SPGA Says New York’s Proposed Sweeps Ban Would Hurt Small Businesses

The Social and Promotional Games Association (SPGA), an industry body promoting a responsible sweepstakes sector and championing the rights of the sweepstakes industry, has responded to New York’s mulled sweepstakes ban.

The association firmly opposed the measure, arguing that it would hurt smaller businesses in the state.

SB 5935 Seeks to Put an End to Sweepstakes

Senator Joseph Addabbo, a prominent promoter of regulated gambling who has championed the expansion of the Empire State’s legal gaming industry for years, is also one of the biggest opponents of social casinos.

Addabbo, who sponsored the bill seeking to outlaw such operators, is among the numerous industry critics believing that sweepstakes constitute illegal gambling. Social casinos, for context, usually allow players to gamble with virtual currencies they can either purchase or earn in a variety of ways.

Since sweepstakes do not technically require players to spend money, proponents of the industry have insisted that these products do not constitute gambling.

Others, however, have highlighted the similarities between sweepstakes and other gaming verticals, calling social casinos an unlicensed form of gambling.

SPGA: The Ban Would Be a Colossal Waste of Resources

In its response to SB 5935, the SPGA said that it “appreciates New York lawmakers’ formal recognition that social sweepstakes are a legal form of gambling.” The body emphasized that the decision to ban sweepstakes means that they are legal entertainment since “you don’t need to outlaw something if it is already illegal.”

The SPGA continued that its appreciation ends here and critiqued the New York government for meddling with customers’ pastimes and dictating what games they can play on their phones. The industry body insisted that this bill would not only infringe on players’ personal freedoms but would also be a “colossal waste of government resources.”

To make matters worse, the bill could criminalize promotional sweepstakes used by small businesses across the state, hurting local shops and jeopardizing thousands of jobs in an already unstable economic climate.

The SPGA noted that New York should instead focus on sensible regulation and taxation of sweepstakes games.

We stand ready to work with New York policymakers who are willing to develop a more sensible, balanced approach that protects the rights of consumers and not the special interests of a small handful of corporate interests.

SPGA statement

Authorities Push Back Against Sweeps Despite Their Popularity

The proposed ban on sweepstakes in New York comes amid continued pushback against the sweepstakes sector. While the SPGA has underscored its members’ commitment to offering a responsible form of entertainment, most American jurisdictions have so far been unwilling to take their regulatory requests seriously.

The sole state to propose actually regulating sweepstakes so far is New Jersey, although the future of the proposal remains uncertain.

In the meantime, states other than New York have implemented their own bans on social casino products.