New York Bill to Prohibit Sweepstakes Casinos Advances to Governor

Bill Moves Forward to Governor’s Review

A legislative proposal aimed at banning sweepstakes-style casino platforms in New York has received final approval from state lawmakers and is now awaiting Governor Kathy Hochul’s decision. She has until December 31 to either sign the bill into law or veto it.

Details of the Legislation

State Senator Joseph Addabbo, chair of the Racing, Wagering, and Gaming Committee, led the effort with Senate Bill 5935, which passed the Assembly unanimously in mid-June and cleared the Senate with strong support. Now with the bill on the governor’s desk, there is a 30-day period for her to act. If no action is taken within that timeframe, the bill will automatically become law.

The bill targets the dual-currency system widely used in sweepstakes casinos, where players purchase one form of virtual currency and receive a secondary promotional currency that can be redeemed for real money. Beyond the casinos themselves, the legislation holds payment processors, content providers, and affiliate marketers accountable if they continue to support this model.

Potential Effects on Sweepstakes Casinos

If enacted, the bill would severely restrict how sweepstakes casinos operate in New York. The prohibition of the dual-currency system would eliminate the critical method allowing players to redeem winnings for cash prizes. This could force operators to switch to social casino models that use non-redeemable tokens purely for entertainment, a less lucrative approach that typically diminishes player engagement.

Alternatively, casinos might try obtaining full gambling licenses, but New York currently does not permit online casino gambling, effectively barring this option.

While groups such as the Social Gaming Leadership Alliance have opposed the legislation, its advancement to the governor signifies a significant step towards enactment. Should it become law, the New York State Gaming Commission will oversee its interpretation and enforcement.

Broader Context in the United States

New York is joining other states in taking action against sweepstakes casinos. Notably, California has announced a ban on these platforms effective January 1, 2026. With the two largest U.S. markets moving to prohibit sweepstakes casino operations, the future viability of this business model across the country faces growing uncertainty.