2023 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.