S T A T E O F N E W Y O R K
________________________________________________________________________
9044--B
2025-2026 Regular Sessions
I N A S S E M B L Y
September 5, 2025
___________
Introduced by M. of A. VANEL -- read once and referred to the Committee
on Consumer Affairs and Protection -- recommitted to the Committee on
Consumer Affairs and Protection in accordance with Assembly Rule 3,
sec. 2 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- again reported from said
committee with amendments, ordered reprinted as amended and recommit-
ted to said committee
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to prohibited practices related to loot boxes
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The racing, pari-mutuel wagering and breeding law is
amended by adding a new section 913 to read as follows:
§ 913. PROHIBITION OF INSTANT PAYOUT LOOT BOXES AND REVENUE FROM ILLE-
GAL MARKETS. 1. DEFINITIONS. THE FOLLOWING TERMS SHALL HAVE THE FOLLOW-
ING MEANINGS:
(A) "LOOT BOX" SHALL MEAN ANY PHYSICAL OR DIGITAL CONTAINER OR EQUIV-
ALENT THAT, WHEN OPENED, AWARDS THE PURCHASER ONE OR MORE RANDOMIZED
REWARDS.
(B) "PERSON" SHALL MEAN ANY NATURAL PERSON, ENTITY, OR GROUP OF
PERSONS OR ENTITIES ACTING IN CONCERT, INCLUDING BUT NOT LIMITED TO ANY
THIRD-PARTY PROVIDERS, AFFILIATED ENTITIES, SUBSIDIARIES, PARENT COMPA-
NIES, JOINT VENTURES, PARTNERSHIPS, AGENTS, OR EMPLOYEES THEREOF, OR ANY
ENTITY OR INDIVIDUAL ACTING AT THE DIRECTION OF, IN COOPERATION WITH,
UNDER CONTRACT OR IN PARTNERSHIP WITH, OR FINANCIALLY BENEFITTING FROM
ANOTHER PERSON OR ENTITY. MULTIPLE PERSONS IN PARTNERSHIP OR UNDER
CONTRACT, WHERE ONE OR MORE PERSONS FINANCIALLY BENEFIT FROM SUCH PART-
NERSHIP OR CONTRACT SHALL BE TREATED AS ONE PERSON FOR PURPOSES OF THIS
SECTION.
(C) "LIQUID DIGITAL ITEM" SHALL MEAN ANY DIGITAL ITEM, OR ANY DIGITAL
REPRESENTATION OF A PHYSICAL ITEM THAT IS HELD IN THE CUSTODY OF, OR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13589-03-6
A. 9044--B 2
OTHERWISE BY OR ON BEHALF OF, THE PLATFORM OR SERVICE OFFERING THE LOOT
BOX OR ANY AFFILIATED ENTITY FOR THE BENEFIT OF THE CONSUMER, FOR WHICH
THE PLATFORM OFFERING THE LOOT BOX OR ANY AFFILIATED ENTITY DIRECTLY OR
INDIRECTLY PROVIDES, ENABLES, FACILITATES, MATERIALLY ASSISTS, OR MAKES
READILY AVAILABLE A MEANS FOR A CONSUMER TO SELL, RESELL, TRANSFER,
EXCHANGE, AUCTION, OR OTHERWISE MONETIZE THE ITEM OR THE PHYSICAL ITEM
IT REPRESENTS, INCLUDING THROUGH ANY THIRD-PARTY MARKETPLACE, EXCHANGE,
BROKER, OR OTHER INTERMEDIARY.
(D) "REPURCHASE" SHALL MEAN THE ACT OF OFFERING A CONSUMER A THING OF
VALUE IN EXCHANGE FOR SOME OR ALL OF THE CONTENTS OF A LOOT BOX.
(E) "THING OF VALUE" SHALL MEAN MONEY, CASH EQUIVALENTS, CRYPTOCURREN-
CY, INCLUDING NON-FUNGIBLE TOKENS, ANOTHER LOOT BOX OR SIMILAR ITEM, A
LIQUID DIGITAL ITEM, ANY RIGHT, PRIVILEGE, STATUS, SERVICE, EXPERIENCE,
OR ACCESS, POINTS OR CREDITS THAT CAN BE REDEEMED TO PURCHASE OR OBTAIN
ANY OF THE FOREGOING OR ANY OTHER ITEM, OR ANY OTHER ITEM, BENEFIT, OR
INCENTIVE OF VALUE, INCLUDING ANY INCENTIVE USED PRIMARILY AS AN ARTI-
FICE OR SUBTERFUGE TO EVADE THE REQUIREMENTS OF THIS SECTION.
(F) "INSTANT PAYOUT LOOT BOX" SHALL MEAN A LOOT BOX THAT, WHETHER
IMMEDIATELY, UPON THE SATISFACTION OF A CONDITION, OR OTHERWISE ON A
DEFERRED BASIS, AWARDS A THING OF VALUE, OR THAT ENABLES A CONSUMER, AT
ANY TIME AND WHETHER DIRECTLY OR INDIRECTLY, TO SELL, REDEEM, EXCHANGE,
TRANSFER, OR OTHERWISE CONVERT SOME OR ALL OF ITS CONTENTS INTO A THING
OF VALUE FOR SUCH CONSUMER OR SUCH CONSUMER'S BENEFIT, INCLUDING THROUGH
A REPURCHASE BY THE PERSON THAT OPERATES, CONDUCTS, OR PROMOTES SUCH
LOOT BOX. A CONSUMER'S RECEIPT, RETENTION, OR USE OF THE CONTENTS OF A
LOOT BOX SHALL NOT, BY ITSELF, MAKE A LOOT BOX AN INSTANT PAYOUT LOOT
BOX, NOR SHALL A TRANSACTION IN WHICH A CONSUMER CONVERTS SUCH CONTENTS
INTO A THING OF VALUE WITHOUT THE PARTICIPATION OF, OR ANY CONSIDERATION
TO, THE PERSON THAT OPERATES, CONDUCTS, OR PROMOTES SUCH LOOT BOX.
