During the taping of a podcast series on New York State gaming with political news organization City and State, Senator Joseph P. Addabbo, Jr., Chair of the NYS Senate Racing, Gaming, and Wagering Committee discussed an existing loophole for online sweepstakes casino operators that appeal to individuals, especially older teens and young adults.

“One of my primary objectives as Gaming chair is ensuring New Yorkers are protected from gambling operations that have the potential of becoming more problematic without proper legislative action, such as unregulated sweepstakes casino operators,” stated Addabbo. “Many sweepstakes’ operators are located offshore making enforcement limited or impossible, and our most vulnerable populations, youth and elderly, are most often targeted, which is why I want to act to address this existing loophole,” Addabbo added.

The Senator expressed that the sweepstakes operators are allowing individuals to pay for virtual coins and win more coins that can be redeemed for cash prizes. “The use of money to play a game and win more money is simple gambling and should be safely regulated,” Addabbo noted. 

Sweepstakes operators entice customers with a platform to play casino-like games for free. These operators use sites that mimic casinos and video games to promote the sale of Gold Coins in exchange for Sweepstakes Coin tokens so players can enter Sweepstakes for cash prizes and gifts. Since Sweeps Coins are never purchased directly and have no inherent value, their operations remain unregulated, hence the loophole. 

Currently, sweepstakes casinos are allowed in most states, including New York. These sites permit visitors to play slots, table games, and even live dealer games online for free with opportunities to purchase coins that can be redeemed for cash prizes and more.