The New York Senate has passed the ‘No Gambling Ads For Kids Act.’ Senators unanimously approved the act on Monday in a 60-0 vote. The bill will now move to the Assembly for consideration.
If passed there, Governor Kathy Hochul will almost certainly sign off on the legislation. Hochul unveiled her own plan to reduce underage and problem gambling in April.
“We need strong regulatory safeguards to prevent those under 21 from gambling,” Hochul said.
What Is In The Bill?
The terms of the bill state that it would be illegal “for a social media platform to promote advertisements for online gaming-related gambling, online sweepstakes gaming,
sports-related gambling, or traditional online gambling unless an operator has reasonably determined that the user is not a minor.”
Its definition of gaming-related gambling includes “exchanging real money for random, chance-based rewards in games, such as loot boxes and other add-on transactions.”
It also includes skins trading and gambling. If approved, it would mean gaming companies could face sanctions if promoting games that contain loot boxes on social media.
Any violation would be viewed as false advertising and may be enforced by the Attorney General or the New York State Gaming Commission.
In addition to targeting gambling in video games, it also prohibits targeting minors with ads for prediction markets, sweepstakes casinos, and sportsbooks.
Lawmakers Seek Nationwide Ad Ban
It is part of several efforts from lawmakers to clamp down on gambling companies targeting minors.
A federal bill, the Gaming Advertisement to Minors Enforcement (GAME) Act, was introduced earlier this month. It seeks to implement a nationwide ban on targeted advertising of gambling to kids.
Several states already have bans in place, including Massachusetts, Virginia, North Carolina, Indiana, and Missouri.
The proposal in New York is more sweeping in that it also includes loot boxes and prediction markets in its definition of gambling.
New York’s Attorney General is also involved in a lawsuit against Valve, claiming that the company’s loot boxes are encouraging illegal underage gambling. Valve filed a motion to dismiss the case last month, claiming that loot boxes are akin to baseball cards, which no one argues are gambling.