The Social and Promotional Games Association (SPGA), an advocacy group for sweepstakes games, called out New York legislators for an "ill-conceived" amendment to Bill S5935. The amendment would give the state's gaming commission the power to decide what is and isn't a "dual-currency system".
State Senator Joseph Addabbo Jr.'s Bill S5935 sought to ban all sweepstakes gaming in the state. However, as the SPGA pointed out in March, broadly banning sweepstakes games would make promotional games from McDonald's and Starbucks illegal. New York's response was to let the commission decide on a case-by-case basis.
S5935 Amendment: From Bad To Catastrophic
First introduced in early March by Senator Addabbo Jr., S5935 has been quickly moving through the halls of power in New York. Much to Addabbo's surprise, who told the NY Times in March that his legislation would be "cumbersome and slow of way of dealing with [sweepstakes games]."
The bill has gone through three readings, with only a small amendment. Under the definition for 'online sweepstakes game' reads: "The state gaming commission shall determine what constitutes a dual-currency system pursuant to this paragraph."
It's a clear "get out of jail free" card for state regulators to allow the sweepstakes games they like and those they want to target. And has the SPGA crying foul. "This was already bad legislation. Lawmakers have taken a mess and made it into a catastrophe," read the SPGA's latest press release on NY S5935's amendment.
Sweepstakes Gaming: What's Next?
While the movement of this particular bill points to a step back for the industry, they'll be buoyed by a string of wins across the US.
In New Jersey, the plaintiff voluntarily dropped a RICO lawsuit against several recent legal wins for sweepstakes games in Arkansas, Florida, Maryland, and Mississippi, where anti-sweeps bills were defeated.
The SPGA hopes New York will do the same for Addebbo's bill S5935. However, with some of the toughest gambling laws, such as a 51% tax rate on gross gaming revenues (GGR), it's hard to see the Empire State reverse course.
