S 5935: Prohibits online sweepstakes games and revenue from illegal markets; sets penalties; provides for enforcement of provisions.

  
  STATE OF NEW YORK ________________________________________________________________________ 5935 2025-2026 Regular Sessions  IN SENATE March 4, 2025 ___________ Introduced by Sen. ADDABBO -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wager- ing AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to prohibiting online sweepstakes games and revenue from illegal markets The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative purpose. It is the purpose of this legislation 2 to prohibit certain persons from operating, conducting, or promoting 3 certain online sweepstakes games or supporting the operation, conduct- 4 ing, or promotion of certain online sweepstakes games. This legislation 5 requires the New York state gaming commission and/or the New York state 6 attorney general to deny a person from commencing or continuing oper- 7 ations if such person or an affiliate of such person knowingly accepts 8 revenue that is directly or indirectly derived from online sweepstakes 9 games, and enforce penalties on behalf of any findings of prohibited 10 engagement. 11 § 2. The racing, pari-mutuel wagering and breeding law is amended by 12 adding a new section 912 to read as follows: 13 § 912. Prohibition of online sweepstakes games and revenue from ille- 14 gal markets. 1. Definitions. For the purposes of this section, "online 15 sweepstakes game" shall mean any game, contest, or promotion that is 16 available on the internet and/or accessible on a mobile phone, computer 17 terminal, or similar access device, that utilizes a dual-currency system 18 of payment allowing the player to exchange the currency for any prize, 19 award, cash or cash equivalents, or any chance to win any price, award, 20 cash or cash equivalents, and simulates casino-style gaming, including 21 but not limited to, slot machines, video poker, table games including 22 but not limited to blackjack, roulette, craps, and poker, lottery games 23 including but not limited to draw games, instant win games, keno, and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10101-01-5 
 S. 5935 2 1 bingo, and sports wagering. A sweepstakes game shall not include a game 2 which does not award cash prizes or cash equivalents. 3 2. Prohibition. (a) It shall be unlawful for any applicant, licensed 4 entity, gaming employee, key employee, individual investor or investment 5 firm, board member, or any other person or entity to operate, conduct, 6 or promote sweepstakes games within the state of New York. 7 (b) It shall be unlawful for any applicant, licensed entity, financial 8 institution, payment processor, geolocation provider, gaming content 9 supplier, platform provider, or media affiliate to support the opera- 10 tion, conduct, or promotion of sweepstakes games within the state of New 11 York. 12 3. Penalties. Any applicant, licensed entity, gaming employee, key 13 employee, individual investor or investment firm, board member, or any 14 other person or entity found in violation of this section shall be 15 subject to a fine of not less than ten thousand dollars and not more 16 than one hundred thousand dollars for each violation and shall be 17 subject to the loss of a gaming license and/or be ineligible for a 18 gaming license. 19 4. Enforcement. (a) The state gaming commission, the state police, or 20 the attorney general's office shall have the authority to enforce the 21 provisions of this section. 22 (b) The state gaming commission may conduct investigations, hold hear- 23 ings, issue cease and desist letters, and issue subpoenas to ensure 24 compliance with the provisions of this section. 25 § 3. This act shall take effect immediately.