Massive Sweepstakes Exodus From New York as McLuck, RealPrize, Zula, Others Bail

Senator Joseph Addabbo, the Chair of the New York State Senate Racing, Gaming, and Wagering Committee, has made it a mission to rid the Empire State of sweepstakes casinos since the start of this year.

“One of my primary objectives as Gaming chair is ensuring New Yorkers are protected from gambling operations that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators,” stated Addabbo. “Many sweepstakes' operators are located offshore making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole,” Addabbo added. The Senator expressed that the sweepstakes operators are allowing individuals to pay for virtual coins and win more coins that can be redeemed for cash prizes. “The use of money to play a game and win more money is simple gambling and should be safely regulated,” Addabbo said.

The bill to ban sweepstakes casinos (S5935) is currently working its way through the NY Senate, having been filed at the start of March. The counterpart bill in the Assembly, A6745, is also making its rounds.

"When individuals play Sweepstakes Coins games, they can win more, and when they accumulate a required minimum amount of Sweepstakes Coins, they can be redeemed for cash prizes. The process of turning your winnings into prizes like gift cards or even cash prizes can differ from site to site but often involves a similar path. Ultimately, individuals are spending money to purchase coins in exchange for a prize.

“To close this loophole, I will work to ban or incorporate Sweepstakes Casinos in the state, akin to current laws in Michigan, Idaho, and Washington, and I will push for iGaming as a safe, effective alternative for online casino enthusiasts,” Addabbo explained. “By addressing the Sweepstakes Casinos issue and allowing a regulated iGaming casino option, we are demonstrating our commitment to protecting New Yorkers, dealing with gaming addiction, while adding tax revenue beneficial to all state residents,” Addabbo explained. “Without an option for safe, regulated online gaming, many individuals will fall victim to sweepstakes casinos that entice customers through free play advertising with the potential for prizes through the purchase of gold coins,” added Addabbo. “I encourage my colleagues and the Governor to take action against unregulated sweepstakes casinos, while reconsidering the benefits of allowing legal iGaming operators to provide sanctioned services in a popular and ever-growing industry,” concluded Addabbo.

This week, we learned that a number of sweepstakes casinos have indeed begun to bail.  McLuck, Hello Millions, Real Prize and Zula were not waiting around for an exit plan.

Here is what is happening at most of these sites:

• From April 3rd, players will no longer be able to purchase Gold Coin packages.
• Players can continue to play using any remaining Gold Coins or enter promotional sweepstakes with any remaining Sweepstakes Coins until April 16th.
• Any mail-in requests for free SC dated after April 3rd will not be credited.
• Players will be able to redeem any SC until April 29th. After this date, it will no longer be possible to redeem any further prizes.
• On April 30th, NY-based accounts will automatically close, revoking access, and any remaining Gold Coins and Sweepstakes Coins will expire.

By  Gilbert Horowitz Gilbert is the esteemed reporter for Gambling911 covering all gamuts of the industry.  He has been with the site for the better part of a decade.  Gilbert works out of the Miami Beach bureau.