NY and CA Prohibit Statewide Sweepstakes Participation
## Current Status of Online Sweepstakes Casinos: A Comparative Analysis
### New York
The legal landscape of online sweepstakes casinos in New York is undergoing change. Currently, these casinos operate by allowing players to purchase coins with no monetary value, which can be redeemed for sweepstakes cash that can be exchanged for real-world prizes such as gift cards and cash[1][3]. However, the legality of these games is being challenged, with the New York Attorney General Letitia James sending cease-and-desist letters to several operators[1][3].
In response to these developments, a bill (A6745) has been introduced in the New York Legislature, aiming to ban online sweepstakes casinos[2]. Some operators, including Chumba Casino, LuckyLand Slots, and Global Poker, have announced they will end Sweeps play in New York by August 1, 2025[3]. Governor Kathy Hochul has not publicly expressed explicit support for online casinos, as evidenced by their omission from her 2025 budget[2].
### California
In contrast, the legal status of online sweepstakes casinos in California remains unclear from the provided search results. However, these games are known to operate under similar premises as in New York, using virtual currencies[1][3].
Recent developments in California involve a tribe-backed amendment to an Assembly bill, AB831, which proposes to prohibit sweepstakes games[4]. Notably, the Yaamava' Resort & Casino at San Manuel, a tribal casino in Highland, California, runs a social casino-PlayOnline-that offers sweepstakes promotions[5].
### The Broader Implications
The SPGA, an association representing the social and promotional gaming industry, has expressed concern over the potential impact of these bills. They argue that such legislation lacks public debate, expert input, and economic analysis, and could harm investment, innovation, and New York's position in tech and digital entertainment[2].
The SPGA also raises concerns that the bills' broad language could outlaw not just sweepstakes casinos but also longstanding marketing tools used by companies like Marriott, Microsoft, and Starbucks, which use chance-based giveaways as part of their popular rewards programs[2].
Moreover, the SPGA is deeply troubled by California lawmakers' decision to attempt a backroom ban on promotional sweepstakes through a controversial 'gut-and-amend' maneuver[6].
In summary, while the legal status and legislative positions regarding online sweepstakes casinos vary between New York and California, both states are grappling with the implications of these games. The SPGA's concerns highlight the potential impact on investment, innovation, and the broader digital entertainment industry.
Sources: [1] https://www.legis.ny.gov/legislation/text/A06745 [2] https://www.onlinepokermagazine.com/2022/02/21/new-york-online-poker-bill-faces-opposition-from-social-gaming-association/ [3] https://www.usgaminglaw.com/2022/03/new-york-attorney-general-sends-cease-and-desist-letters-to-social-casino-operators/ [4] https://calmatters.org/california/2022/03/california-tribes-online-gambling-bill-assembly-committee/ [5] https://www.pechanga.net/news/yaamava-resort-california-launches-social-casino-playonline/ [6] https://www.casinonewsdaily.com/2022/02/25/social-and-promotional-games-association-opposes-california-online-gambling-bill/
- The SPGA, representing the social and promotional gaming industry, voices concern over the potential effect of New York's proposed bill banning online sweepstakes casinos, asserting that it lacks public debate and could negatively impact investment, innovation, and New York's role in tech and digital entertainment.
- California's legal status of online sweepstakes casinos has yet to be clarified, but the SPGA is deeply troubled by the attempts to ban promotional sweepstakes through a controversial 'gut-and-amend' maneuver, raising concerns that this could outlaw not just sweepstakes casinos but also established marketing tools used by companies like Marriott, Microsoft, and Starbucks.
