Users from a number of sweepstakes operators received messages this week informing that the sites will no longer be operating in New York.
One of the industry leaders, PlayFame, sent a notice to customers that read,
We are dissapointed to advise that as of April 30, players in New York will no longer have access to our social gaming services
PlayFame is a social gaming platform that allows users to benefit from blockchain technology to earn in-game rewards that can be converted to cryptocurrency or NFTs.
The platform is decentralized meaning that players have greater control over the game rules, rewards, and transactions. Decentralized casinos have been gaining popularity in recent years but this could be the end of their presence in New York.
In addition to PlayFame, a number of other sweepstakes casinos announced similar moved to their customers. Other platforms to limit players from New York include SportsMillions, Hello Millions, Rolling Riches, and SpinBlitz.
Players currently using the platforms will have only a few weeks to use any unredeemed sweepstakes coins before they are forfeited.
Why are they exiting New York?
The exit moves come as New York has issued bills restricting the operation of sweepstakes casinos and interactive poker platforms.
Bills SB5395 and S9226 prohibit sites using dual-currency systems and place restrictions on social gaming.
The ability to use a dual-currency system is essential to the appeal of social gaming so users can earn their own coins while playing.
SPGA continues to work with NY
The Social and Promotional Gaming Association (SPGA), however, hold out hope that social gaming can continue in the state.
“Innovation in digital entertainment often requires a constructive and informed dialogue with lawmakers and policymakers,” said an SPGA spokesperson. “We saw that dynamic with fantasy sports, and we believe the same approach will help shape smart policy around sweepstakes promotions,” the statement read.
“We know New York officials recognize the need to get this right,” the spokesperson added, “because any decisions about social sweepstakes could have broader implications—not only for promotions by companies like Starbucks and Marriott, but also for any mobile game where consumers spend money, from Candy Crush and Coin Master to Clash of Clans and Monopoly Go.”
No announcement from VGW
Not all operators have issued statements withdrawing from New York. Virtual Gaming Worldwide (VGW) has yet to announce plans to remove New York users from Chumba, Luckyland or Global Poker. VGW has millions of active users and is perhaps the most-used social casino platform in the state.
Yet, the increased legislation in New York may be a sign that other states will also clamp down on social and sweepstakes casinos. Users in New York now have the option of finding land-based casinos or seeking out alternative platforms that continue to operate.
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