BILL NUMBER: S5935
SPONSOR: ADDABBO
 
TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to prohibiting online sweepstakes games and revenue from ille-
gal markets
 
PURPOSE:
To prohibit certain persons from operating, conducting, or promoting
certain online sweepstakes games or supporting the operation, conduct,
or promotion of such games. The bill also grants authority to the New
York State Gaming Commission and the Attorney General to enforce penal-
ties against violators.
 
SUMMARY OF PROVISIONS:
Section 1 - Establishes the legislative purpose to prohibit online
sweepstakes games and related revenue sources from illegal markets. It
mandates enforcement by the New York State Gaming Commission and/or the
Attorney General.
Section 2 - Amends the racing, pari-mutuel wagering and breeding law by
adding a new section 912, which:
*Defines "online sweepstakes game" and specifies the types of games
covered under this prohibition.
*Prohibits the operation, conduct, or promotion of online sweepstakes
games by any applicant, licensed entity, gaming employee, or other
related individuals or entities.
*Prohibits financial institutions, payment processors, geolocation
providers, gaming content suppliers, platform providers, or media affil-
iates from supporting such games.
*Establishes penalties, including finesranging from $10,000 to $100,000
per violation and potential loss of a gaming license.
*Grants enforcement authority to the State Gaming Commission, State
Police, and Attorney General's office.
Section 3 - Provides the effective date.
 
JUSTIFICATION:
This legislation clarifies thatonlinerealmoney "sweepstakes casinos"
constitutes illegal gambling and establishes penalties for operating or
facilitating unregulated online gambling.
Online real money "sweepstakes casinos" have recently become widely
available in New York over the internet on mobile devices and personal
computers, including to minors. These products evade consumer
protection, responsible gaming, and anti-money laundering requirements
to which gambling in New York is otherwisesubject.These
productsandoperationsareuntaxed and unregulated. They present unfair
competition to the state's legal, highly regulated and economically
important casinos.
The legislation will provide a powerful deterrent to offshore and domes-
tic illegal online gaming operators from entering the state and/or to
withdraw from the state and will provide robust tools to the Gaming
Commission and the Attorney's General Office to enforce the law.
 
LEGISLATIVE HISTORY:
N/A
 
FISCAL IMPLICATIONS:
There is no fiscal impact on the State or local governments.
 
EFFECTIVE DATE:
This act shall take effect in the following fiscal year.