Senator Joseph Addabbo’s Stand Against the Sweepstakes Gaming Model

New York State Senator Joseph Addabbo has expressed strong opposition to the sweepstakes gaming model. He contends that the platforms utilizing this model operate on a ‘dual-currency‘ system, which effectively enables them to bypass current gambling regulations.

Senator Joseph Addabbo Criticizes the Sweepstakes Industry

In essence, Senator Addabbo and, by extension, the state of New York, align with other critical voices, including industry representatives such as the American Gaming Association, private enterprises, and tribal gaming groups, all of whom have raised concerns about the legitimacy of the sweepstakes model.

• Senator Addabbo’s legislative proposal, Bill 5935, articulates the reasons why this activity should be prohibited.
• He argues that the dual system is frequently used to convert virtual currency into real money.
• He also notes the rising popularity of sweepstakes gaming operations.

Nonetheless, Senator Addabbo’s proposal is not guaranteed to succeed. He has been an influential figure in the realm of gambling legislation and has consistently advocated for the legalization of various sectors, including both land-based and online gambling.

Historically, he has supported the gambling industry as a means of generating additional revenue, fostering economic development, and curbing illegal market activities. However, it has taken him years to persuade fellow lawmakers to take action, a notable example being his persistent efforts to legalize sports betting.

In late February, the American Gaming Association denounced sweepstakes casinos and gaming activities in general, describing them as ‘legal acrobatics‘ that need to be addressed.

The SPGA, a newly established organization tasked with countering such portrayals of the sweepstakes model, has consistently argued that the recent criticisms are unwarranted. The association stated:

‘As constructed, the bill could criminalize promotional sweepstakes used by small businesses in New York, risking millions in revenue for local shops and restaurants and threatening thousands of jobs in an already fragile economic climate.’

SPGA Appeals for Moderation and Challenges the Criticisms

The SPGA has emphasized that sweepstakes have a solid foundation in legal and historical precedent. They have criticized Senator Addabbo’s proposal for a complete ban on the sector. Despite these appeals and arguments, various states seem poised to confront the sector, with Mississippi currently discussing legislation to prohibit sweepstakes casinos.

Simultaneously, the Indian Gaming Association has also voiced its disapproval, asserting that sweepstakes infringe upon tribal sovereignty.