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Bill

A 10709

Enacts the "protecting our kids from gamification of gambling act"

2025 Regular Session Introduced by John McDonald and 4 co-sponsors

The bill prohibits online gaming add-ons that gamify gambling for minors and requires robust age verification, with enforcement by the Attorney General for deceptive practices.

REFERRED TO CONSUMER AFFAIRS AND PROTECTION
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Bill Summary · A 10709

Summary of Bill A. 10709 (2025-2026) — “Protecting Our Kids from Gamification of Gambling Act”

Purpose and Intent

  • The bill proposes new rules under the New York General Business Law to restrict online gaming-related gambling activities accessed by minors through social gaming platforms.
  • It aims to prevent minors from engaging in add-on transactions that resemble gambling (e.g., loot boxes, pay-to-win mechanics) within online gaming environments.

Key Provisions and Changes

New Statutory Section: General Business Law § 396-kkk

  1. Definitions (Section 2, Subdivision 1)

    • Add-on transaction: An amount paid to a social gaming platform operator for money or in-game proxies (e.g., virtual currency) that unlocks features or enhances entertainment value.
    • Loot box: An add-on transaction with randomization that unlocks features, enhances entertainment, or enables additional add-on transactions whose content is unknown until after the purchase.
    • Minor: Individual under 18 years old located in New York.
    • Online gaming-related gambling: Activities in video game environments involving real money, in-game items or currency, including:
      • Purchasing random, chance-based rewards (loot boxes, etc.) with real money.
      • Trading or betting using in-game items acquired with real money (e.g., skins).
    • Operator: Any person or entity operating or providing a social gaming platform.
    • Pay-to-win microtransaction: An add-on transaction that gives a user a competitive advantage or eases progression, potentially changing how the game is played or won.
    • Skins: In-game items (cosmetic) purchasable with real or virtual currency that can sometimes be traded or sold publicly.
    • Social gaming platform: A broad, immersive digital space combining gameplay, social features, and in-game purchases across devices (console, PC, mobile, VR, etc.).
    • User: A New York user of a social gaming platform, not acting as an operator or affiliate.

  2. Unlawful Online Gaming-Related Gambling for Minors (Section 2)

    • Operators may not provide services that enable online gaming-related gambling to a user unless they have reasonably determined the user is not a minor, using age determination and age assurance standards promulgated by the attorney general.

  3. Age Determination and Data Use (Section 2)

    • Information collected for age verification must be used solely for determining age and deleted immediately after the check (unless needed for compliance with law/regulation).

  4. Enforcement and Standards (Section 2)

    • Violations constitute an unlawful deceptive act or practice under existing consumer protection law.
    • The Attorney General can bring civil actions in the State's name to enforce compliance.

  5. Complaints and Regulation (Section 2)

    • The Attorney General must maintain a public website to receive complaints, information, or referrals about a platform’s compliance or non-compliance.
    • The Attorney General is authorized to promulgate regulations necessary to implement the act, including leveraging or referencing existing age-determination regulations.

Affected Parties

  • Operators/Providers: Social gaming platforms and their services offered in New York would be subject to age-verification obligations and prohibitions on providing online gaming-related gambling to minors.
  • Minors (Under 18 in New York): Prohibited from engaging in such add-on transactions or gambling-like features within social gaming platforms.
  • General Public and Consumers: Potentially affected through enforcement actions and heightened transparency via the AG’s complaint portal.
  • Attorney General: Assigned regulatory and enforcement responsibilities, including rulemaking and civil actions.

Timeline and Effective Date

  • Effectiveness: The act provides that it takes effect 180 days after becoming law.
  • Immediate Regulatory Action: The AG may implement necessary regulations and immediate rule changes in anticipation of the effective date.

Procedural History

  • Introduced in the Assembly on March 26, 2026 by Assemblymember Steck (primary) with co-sponsors Jordan Wright, Phil Steck, and Yudelka Tapia.
  • Referred to the Committee on Consumer Affairs and Protection.

Practical Implications

  • Platforms operating in New York would need robust age-verification processes to ensure minors are blocked from gambling-like add-ons (loot boxes, pay-to-win features, etc.).
  • Data collected for age checks must be minimized and discarded promptly after verification.
  • Enforcement could involve civil actions by the Attorney General for deceptive practices, potentially influencing platform business models that rely on randomized microtransactions or pay-to-win mechanics.
  • The act signals a statewide stance against gamified gambling elements targeted at or accessible to minors within online games.

Compiled from official sources — confirm details with the bill’s official record.

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