Sweepstakes Industry Warns New York Bill Could Harm Businesses
The Social and Promotional Games Association (SPGA) is sounding the alarm over a recent amendment to New York Senate Bill S5935, warning that the changes fail to address the bill's fundamental flaws and continue to pose a significant threat to digital innovation and business growth.
LISTEN TO THIS ARTICLE:The bill, which aims to ban promotions at online sweepstakes casinos, has drawn intense scrutiny from both industry stakeholders and consumer advocates. The latest amendment shifts the responsibility of defining what constitutes a "dual-currency system"—a core aspect of the proposed restrictions—to the New York State Gaming Commission.
In a statement released Thursday, SPGA criticized the move as a superficial attempt to pacify critics.
This amendment is a clear acknowledgment that this anti-business bill needlessly threatens New York's economy. But this amendment doesn't fix anything. It’s a political patch meant to quiet critics without solving the underlying problem.
Industry Leaders Raise Concerns Over Ambiguity in New York Sweepstakes Bill Amendment
Industry leaders fear that by delegating vague legal definitions to regulators, the amendment only adds uncertainty for businesses that rely on sweepstakes and loyalty-based promotions, including major brands like McDonald’s, Marriott, and Starbucks. These companies, along with countless small businesses, utilize promotional games as legitimate marketing tools.
“Lawmakers wouldn't be amending the bill if it didn’t need amending,” the SPGA spokesperson added. “New York legislators are publicly admitting the bill was flawed, and other states like Louisiana should take note before making the same mistake.”
Relevant: SPGA Raises Concerns over Louisiana Sweepstakes Ban Bill
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SPGA Calls for Balanced Regulation
The SPGA argues that instead of working collaboratively with legal and industry experts to draft effective, modern policy, New York’s legislature has chosen to advance a bill that undermines consumer choice and innovation. “This was already bad legislation. Lawmakers have taken a mess and made it into a catastrophe,” the spokesperson concluded.
Despite its sharp criticism, the SPGA reaffirmed its willingness to work with lawmakers on creating sensible, balanced regulation. The association says its goal is to protect consumers while ensuring that businesses can continue offering digital promotions without fear of legal ambiguity or criminalization.
The Social and Promotional Games Association advocates for responsible innovation and clear regulation in the digital gaming and promotional sweepstakes industry. Representing a coalition of stakeholders, the SPGA works to protect players and ensure the integrity of online gaming experiences nationwide.
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