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New York State Liquor Authority Releases Statement re: Gambling on Premises

January 24, 2022

We learned that the New York State Liquor Authority (SLA) released a statement advising all businesses that possess a liquor license that any promotion of online sports wagering would be considered a violation of the state ABC Law and that they will be subject to charges if they “promote gambling at their premises in any way, or allow others to promote gambling at their premises”…

This interpretation eliminates the ability of online sports books to partner with local taverns, restaurants or even entertainment and sports venues (Yankee stadium, Madison Square Garden, etc.) or any establishment that has a liquor license to promote their business. This could also hamper the ability of affiliates to work with local business to drive traffic to the OSBs.

We wanted to make you aware of this issue and also get your input on how/if iDEA should engage on the matter. The most logical first step would be to contact the NYSGC and see if they are aware of the situation. Simultaneously, it would be good to alert Senator Addabbo and Representative Pretlow (just as an FYI for now). Ideally, it would be best to have this handled administratively, rather than needing to rely on a legislative fix. Please contact John Pappas (jpappas@ideagrowth.org) with your thoughts regarding iDEA reaching out to the Commission and the lawmakers as a first step.

Below is the full language from the ABC Law Section 106(6) referenced in SLA’s notice

6. No  person  licensed  to  sell alcoholic beverages shall suffer or

permit any gambling on the licensed premises, or suffer or  permit  such

premises  to become disorderly. The use of the licensed premises, or any

part thereof, for the sale of lottery tickets, playing of bingo or games

of chance, or as a simulcast facility or simulcast theater  pursuant  to

the  racing, pari-mutuel wagering and breeding law, when duly authorized

and lawfully conducted thereon, shall not constitute gambling within the

meaning of this subdivision.

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