New York has officially put the kibosh on running online sweepstakes casinos and sportsbooks in the state.
- New York enacted a new law banning the operation and promotion of online sweepstakes casinos and sportsbooks, imposing fines of up to $100,000 per violation.
- The immediate effect of the law appears to have prompted several sweeps operators, including Novig and ProphetX, to quickly restrict access for New York users.
- With the move, New York joins other states cracking down on “dual currency” sweepstakes gambling, citing a lack of regulatory safeguards.
Gov. Kathy Hochul signed Senate Bill 5935 into law on Friday, legislation that takes immediate effect and makes it illegal in the state to operate or promote online sweepstakes games.
The bill also makes it unlawful for a variety of other entities to support sweepstakes casinos in New York, including financial institutions, geolocation providers, and media affiliates.
Sweepstakes ban scorecard:
— Daniel Wallach (@WALLACHLEGAL) December 6, 2025
Legislative bans (6 states)
CA, CT, MT, NJ, NJ & NV
Cease-and-desists (13 states)
MI, CT, WV, MD, NY, NJ, PA, DE, MS, LA, AZ, MN & TN
State AG Action (2 states)
- Louisiana AG Opinion
- WV subpoenas issued https://t.co/pCf2IVONWG
Anyone caught breaking the new law could face fines of $10,000 to $100,000 for each violation, as well as (if applicable) the loss of their gaming license or eligibility for a gaming license.
So, while online sports betting in New York remains legal when done via licensed operators, sweeps are now officially illegal.
The signing appears to have prompted a hasty exit by some sweep operators.
New York-based users of sweepstakes-style sports prediction markets Novig and ProphetX reported on social media that their access had already been restricted in the state shortly after the bill became law.
Join the club
Operators of sweepstakes casinos have come under fire over the past year or so from lawmakers and regulators across the U.S.
Lawmakers in several states, including California, have passed legislation banning sweeps. Gaming regulators in others, meanwhile, have sent cease-and-desist notices to operators.
The Empire State has been among those jurisdictions taking more and more action against forms of unauthorized or unwanted online gambling, including sweeps and prediction markets.
For example, New York Attorney General Letitia James announced in June that she had sent cease-and-desist letters to more than two dozen sweeps platforms, including Chumba and Fliff.
man, thanks for nothing @GovKathyHochul. was it really necessary to ban @Novig & @PlayProphetX in New York? terrible news waking up and seeing this. pic.twitter.com/GuPc6SiWaE
— NBA Stat Junkie (@nba_daily824) December 6, 2025
New York's anti-sweeps bill then passed the state legislature in June. However, it was only delivered to Hochul on Dec. 1, according to the Senate's website.
The governor finally signed the bill into law on Friday, officially putting New York in the company of other states that have formally outlawed the “dual currency” form of online gambling.
“The guardrails and the safeguards that we painstakingly take efforts to do when we do mobile sports betting or iGaming are not there with most of these sweepstakes casino sites,” said Democratic Sen. Joseph Addabbo Jr., S.B. 5935’s sponsor, in an interview with Covers in March.
