New York powerbroker eyeing sweepstakes casino ban

New York State Senator Joseph Addabbo has declared himself against the sweepstakes gaming model, arguing that the platforms that leverage it have a "dual-currency" system, which effectively allows them to circumnavigate existing gambling laws.

Sen. Joseph Addabbo goes on the offensive against the sweepstakes sector

In other words, Sen. Addabbo and New York, by extension, join the choir of antagonistic voices, including industry representatives such as the American Gaming Association, private companies, and tribal gaming entities, to have questioned the legitimacy of the sweepstakes model.

Sen. Addabbo’s Bill 5935 outlines why the activity ought to be banned. The dual system, he argues, is easily used to convert the existing mock-up currency into real money, he argued, adding that the popularity of sweepstakes gaming operations has been steadily climbing up.

Sen. Addabbo’s proposal, though, is far from a shoo-in. Sen. Addabbo has been a powerful lawmaker in gambling circles, and he has been an unflagging advocate for the legalization of multiple verticals, including land-based and online.

He has generally championed the gambling industry as a source of additional income, economic development, and the opportunity to address black market operations. Yet it has taken him years to convince fellow lawmakers to act one way or another, with sports betting being a very notable example of his continued push over the years.

At the end of February, the American Gaming Association has called out sweepstakes casinos and gaming in general as a form of "legal acrobatics," and that needed to go.

The SPGA, a newly set-up body designated to fight back against such depiction of the sweepstakes model, has repeatedly said that the freshly-launched attack on the sector was unfair. The association said:

"As constructed, the bill could criminalize promotional sweepstakes used by small businesses in New York, risking millions in revenue for local shops and restaurants and threatening thousands of jobs in an already fragile economic climate."

SPGA urges for moderation and pushes back against criticism

Sweepstakes, the SPGA has insisted on, is well-established in legal and historic precedent, the SPGA reminded, and criticized Sen. Addabbo’s new measure suggesting an outright ban of the sector. Despite those pleas and arguments, states seem to be up in arms and ready to push against the sector, with Mississippi debating a law that would prohibit sweepstakes casinos.

At the same time, the Indian Gaming Association has similarly launched its own criticism of the sector, arguing that sweepstakes impinge on tribal sovereignty.

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