NY Senate Threatens Businesses, Innovation, and Investment By Rushing SB5935 Through Committee

The Social and Promotional Games Association strongly denounces the blatant overreach of Senator Joseph P. Addabbo Jr.’s SB5935, which was rushed through the NYS Senate Racing, Gaming, and Wagering Committee without opposition or proper scrutiny. 

This legislation recklessly mischaracterizes sweepstakes gaming and threatens legitimate businesses with unnecessary and harmful regulation.

New York lawmakers are dangerously conflating legal promotional sweepstakes with gambling, creating a broad and misguided precedent that could devastate industries far beyond social gaming. 

From fast-food chains to app developers, companies have long relied on sweepstakes as a lawful marketing tool. By attacking this widely accepted business model, the bill jeopardizes businesses operating within clear legal boundaries.

Even more alarming is the legislature’s disregard for industry expertise. Instead of engaging stakeholders, lawmakers have fast-tracked a bill that would not only undermine the sweepstakes sector, but also send a chilling message to venture capitalists and tech entrepreneurs. 

Criminalizing legitimate business innovation threatens to drive investors away, putting New York’s entire tech economy—including AI and other emerging technologies—at a severe disadvantage compared to more forward-thinking states.

SPGA calls on New York legislators to stop this reckless march toward economic self-sabotage and reject this deeply flawed bill before it inflicts lasting damage.