ALBANY, N.Y. -- The New York State Senate has passed a bill that seeks to regulate out-of-state and foreign companies that offer gambling in New York via the Internet. SB 4174 requires that foreign corporations doing business in New York by serving internet gamblers who are NY residents must register with the state. Another bill which has not yet been voted on may require the posting of prize payment bond to assure that winnings of New York residents will be paid.
State Senate Majority Leader Joseph Bruno says, "Under this legislation, New York would become the first state in the nation to protect consumers against Internet gambling schemes." He adds that the bill "recognizes that companies based on the Internet, like any other corporation conducting business in this state, must comply with our laws and regulations."
Sen. Bill Larkin, the bill's sponsor, says the companies would have to provide the names and addresses of their officers so that scam victims and investigators could pursue companies who rip-off consumers.
Heather Bennett, Chief Counsel for the NY Senate Committee on Racing and Wagering told IGN that she was unsure if a companion bill, A8044 sponsored by Assemblyman Crowley will be enacted this session.
IGN continues to laud the New York Senate for taking a reasoned, well thought out approach to protecting consumers in this complicated world on internet gambling.