S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5935--A
     Cal. No. 567
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               March 4, 2025
                                ___________
 
 Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Racing, Gaming and  Wager-
   ing  --  reported  favorably from said committee, ordered to first and
   second report,  ordered  to  a  third  reading,  amended  and  ordered
   reprinted, retaining its place in the order of third reading
 
 AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
   relation to prohibiting online  sweepstakes  games  and  revenue  from
   illegal markets
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative purpose. It is the purpose of this  legislation
 to  prohibit  certain  persons  from operating, conducting, or promoting
 certain online sweepstakes games or supporting the  operation,  conduct-
 ing,  or promotion of certain online sweepstakes games. This legislation
 requires the New York state gaming commission and/or the New York  state
 attorney  general  to  deny a person from commencing or continuing oper-
 ations if such person or an affiliate of such person  knowingly  accepts
 revenue  that  is directly or indirectly derived from online sweepstakes
 games, and enforce penalties on behalf of  any  findings  of  prohibited
 engagement.
   §  2.  The racing, pari-mutuel wagering and breeding law is amended by
 adding a new section 912 to read as follows:
   § 912. PROHIBITION OF ONLINE SWEEPSTAKES GAMES AND REVENUE FROM  ILLE-
 GAL  MARKETS.  1.  DEFINITIONS.  FOR  THE  PURPOSES OF THIS SECTION, THE
 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "ONLINE  SWEEPSTAKES  GAME"  SHALL  MEAN  ANY  GAME,  CONTEST,  OR
 PROMOTION  THAT  IS  AVAILABLE  ON  THE  INTERNET AND/OR ACCESSIBLE ON A
 MOBILE PHONE, COMPUTER TERMINAL, OR SIMILAR ACCESS DEVICE, THAT UTILIZES
 A DUAL-CURRENCY SYSTEM OF PAYMENT ALLOWING THE PLAYER  TO  EXCHANGE  THE
 CURRENCY  FOR  ANY  CASH  PRIZE,  CASH AWARD OR CASH EQUIVALENTS, OR ANY
 CHANCE TO WIN ANY CASH PRIZE, CASH AWARD OR CASH EQUIVALENTS, AND  SIMU-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10101-05-5
 S. 5935--A                          2
 
 LATES  CASINO-STYLE GAMING, INCLUDING BUT NOT LIMITED TO, SLOT MACHINES,
 VIDEO POKER, TABLE GAMES, LOTTERY GAMES, BINGO, OR SPORTS WAGERING.  THE
 STATE GAMING COMMISSION SHALL DETERMINE WHAT CONSTITUTES A DUAL-CURRENCY
 SYSTEM PURSUANT TO THIS PARAGRAPH.
   (B)  "TABLE  GAMES"  SHALL  INCLUDE, BUT NOT BE LIMITED TO, BLACKJACK,
 ROULETTE, CRAPS, AND POKER.
   (C) "LOTTERY GAMES" SHALL INCLUDE, BUT NOT BE LIMITED TO, DRAW  GAMES,
 INSTANT WIN GAMES, AND KENO.
   2.  PROHIBITION.  (A) IT SHALL BE UNLAWFUL FOR ANY APPLICANT, LICENSED
 ENTITY, GAMING EMPLOYEE, KEY EMPLOYEE, INDIVIDUAL INVESTOR OR INVESTMENT
 FIRM, BOARD MEMBER, OR ANY OTHER PERSON OR ENTITY TO  OPERATE,  CONDUCT,
 OR PROMOTE ONLINE SWEEPSTAKES GAMES WITHIN THE STATE OF NEW YORK.
   (B) IT SHALL BE UNLAWFUL FOR ANY APPLICANT, LICENSED ENTITY, FINANCIAL
 INSTITUTION,  PAYMENT  PROCESSOR,  GEOLOCATION  PROVIDER, GAMING CONTENT
 SUPPLIER, PLATFORM PROVIDER, OR MEDIA AFFILIATE TO  SUPPORT  THE  OPERA-
 TION, CONDUCT, OR PROMOTION OF ONLINE SWEEPSTAKES GAMES WITHIN THE STATE
 OF NEW YORK.
   3. PENALTIES. (A) ANY APPLICANT, LICENSED ENTITY, GAMING EMPLOYEE, KEY
 EMPLOYEE,  INDIVIDUAL  INVESTOR OR INVESTMENT FIRM, BOARD MEMBER, OR ANY
 OTHER PERSON OR ENTITY FOUND IN  VIOLATION  OF  THIS  SECTION  SHALL  BE
 SUBJECT  TO  A  FINE  OF NOT LESS THAN TEN THOUSAND DOLLARS AND NOT MORE
 THAN ONE HUNDRED THOUSAND  DOLLARS  FOR  EACH  VIOLATION  AND  SHALL  BE
 SUBJECT  TO  THE  LOSS  OF  A  GAMING LICENSE AND/OR BE INELIGIBLE FOR A
 GAMING LICENSE.
   (B) ALL FINES RESULTING FROM  VIOLATIONS  OF  THIS  SECTION  SHALL  BE
 COLLECTED  BY THE STATE GAMING COMMISSION AND DEPOSITED INTO THE COMMER-
 CIAL GAMING REVENUE FUND, ESTABLISHED IN  SECTION  NINETY-SEVEN-NNNN  OF
 THE  STATE FINANCE LAW, TO BE DISTRIBUTED FOR PROBLEM GAMBLING EDUCATION
 AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION  FOUR  OF
 SUCH SECTION.
   4.  ENFORCEMENT. (A) THE STATE GAMING COMMISSION, THE STATE POLICE, OR
 THE ATTORNEY GENERAL'S OFFICE SHALL HAVE THE AUTHORITY  TO  ENFORCE  THE
 PROVISIONS OF THIS SECTION.
   (B)  THE  STATE  GAMING COMMISSION, STATE POLICE OR ATTORNEY GENERAL'S
 OFFICE MAY CONDUCT INVESTIGATIONS, HOLD HEARINGS, ISSUE CEASE AND DESIST
 LETTERS, AND ISSUE SUBPOENAS TO ENSURE COMPLIANCE WITH THE PROVISIONS OF
 THIS SECTION.
   § 3. This act shall take effect immediately.