The ongoing debate on whether to prohibit or control lottery-style contests: legislation options?
The sweepstakes casino gaming industry found itself under the spotlight at the recent Saratoga Racing and Gaming Conference, a prominent event that brings together key players in the racing and gaming industries.
At a panel during the conference, discussion revolved around the need for regulation and taxation of the industry. However, the bill currently on Gov. Kathy Hochul's desk focuses on making sweepstakes casino games illegal.
New York, along with several other states such as Connecticut, Nevada, Massachusetts, and Louisiana, is currently debating the regulation or potential ban of sweepstakes casinos. While no ban is yet in effect in New York, lawmakers have shown interest in tightening oversight or possibly prohibiting such operations.
The ongoing debate is a reflection of the challenges and criticism facing the sweepstakes casino gaming industry from various sectors, including retail casino operators, state legislators, and regulators across the United States.
The bill sponsored by Sen. Joseph Addabbo Jr. does not seem to prioritize regulation and taxation for sweepstakes casino games as much as some industry advocates, such as Bill Pascrell III, a lobbyist for gaming companies, would prefer. Pascrell expressed opposition to banning anything, believing that such actions could lead to unregulated gambling and a lack of player protection.
John Brennan, who participated in the discussion at the Saratoga Racing and Gaming Conference, did not express support for the bill sponsored by Sen. Addabbo Jr. Instead, he emphasized the importance of regulation and player protection.
It's important to note that sweepstakes casinos operate by removing the "consideration" element, distinguishing them legally from traditional gambling and allowing them to offer prizes without state gaming licenses. At the federal level, sweepstakes casinos are legal because they meet the legal criteria for sweepstakes promotions.
As of August 2025, sweepstakes casinos remain legal and operational in New York, but their future is uncertain due to the ongoing legislative discussions. Montana, Washington, Michigan, and other states have already banned sweepstakes casinos outright, with Montana's ban expected to take effect in October 2025.
Both Pascrell and Addabbo Jr. support regulated and taxed new gambling, similar to authorized gaming operators. As the debate continues, it remains to be seen how the landscape of the sweepstakes casino gaming industry will evolve in New York and across the United States.
- Despite the ongoing debate over the regulation or potential ban of sweepstakes casinos, some industry advocates, like Bill Pascrell III, lobbyist for gaming companies, argue for regulation and taxation rather than a complete ban, citing unregulated gambling and lack of player protection as concerns.
- In the realm of general-news, the future of sweepstakes casinos in business and finance is uncertain as lawmakers in New York, along with other states such as Connecticut, Nevada, Massachusetts, and Louisiana, continue to debate their regulation or possible prohibition.
