The Empire State is putting the full-court press on sweepstakes casinos and sportsbooks, with the New York Senate now approving a bill that would definitively outlaw those businesses and their virtual currencies.
Members of the New York Senate passed Senate Bill 5935 on Wednesday, advancing it to the state Assembly for further scrutiny and potential amendments.
The legislation would prohibit "online sweepstakes games and revenue from illegal markets," making it illegal for anyone to "operate, conduct or promote" sweeps games within New York state.
S.B. 5935 would also make it illegal for various businesses, including banks and media affiliates, to support online sweepstakes casinos in the state.
Key Points
- An anti-sweepstakes casino bill has now passed the New York Senate and will be considered by the state Assembly.
- The bill would prohibit the operation of online sweeps businesses in the state, with its passage following that of similar legislation in other states.
- The bill is also progressing in the wake of New York regulators and law enforcement taking action against sweeps, as 26 platforms have already agreed to stop selling virtual coins in the state.
In advancing the bill, New York lawmakers are joining their peers in Connecticut, Louisiana, and Montana in taking legislative action against sweeps operators. While New York’s bill still has a ways to go, the measure appears to have support both in and out of the legislature.
“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.
The bill's passage through the Senate follows New York Attorney General Letitia James' announcing last week that she sent cease-and-desist letters to more than two dozen online sweepstakes casinos and sportsbooks, including Chumba and Fliff.
"There are operators conducting business inside our State that are running afoul of New York’s penal restrictions on unlawful gambling. Staff have made several referrals to law enforcement and is assisting in case development."
— NYS Gaming Commission (@NYSGamingComm) January 27, 2025
According to the AG’s office, “betting cash-redeemable virtual coins on games of chance constitutes gambling,” no matter how operators try to have it characterized. And, in response to James’ letters, the 26 platforms she targeted are ending the sale of sweeps coins in the state, a press release said.
"New York law prohibits online platforms from offering gambling that involves risking something of value, including virtual coins that can be redeemed for cash or prizes," the release added.
Crackdown confirmed
S.B. 5935 is making progress even with the existing prohibition already on the books. The legislation says anyone found in violation of its provisions could face fines of between $10,000 to $100,000 and potentially lose any gaming license they possess.
James’ announcement last week also followed New York State Gaming Commission Chair Brian O'Dwyer saying in January that the regulator's staff had referred sweepstakes-related concerns to law enforcement.
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” O’Dwyer said in the press release last week. “I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market. We encourage those of age who wish to gamble to do so with legal operators.”
