N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 912: Prohibition of online sweepstakes games and revenue from illegal markets

§ 912. Prohibition of online sweepstakes games and revenue from

illegal 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

simulates 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

operation, 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

commercial 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.