Bill > A09044

This bill amends New York's racing, pari-mutuel wagering and breeding law to strictly prohibit the operation, promotion, or support of "instant payout loot boxes," which are physical or digital mystery containers purchased in video games or similar platforms that award randomized items which can be directly or indirectly converted into cash, cryptocurrency, non-fungible tokens (NFTs, which are unique digital assets recorded on a blockchain), or other valuable prizes. Under the legislation, "loot boxes" are broadly defined as randomized containers, and the ban extends to third-party companies that might repurchase or monetize the contents for consumers. Furthermore, the bill penalizes financial institutions, payment processors, and advertising affiliates that knowingly support these banned operations after receiving official notice. Violators face steep fines ranging from $10,000 to $100,000 per violation, potential loss or denial of gaming licenses, and administrative enforcement by the New York State Gaming Commission, State Police, or Attorney General, with collected fines going toward problem gambling education and treatment.