New York’s anti-sweepstakes gaming bill is headed to the governor’s desk.
Key Takeaways
- SB 5935 faced little opposition as it went through the New York legislature
- The new legislation would punish sweepstakes operators
- A sweepstakes group is asking Gov. Hochul to veto the bill
Senate Bill 5935 breezed through the Assembly and was passed on Tuesday, needing only a signature from Gov. Kathy Hochul for New York to be the fourth state to ban dual-currency gaming sites.
The legislation “prohibits online sweepstakes games and revenue from illegal markets; sets penalties; provides for enforcement of provisions.”
Introduced by Sen. Joseph Addabbo in March, the bill was passed by the Senate last week before quickly rising through the Assembly, where it was approved following a third reading.
Another anti-sweepstakes bill introduced by Assemblywoman Carrie Woerner had also taken several steps through that side of the legislature before being swapped for Addabbo’s bill. Both were similar in intent and language.
SB 5935 would put into law that anyone found violating the Empire State’s sweepstakes provisions could face $10,000 to $100,000 fines, along with potentially having gaming licenses revoked. Sports betting in New York is legal, but the state doesn’t offer online casino gaming.
A growing list
Sweepstakes gaming operators are currently operating untaxed and unregulated in the Empire State, and regulators have already sent cease-and-desist letters to several companies.
VGW, which owns popular sites Chumba Casino and Luckyland Slots, is among a list of platforms that are planning to stop operating as sweepstakes sites in the market.
These gaming companies have come under fire in several U.S. jurisdictions and by multiple industry groups for offering casino-like games that use virtual currency. While some “coins” are given to customers for free, several sites offer the opportunity to purchase more, and the virtual currency can be exchanged for cash and prizes.
If signed into law, New York will join Montana, Connecticut, and Nevada among the list of states to recently pass laws banning sweepstakes, also called social gaming operators. Lawmakers in Mississippi, Florida, and Maryland opted not to pass anti-sweepstakes efforts this session.
Louisiana’s legislature did approve a bill that would’ve banned online sweepstakes companies from operating in the Pelican State, but Gov. Jeff Landry vetoed the legislation, citing it wasn’t necessary.
A few days later, the Louisiana Gaming Control Board announced it had sent 40 cease-and-desist letters to offshore and sweepstakes operators. The Mississippi Gaming Commission sent orders to end operations to 10 illegal gaming sites on Tuesday.
Pushing back
The Social and Promotional Gaming Association (SPGA) responded to the Assembly’s approval by “strongly urging” Hochul to veto New York’s bill. The group argues that the bills is “shortsighted” and will hurt innovation, tech development, and investments in the Empire State.
“The bill doesn’t just target sweepstakes,” an SPGA spokesperson said. “It sends a chilling message to anyone looking to invest in the next generation. Nearly every form of online gaming we know today, including companies like FanDuel, a New York-based success story, began as pre-regulated concepts. This legislation criminalizes that innovation cycle.”
NY SWEEPS BAN CRIMINALIZES VENTURE INVESTMENT IN THE EMPIRE STATE, DEMANDS HOCHUL VETO pic.twitter.com/A41kt9wIGu
— theSPGA (@theSPGA) June 18, 2025
The SPGA criticized the legislation for leaving the definition of an “offending game” to the discretion of the New York Gaming Commission.
