S5935A

The New York State Senate passed legislation Wednesday to ban illegal online sweepstakes casino-style games, with a 57-2 vote. Senate Print 5935A, sponsored by Sen. Addabbo, prohibits the operation and promotion of online casino games in New York and targets payment processors, geolocation providers, and platform providers that knowingly support such illegal activity. The bill imposes fines ranging from $10,000 to $100,000 for violations, with collected fines directed to problem gambling programs. Addabbo argued the measure protects minors from predatory online gaming sites that exploit young people and prevents revenue loss to illegal markets while New York has not legalized online gaming. The bill specifically carves out legitimate promotional sweepstakes like Starbucks' spin-the-wheel games. However, debate revealed concerns from Sen. Canzoneri-Fitzpatrick and Sen. Rhoads about unclear enforcement standards and whether the statute adequately defines what constitutes a violation, particularly regarding the obligations of financial institutions. Rhoads noted the bill relies on federal law standards but does not reference them in the state statute, potentially leaving payment processors uncertain about compliance requirements. Addabbo countered that federal law provides safe-harbor language defining "knowingly" and that the Gaming Commission and Attorney General have existing authority to enforce gaming laws. Only Sens. O'Mara and Ortt voted against the measure.