Gaming advocacy group Social Gaming Leadership Alliance (SGLA), believes regulation of sweepstakes platforms could raise tens of millions in tax revenue for New York and warned banning sweeps platforms would result in hundreds of millions in lost revenue for the state.
Key Takeaways
- The SGLA warned banning sweepstakes could cost New York $230 million in potential revenue.
- Regulating sweepstakes could generate an additional $80 million in revenue.
- An SGLA-promoted survey found 84% of Americans are in favor of sweepstakes regulation.
The claim is part of a new economic modeling report conducted on behalf of the SGLA that shows the financial impact of online social games in New York. Released by research firm Eilers & Krejcik, the report states the sweepstakes industry contributed over $230 million to the state economy in 2024, including more than $135 million in interchange fees to New York-based card issuers.
The analysis also suggests a regulatory framework could generate $80 million in new annual revenue through operator registration fees, taxes on player purchases, and expanded advertising and market access.
The SGLA also claimed voters favor regulation and taxation over bans, citing a recent survey that found 84% of Americans are in favor of modernizing sweepstakes laws.
SGLA disapproves of Gov. Newsom signing sweepstakes ban bill
The SGLA also expressed disappointment after California Governor Gavin Newsom signed Assembly Bill 831, banning online social games with sweepstakes promotions.
The bill had faced opposition from industry bodies and some tribal interests, but lawmakers and other stakeholders argued sweepstake sites were effectively offering gambling platforms to California residents without being constrained by regulation.
Concerns were also raised about the lack of protection offered to players.
Many other states, including Nevada, Montana, New Jersey, and Louisiana, have taken action against sweepstakes casinos, and others are likely to follow suit. The SGLA said it will continue to promote regulatory frameworks to protect consumers and support economies.
New York bill aims to protect winning sports bettors
Meanwhile, in New York, Assemblymember Alex Bores recently introduced legislation that would ban licensed sportsbooks from limiting or banning wager sizes simply because a player wins too often, unless such measures are tied to responsible gambling or sports integrity concerns. New York would become the first U.S. state to have such protections if legislation were passed.
Bores said fairness was a key concern, noting sportsbooks often restrict successful bettors to protect profit margins, similar to how casinos back off winning players at tables.
The bill is expected to face strong opposition from gambling operators. Enforcing the law would most likely be assigned to the New York State Gaming Commission.
The new bill also reflects growing scrutiny of player protections in the industry. Regulators in other states like Massachusetts and Wyoming are taking a closer look at account restrictions and consumer safeguards.
