continued Addabbo.
“My priorities are safety, combating problem gambling, producing needed, significant revenue and keeping New York competitive with neighboring states.”
New York’s ban on online contests follows similar bans in California, Connecticut, Montana, Nevada and New Jersey.
But iGaming is only authorized in seven US states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
It remains to be seen whether any other states will join that list, but Addabbo will be hoping New York can get into the iGaming industry soon.
