Sweepstakes Casino Ban Possible in New York, NH Looks to Permit Online Casinos

Senator Addabbo Reveals Plan to Ban Sweepstakes Casinos

Senator Joseph Addabbo, the Chair of the New York State Senate Racing, Gaming, and Wagering Committee, has announced his intention to push for a ban on sweepstakes casinos.

This is following the discovery of a loophole that allows these unregulated platforms to operate across the state.

“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.

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.

New Hampshire Could Soon Allow i-Gaming

Per gaming attorney - Daniel Wallach, New Hampshire became the 8th state to introduce an iGaming bill. SB 168 -- filed by Sen. Tim Lang Jr. -- would allow "no more than 6 and no less than 3 online gaming wagering platforms" tethered to state-licensed gaming facilities; 45% tax rate.

New Hampshire already regulates sports betting by way of DraftKings, the only licensed sportsbook.

The state is one of the few that allows those 18 and up to bet sports.  Lawmakers are currently looking at moving that requirement up to 21.