The Social Gaming Leadership Alliance (SGLA) criticized New York Governor Kathy Hochul's decision to sign a measure that prohibits sweepstakes games, which have long been available to state residents.
Key Takeaways
- SGLA said New York's new law banning Social Plus games eliminates a significant source of economic activity and consumer entertainment.
- Industry research estimated the sector contributed more than $230 million to New York's economy in 2024.
- Critics said the legislation was passed without meaningful consultation and removes long-standing promotional models used by operators.
Industry data showed the sector generated substantial economic activity and potential revenue opportunities for the state before the ban. The SGLA argued the measure lacked adequate consultation and restricted lawful promotional models that have operated for years.
Sweepstakes games contributed more than $230 million to New York's economy in 2024, according to data cited by SGLA. The group said modern regulations could have produced up to $80 million in annual state revenue.
Additionally, the SGLA stated voters nationwide supported regulation rather than prohibition, pointing to polling showing broad public support for updated laws rather than outright bans.
The group also said the measure mischaracterized legal sweepstakes promotions and limits innovation within New York's digital entertainment sector. SGLA executive director Jeff Duncan added that players and operators made clear they opposed removing access to these games.
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Maine advances its own restrictions
Maine has moved in a similar direction, targeting a fast-growing category of sweepstakes-based betting platforms. Building on concerns shared in New York, the Maine Department of Public Safety proposed classifying these dual-currency sites as unlawful and imposing penalties of up to $100,000.
The platforms operate under federal sweepstakes rules and allow users to purchase tokens with additional bonus credits that function as real-money wagers. The proposal forms part of a broader nationwide effort to address emerging betting models that operate outside traditional state-licensing structures.
Maine's regulated sports betting market, controlled online by tribal partners through DraftKings and Caesars Sportsbook, faces new competition from prediction platforms expanding into the state. Those platforms have begun offering markets on Maine's 2026 elections while operating under separate, federal frameworks.
Other states move ahead with bans
Several states have already enacted restrictions, most recently California, which adopted a statewide ban on online social games with sweepstakes components after passing AB 831. The legislation drew bipartisan support but generated opposition from industry groups and several tribal nations.
Critics warned the measure could remove up to $1 billion in annual economic impact and reduce potential state tax revenue by hundreds of millions if the sector had otherwise been regulated. Tribal opponents added that the law undercut smaller nations without established casino operations, while the SGLA maintained that players and operators preferred a regulated model over prohibition.
