NY Influencer Targets Proposal for Prohibiting Casino Sweepstakes
Going After the Sweepstakes Gambling Industry: A New York Senator's Crusade
New York State Senator Joseph Addabbo has bared his teeth against the sweepstakes gaming model, accusing these platform providers of operating a “dual-currency” system that enables them to bypass existing gambling laws. This move has joined the Sen. Addabbo with a chorus of naysayers, including industry heavyweights like the American Gaming Association, private companies, and tribal gaming entities, who have expressed doubts about the legitimacy of the sweepstakes model.
The Sen. Joseph Addabbo Antagonism Towards Sweepstakes Gaming
Sen. Addabbo's Bill 5935 decries the ban on sweepstakes gaming operations. The Senator argues that the dual system is used to convert the seemingly worthless virtual currency into actual money, and that the surge in popularity of sweepstakes gaming activities is a cause for concern.
Senator Addabbo's proposition, however, faces an uphill battle. Despite his substantial influence in gambling circles, and his relentless advocacy for legalizing various gambling sectors, it has taken him years to persuade his fellow lawmakers to take a decisive action, sports betting being a prominent example of his persistent push.
At the end of February, the American Gaming Association disparaged sweepstakes casinos as a form of "circus tactics," demanding action.
The newly-formed SPGA—the organization established to counter such criticisms of the sweepstakes model—has questioned the fairness of the latest assault on the sector, stating:
"As presented, the bill could criminalize promotional sweepstakes used by small businesses in New York, potentially jeopardizing millions in revenue for local shops and restaurants and placing thousands of jobs at risk in an already precarious economic climate."
The SPGA's Call for Moderation and Defense Against Criticism
The SPGA insists that sweepstakes are firmly entrenched in legal and historical precedent. Criticizing Sen. Addabbo's new measure proposing an outright ban on the sector, the association believes that states are ready to take a stand against the sector, with Mississippi currently debating a law that would prohibit sweepstakes casinos.
Similarly, the Indian Gaming Association has voiced its discontent with the sector, arguing that sweepstakes encroach upon tribal sovereignty.
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Enrichment Insights:
Although mostly legal in the US, sweepstakes gaming has been met with challenges from various stakeholders. Over 48 states allow sweepstakes, with exceptions in Idaho (limiting cash prizes to non-cash rewards) and Washington and Michigan (outright bans). Debates among New York, Florida, Maryland, West Virginia, and others center around legislation to regulate or ban sweepstakes gaming. The American Gaming Association suggests such platforms pose regulatory and consumer protection threats, while the SPGA opposes such efforts on legal and consumer protection grounds. Meanwhile, the Indian Gaming Association concerns itself with the impact of unregulated sweepstakes casinos on tribal gaming revenue and sovereignty. Ongoing investigations, lawsuits, and evolving state legislation indicate that this issue will remain contentious in the near future.
- Senator Joseph Addabbo's antagonism towards sweepstakes gaming continues, as he proposes a bill that decries the ban on sweepstakes gaming operations and argues against the use of a dual system to convert virtual currency into actual money.
- The American Gaming Association, along with the SPGA and Indian Gaming Association, have expressed doubts about the legitimacy of the sweepstakes model, with the American Gaming Association labeling sweepstakes casinos as "circus tactics" and the SPGA questioning the fairness of the latest assault on the sector.
