New York's Stance on Sweepstakes and Sports Betting Laws

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00:00Sweepstakes discussion boy. This is like the story of the year thus far Sam with the amount of different, you know, sweepstakes talks

00:06We've had New York usually sets trends for a lot of different things taxes sports betting and a lot more

00:11They're saying no to sweepstakes, aren't they?

00:14Yeah, there's certainly trying to again

00:16This is another this has been a really big story because it's been a big question of how do we handle this?

00:21How do we even approach it these sweepstakes gambling companies want to say? Hey, we're not a sports book. We're not a

00:28Casino, we allow people the option to do that

00:31But we because we give them a free option is essentially a loophole which lets people bet and lets people

00:37Kind of skirt around maybe some gambling laws and provisions because they're calling it a sweepstake

00:42So states are starting to say, okay, we think that's actually sports betting in New York is definitely one of them

00:47They have this new bill. It's target targeting this model

00:51Which could be gaining traction again, New York

00:53Like you said is very big

00:54State and what they do kind of sets the precedent for other states. It's backed by Senator Joseph Adabo

01:00Who is vowing to shut down these operators? He calls it unregulated gaming

01:05They allow you to give these coins and credits which you then connect then redeem for real cash

01:11But he thinks it has it's gonna be able to gain real traction in the Senate again

01:15It's very hard to get gambling changes passed. Once you kind of passed an original sports betting bill

01:19It's been harder to lower the tax rate

01:21But this is something I think the industry will be very supportive as well

01:25The group that is kind of coalesced around the sweepstakes model is is pushing back on their own, right?

01:30Saying the lawmakers rushed this bill forward. They're not listening to each side

01:34They argue that this could scare off investment in the state and innovation

01:37But those arguments you hear a lot about these kind of alternative models that have popped up and you're right

01:43It's not just a New York thing at least seven states now have kind of introduced some sort of legislation

01:47That could combat this but again none has actually passed it forward

01:51So if New York becomes the first state where they successfully do this get rid of sweepstakes

01:55It could set reverberations throughout the rest of the industry

01:58Which is very much interested in the sweepstakes model right now as states are, you know

02:03Maybe not being able to legalize sports betting or we're running out of states to legalize sports betting

02:08We've seen these alternative models pop up and certainly more alternatives with the prediction markets the fantasy sports aspect of it

02:14everything that's kind of popped up and it's another one of those instances where you're seeing the regulation kind of come after and

02:20People just you know trying to address things after they happen. We'll see if they can get it done in New York

02:25It's certainly a very tough place to get bills passed

02:28But again because it has the support of the gambling industry as well as a major center. It looks pretty good for its prospects