Sweepstakes Business VGW Departing New York Amidst Growing Influence of Regulatory Legislation
New York Senate Bill Aiming to Ban Sweepstakes Casinos Progresses
A Senate bill seeking to prohibit online sweepstakes casinos in New York, Senate Bill 5935 (SB 5935), is making its way through the legislative process. This bill aims to outlaw games that use a "dual-currency system", where players can use both free in-game currency and currency that can be cashed out, simulating casino-style gambling activities such as slots, poker, bingo, and sports betting.
Recent amendments have transferred the authority to define what constitutes a "dual-currency system" from lawmakers to the New York State Gaming Commission. This change provides regulatory agencies with flexibility to adapt to evolving online gambling methods. The amendment also removed earlier language exempting games without cash prizes, broadening the bill's scope.
Enforcement powers will be shared among the New York State Gaming Commission, state police, and the Attorney General’s office, who can investigate violations and issue cease-and-desist orders. The bill closely follows Assembly Bill 6745, sponsored by Assemblywoman Carrie Woerner, with a similar focus on online sweepstakes mimicking illegal gambling.
As the legislative session recess approaches on June 12, 2025, there is a limited time left for the Senate and Assembly to reconcile their versions and finalize the legislation. In preparation for the potential ban, sweepstakes casino operators like VGW Holdings have begun winding down their New York operations.
Grant Mitchell, a former Virginia Tech graduate and former NCAA track and field athlete, is providing up-to-the-minute coverage of headlines in the sports betting industry. He has worked with Forbes and VSiN and earned a reliable reputation in the industry. When he's not working, you can find him exercising, walking around the city, or watching the big game of the day.
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- Despite the ongoing efforts to ban online sweepstakes casinos in New York, some operators like VGW Holdings are already preparing for the potential closure of their New York operations.
- The Senate bill seeking to prohibit such casinos, SB 5935, has transferred the authority to define a "dual-currency system" to the New York State Gaming Commission, allowing regulatory agencies to adapt to evolving online gambling methods.
- The amendment has broadened the bill's scope by removing earlier language exempting games without cash prizes, potentially affecting various games such as blackjack, poker, and even progressive jackpot games in online casinos.
- The bill also aims to outlaw games that simulate casino-style gambling activities, including sports betting, a popular segment in the finance and business industry.
- Grant Mitchell, a well-known figure in the sports betting industry, is providing insightful coverage of this legislative development, using his expertise to report on the impact on various games like poker, blackjack, and even potential changes in the progressive jackpot sector in the online casino scene, especially in cities like Las Vegas.
