NY Penal L § 156.40 (2021)
2021 New York Laws PEN - Penal Part 3 - Specific Offenses Title J - Offenses Involving Theft Article 156 - Offenses Involving Computers; Definition of Terms 156.40 - Operating an Unlawful Electronic Sweepstakes.

§ 156.40 Operating an unlawful electronic sweepstakes.   1.  As  used  in this section the following words and terms shall have the following meanings:  (a) "Electronic machine or device" means a mechanically,  electrically or  electronically  operated  machine or device that is owned, leased or otherwise possessed  by  a  sweepstakes  sponsor  or  promoter,  or  any sponsors,  promoters,  partners, affiliates, subsidiaries or contractors thereof; that is intended to be used by a sweepstakes entrant; that uses energy; and that displays the results of a game entry or game outcome to a participant on a screen or other mechanism  at  a  business  location, including a private club; provided, that an electronic machine or device may, without limitation:  (1) be server-based;  (2)  use  a  simulated game terminal as a representation of the prizes associated with the results of the sweepstakes entries;  (3) utilize software  such  that  the  simulated  game  influences  or determines the winning or value of the prize;  (4) select prizes from a predetermined finite pool of entries;  (5)  utilize  a  mechanism that reveals the content of a predetermined sweepstakes entry;  (6) predetermine the  prize  results  and  stores  those  results  for delivery at the time the sweepstakes entry results are revealed;  (7) utilize software to create a game result;  (8)  require  deposit  of  any money, coin or token, or the use of any credit card, debit card, prepaid card or any other method of payment  to activate the electronic machine or device;  (9)  require  direct payment into the electronic machine or device, or remote activation of the electronic machine or device;  (10) require purchase of a related product having legitimate value;  (11) reveal the prize incrementally, even though it may not  influence if a prize is awarded or the value of any prize awarded;  (12) determine and associate the prize with an entry or entries at the time the sweepstakes is entered; or  (13)  be  a  slot  machine or other form of electrical, mechanical, or computer game.  (b) "Enter" or "entry" means the act or  process  by  which  a  person becomes eligible to receive any prize offered in a sweepstakes.  (c)  "Entertaining  display"  means any visual information, capable of being seen by a sweepstakes entrant, that takes the form of actual  game play or simulated game play.  (d)  "Prize" means any gift, award, gratuity, good, service, credit or anything else of value, which may be transferred to  a  person,  whether possession of the prize is actually transferred, or placed on an account or other record as evidence of the intent to transfer the prize.  (e) "Sweepstakes" means any game, advertising scheme or plan, or other promotion, which, with or without payment of any consideration, a person may  enter  to  win  or  become  eligible  to  receive  any  prize,  the determination of which is based upon chance.   2. A person is guilty of operating an unlawful electronic  sweepstakes when  he or she knowingly possesses with the intent to operate, or place into operation, an electronic machine or device to:  (a) conduct a sweepstakes through the use of an entertaining  display, including the entry process or the reveal of a prize; or  (b)  promote  a  sweepstakes  that  is conducted through the use of an entertaining display, including the entry process or  the  reveal  of  a prize.   3.  Nothing  in  this  section  shall be construed to make illegal any activity which is lawfully conducted as the New York state  lottery  for  education   as  authorized  by  article  thirty-four  of  the  tax  law; pari-mutuel wagering on horse  races  as  authorized  by  articles  two, three,  four,  five-A,  and  ten of the racing, pari-mutuel wagering and breeding  law;  the  game  of  bingo  as  authorized pursuant to article fourteen-H of the general municipal law; games of chance  as  authorized pursuant  to  article  nine-A  of  the  general municipal law; gaming as authorized by article thirteen of the racing, pari-mutuel  wagering  and breeding law; or pursuant to the federal Indian Gaming Regulatory Act.   Operating an unlawful electronic sweepstakes is a class E felony.