SPGA members shifting strategy in New York after state officials talks
Sweepstakes trade body highlights “constructive conversations” with state officials after prohibition bill was unanimously passed in the senate earlier this month
The Social and Promotional Games Association (SPGA) has announced its members will adjust their strategy in New York after holding “constructive conversations” with state officials.
Earlier this month, the New York Senate Committee on Racing, Gaming, and Wagering unanimously passed a bill banning sweepstakes gaming in the state.
Senate Bill 5,935, introduced by Senator Joseph Addabbo, has now progressed to the senate floor.
The bill would introduce a penalty system for violations, with fines reaching as high as $100,000 and potential license losses for offending operators.
In a statement released last night (March 27),the SPGA highlighted daily fantasy sports (DFS) as a potential model for sweepstakes gaming to follow in the Empire State.
An SPGA spokesperson said: “Innovation in digital entertainment often requires a constructive and informed dialogue with lawmakers and policymakers.
“We saw that dynamic with fantasy sports, and we believe the same approach will help shape smart policy around sweepstakes promotions.”
SPGA members will seek individual legal guidance in order to determine the best way to move forward should the sweepstakes ban come to pass.
The organization also claimed that the introduction of SB 5,935 highlights that sweepstakes gaming is already legal in New York.
The SPGA added that “a proposal to ban sweepstakes games would be unnecessary if they were already prohibited under state law,” and noted that any ban on sweepstakes would have implications outside of the gambling industry.
“We know New York officials recognize the need to get this right,” the spokesperson said, “because any decisions about social sweepstakes could have broader implications, not only for promotions by companies like Starbucks and Marriott, but also for any mobile game where consumers spend money, from Candy Crush and Coin Master to Clash of Clans and Monopoly Go.
“Unlike online casino products, social sweepstakes games include a no-purchase-necessary option. Most players participate for free, and the games offer a low-pressure, low-risk entertainment experience, one of the reasons they enjoy such broad consumer appeal.
“SPGA continues to advocate for the millions of American adults who enjoy these promotional games, and remains committed to responsible operations, transparency, and open dialogue with regulators.”
In addition to New York, Arkansas, Mississippi, and New Jersey have all introduced legislation to potentially ban sweepstakes so far this year.