SPGA Slams New York Amendment to Sweepstakes Ban Bill

New York lawmakers are advancing a controversial legislative push to ban online sweepstakes games, prompting strong criticism from the Social and Promotional Games Association (SPGA), which called recent amendments to the Senate’s version of the bill “catastrophic.”

Expanded Definitions Stir Industry Backlash

The legislation in question, Senate Bill S5935A —introduced by Sen. Joseph Addabbo—seeks to outlaw online sweepstakes-style games by redefining their structure and restricting entities involved in their promotion. Specifically, the bill prohibits any online contest or promotion that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalents.” These provisions target a broad range of digital sweepstakes, including those simulating casino games, video poker, keno, and sports betting.

Initially introduced in March 2025, the bill passed through committee stages and recently moved to its third reading, marking the final opportunity for further amendments before a full vote. A companion bill, Assembly Bill 6745—proposed by Assemblymember Carrie Woerner—contains identical language and passed the Assembly Racing and Wagering Committee following a unanimous vote. Both measures aim to prohibit sweepstakes-style online games and extend liability to suppliers, financial institutions, content providers, investors, and media affiliates.

Entities found in violation may face fines ranging from $10,000 to $100,000 per instance, as well as loss or ineligibility for gaming licenses. Enforcement authority would fall to the New York State Gaming Commission, state police, and Attorney General. All collected fines would be directed to the Commercial Gaming Revenue Fund, supporting problem gambling education and treatment.

Amendment Shifts Burden to Gaming Commission

Facing mounting criticism, lawmakers introduced a key amendment to S5935A, changing the definition of a “dual-currency system.” Rather than specifying the definition in the bill, legislators now defer the responsibility to the New York State Gaming Commission. According to the SPGA, this amendment does not resolve the concerns raised by stakeholders but instead adds further uncertainty.

“This amendment is a clear acknowledgment that this anti-business bill needlessly threatens New York’s economy,” stated an SPGA spokesperson. “But this amendment doesn’t fix anything. It’s a political patch meant to quiet critics without solving the underlying problem.”

The SPGA contends that the vague delegation to the Gaming Commission could put marketing platforms, loyalty programs, and mobile gaming operators at risk. The association argues that without a clear, legally defined framework, the bill opens the door to overreach and inconsistent enforcement.

Broader Implications and National Trend

The SPGA also warned that the bill’s structure disregards necessary consultation with industry and legal professionals. “Rather than collaborating with stakeholders and legal experts to craft thoughtful regulation, New York continues to advance a bill that threatens innovation and dictates to New Yorkers what games they can and can’t play on their phones,” the organization stated in a public response.

Notably, the issue has gained traction in other U.S. jurisdictions. Louisiana recently passed its own version of anti-sweepstakes legislation, with Senate Bill 181 advancing unanimously through the state Senate. The bill targets promotional sweepstakes and unlicensed casino-style games, authorizing enforcement by the Louisiana Gaming Control Board and Department of Public Safety and Corrections. Montana is also close to enacting similar restrictions with Senate Bill 555, which awaits gubernatorial approval.

With lawmakers in Illinois, Maryland, and Connecticut reportedly exploring similar measures, the SPGA cautioned that states considering such legislation should observe New York’s challenges. “Lawmakers wouldn’t be amending the bill if it didn’t need amending,” the SPGA noted. “New York legislators are publicly admitting the bill was flawed, and other states like Louisiana should take note before making the same mistake.”

Despite its criticisms, the SPGA expressed a willingness to engage with legislators to build a balanced regulatory framework. It continues to advocate for consumer protections that do not hinder technological innovation or criminalize digital promotions used by well-known brands like McDonald’s, Starbucks, and Marriott.

Source:

SPGA Responds to New York Senate Bill Amendment: “The Risk is Real, and Lawmakers Know It”, thespga.org, May 1, 2025