SPGA defiant after New York sweeps exit

People who use sweepstakes casinos in New York have been told they will no longer be able to use the casinos in the state.

Many sites told users last week that the casinos were going to be departing the New York market in April.

One of companies leaving the state is PlayFame, which notified its customers: “We are disappointed to advise that as of 30 April, players in New York will no longer have access to our social gaming services.

It was a difficult decision for us and we recognize that this may be unpleasant news.”

Like several states across the US, the sweepstakes vertical has faced intense scrutiny from politicians.

SB5935, a bill that would ban sweepstakes gaming sites that use a dual-currency system and sanction suppliers or affiliates that engage with sweepstakes operators in New York, moved out of committee last week and now lies with the state’s Senate.

The Social and Promotional Gaming Association (SPGA) denounced the measure in a statement Wednesday, stating that sweepstakes sites are operating under the rule of law if a bill is needed to specifically outlaw sweeps.

There have been many departures, but the organization was defiant and said the sweepstakes operators are working with the New York Gaming Commission to “adjust their approach” in the state.

An SPGA representative added, “Innovation in digital entertainment usually involves a constructive and informed dialog with lawmakers and policymakers. “We’ve seen that dynamic with fantasy sports and believe the same approach will help mold intelligent policy around sweepstakes promotions.”

“We know New York officials understand the importance of getting this right. “Any decision on social sweepstakes could have broader implications — not only for promotions run by companies like Starbucks and Marriott, but for any mobile game where consumers spend money, from Candy Crush and Coin Master to Clash of Clans and Monopoly Go.”

VGW, the New York market leader, has not communicated to players about the future of its Chumba, Luckyland or Global Poker brands.