2. PROHIBITION. (A) IT SHALL BE UNLAWFUL FOR ANY APPLICANT, LICENSED
ENTITY, GAMING EMPLOYEE, KEY EMPLOYEE, INDIVIDUAL INVESTOR OR INVESTMENT
FIRM, BOARD MEMBER, OR ANY OTHER PERSON OR ENTITY TO OPERATE, CONDUCT,
OR PROMOTE INSTANT PAYOUT LOOT BOXES TO NEW YORK CONSUMERS. NOR MAY ANY
THIRD-PARTY PROVIDER, AFFILIATED ENTITY, SUBSIDIARY, PARENT COMPANY,
JOINT VENTURE, PARTNERSHIP, AGENT, OR EMPLOYEE OF SUCH PERSON, OR ANOTH-
ER THROUGH ANY OTHER CONTRACTUAL ARRANGEMENT REPURCHASE THE CONTENTS OF
ANY LOOT BOX FROM A NEW YORK CONSUMER.
(B) NO LOOT BOX SHALL CONTAIN MONEY OR ANY CASH EQUIVALENT OR CRYPTO-
CURRENCY, INCLUDING NON-FUNGIBLE TOKENS, ANY STATUS, TIER, MEMBERSHIP
LEVEL, OR CREDENTIAL, OR POINTS THAT CAN BE REDEEMED TO PURCHASE ANOTHER
LOOT BOX, ITEM, CASH OR CASH EQUIVALENT, CRYPTOCURRENCY, A LIQUID
DIGITAL ITEM, OR OTHER THING OF VALUE.
(C) IT SHALL BE UNLAWFUL FOR ANY APPLICANT, LICENSED ENTITY, FINANCIAL
INSTITUTION, PAYMENT PROCESSOR, GEOLOCATION PROVIDER, GAMING CONTENT
SUPPLIER, PLATFORM PROVIDER, OR MEDIA AFFILIATE TO KNOWINGLY SUPPORT THE
OPERATION, CONDUCT, OR PROMOTION OF INSTANT PAYOUT LOOT BOXES WITHIN THE
STATE OF NEW YORK. FOR PURPOSES OF THIS PARAGRAPH, A PERSON SHALL BE
DEEMED TO ACT KNOWINGLY IF SUCH PERSON (I) HAS ACTUAL KNOWLEDGE THAT THE
LOOT BOXES SUCH PERSON SUPPORTS ARE PROHIBITED UNDER THIS SECTION, OR
(II) HAS RECEIVED WRITTEN NOTICE FROM THE STATE GAMING COMMISSION, THE
STATE POLICE, OR THE ATTORNEY GENERAL IDENTIFYING SUCH LOOT BOXES AS
PROHIBITED UNDER THIS SECTION AND FAILS TO CEASE SUCH SUPPORT WITHIN
THIRTY DAYS AFTER RECEIPT OF SUCH NOTICE. A PERSON SHALL NOT BE DEEMED
TO ACT KNOWINGLY SOLELY BECAUSE SUCH PERSON PROVIDES FINANCIAL, PAYMENT
PROCESSING, GEOLOCATION, CONTENT, PLATFORM, HOSTING, ADVERTISING, OR
A. 9044--B 3
SIMILAR SERVICES IN THE ORDINARY COURSE OF BUSINESS TO A PERSON THAT
OPERATES, CONDUCTS, OR PROMOTES LOOT BOXES.
3. PENALTIES. (A) ANY APPLICANT, LICENSED ENTITY, GAMING EMPLOYEE, KEY
EMPLOYEE, INDIVIDUAL INVESTOR OR INVESTMENT FIRM, BOARD MEMBER, OR ANY
OTHER PERSON OR ENTITY FOUND IN VIOLATION OF THIS SECTION SHALL BE
SUBJECT TO A FINE OF NOT LESS THAN TEN THOUSAND DOLLARS AND NOT MORE
THAN ONE HUNDRED THOUSAND DOLLARS FOR EACH VIOLATION AND SHALL BE
SUBJECT TO THE LOSS OF A GAMING LICENSE AND/OR BE INELIGIBLE FOR A
GAMING LICENSE.
(B) ALL FINES RESULTING FROM VIOLATIONS OF THIS SECTION SHALL BE
COLLECTED BY THE STATE GAMING COMMISSION AND DEPOSITED INTO THE COMMER-
CIAL GAMING REVENUE FUND, ESTABLISHED IN SECTION NINETY-SEVEN-NNNN OF
THE STATE FINANCE LAW, TO BE DISTRIBUTED FOR PROBLEM GAMBLING EDUCATION
AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF SUBDIVISION FOUR OF
SUCH SECTION.
4. ENFORCEMENT. (A) THE STATE GAMING COMMISSION, THE STATE POLICE, OR
THE ATTORNEY GENERAL'S OFFICE SHALL HAVE THE AUTHORITY TO ENFORCE THE
PROVISIONS OF THIS SECTION.
(B) THE STATE GAMING COMMISSION, STATE POLICE OR ATTORNEY GENERAL'S
OFFICE MAY CONDUCT INVESTIGATIONS, HOLD HEARINGS, ISSUE CEASE AND DESIST
LETTERS, AND ISSUE SUBPOENAS TO ENSURE COMPLIANCE WITH THE PROVISIONS OF
THIS SECTION.
§ 2. This act shall take effect immediately.