NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6745AREVISED 6/12/25
SPONSOR: Woerner 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 - Provides the legislative purpose of the bill.
Section 2 - Amends the racing, pari-mutuel wagering and breeding law by
adding a new section 912, which:
*Defines "online sweepstakes game," specifies the types of games covered
under this prohibition, and requires the Commission to determine what
constitutes a dual-currency system.
*Defines "table games." *Defines "lottery games."
*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 fines ranging from $10,000 to $100,000
per violation and potential loss of a gaming license. All fines result-
ing from violations of this section will be collected by the Commission
and deposited into the commercial gaming revenue fund to be distributed
for problem gambling education and treatment purposes.
*Grants enforcement authority to the State Gaming Commission, State
Police, or Attorney General's office.
Section 3 - Provides the effective date.
JUSTIFICATION:
Platforms are using online real money "sweepstakes casinos" to try to
avoid New York's gambling laws. This legislation clarifies that online
real money "sweepstakes casinos" constitutes illegal gambling and estab-
lishes penalties for operating or facilitating unregulated online gambl-
ing.
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 otherwise subject. These products and
operations are untaxed and unregulated. They present unfair competition
to the state's legal, highly regulated and economically important casi-
nos.
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:
New Bill
FISCAL IMPLICATIONS:
There is no fiscal impact on the State or local governments.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
6745--A
2025-2026 Regular Sessions
IN ASSEMBLY
March 11, 2025
___________
Introduced by M. of A. WOERNER, VANEL, KAY, ROZIC, FALL, BUTTENSCHON,
BURDICK, SHIMSKY, McDONALD, BEEPHAN, HAWLEY, K. BROWN, GLICK, KASSAY,
LUNSFORD -- read once and referred to the Committee on Racing and
Wagering -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
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, the
15 following terms shall have the following meanings:
16 (a) "Online sweepstakes game" shall mean any game, contest, or
17 promotion that is available on the internet and/or accessible on a
18 mobile phone, computer terminal, or similar access device, that utilizes
19 a dual-currency system of payment allowing the player to exchange the
20 currency for any cash prize, cash award or cash equivalents, or any
21 chance to win any cash prize, cash award or cash equivalents, and simu-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10101-04-5
A. 6745--A 2
1 lates casino-style gaming, including but not limited to, slot machines,
2 video poker, table games, lottery games, bingo, or sports wagering. The
3 state gaming commission shall determine what constitutes a dual-currency
4 system pursuant to this paragraph.
5 (b) "Table games" shall include, but not be limited to, blackjack,
6 roulette, craps, and poker.
7 (c) "Lottery games" shall include, but not be limited to, draw games,
8 instant win games, and keno.
9 2. Prohibition. (a) It shall be unlawful for any applicant, licensed
10 entity, gaming employee, key employee, individual investor or investment
11 firm, board member, or any other person or entity to operate, conduct,
12 or promote online sweepstakes games within the state of New York.
13 (b) It shall be unlawful for any applicant, licensed entity, financial
14 institution, payment processor, geolocation provider, gaming content
15 supplier, platform provider, or media affiliate to support the opera-
16 tion, conduct, or promotion of online sweepstakes games within the state
17 of New York.
18 3. Penalties. (a) Any applicant, licensed entity, gaming employee, key
19 employee, individual investor or investment firm, board member, or any
20 other person or entity found in violation of this section shall be
21 subject to a fine of not less than ten thousand dollars and not more
22 than one hundred thousand dollars for each violation and shall be
23 subject to the loss of a gaming license and/or be ineligible for a
24 gaming license.
25 (b) All fines resulting from violations of this section shall be
26 collected by the state gaming commission and deposited into the commer-
27 cial gaming revenue fund, established in section ninety-seven-nnnn of
28 the state finance law, to be distributed for problem gambling education
29 and treatment purposes pursuant to paragraph a of subdivision four of
30 such section.
31 4. Enforcement. (a) The state gaming commission, the state police, or
32 the attorney general's office shall have the authority to enforce the
33 provisions of this section.
34 (b) The state gaming commission, state police or attorney general's
35 office may conduct investigations, hold hearings, issue cease and desist
36 letters, and issue subpoenas to ensure compliance with the provisions of
37 this section.
38 § 3. This act shall take effect immediately.
