New York Sweepstakes Gaming Ban Bill Reaches the Desk of Hochul

On Monday, a bill aimed at prohibiting online sweepstakes casinos reached Governor Kathy Hochuls desk after successfully passing both chambers of the New York State Legislature this summer. The legislation, SB 5935, was introduced by State Senator Joseph Addabbo and secured unanimous approval in the Assembly in mid-June. As chair of the Racing, Wagering, and Gaming Committee, Addabbo navigated the bill smoothly through the Senate.

With the bill now on the governors desk, a 30-day period begins during which Hochul can either sign it into law or issue a veto. If she takes no action, the bill will automatically become law.

Overview of SB 5935

The proposed law seeks to ban online sweepstakes platforms, defining them as any internet or mobile-accessible game, contest, or promotion that uses a dual-currency system. This system allows players to exchange the in-game currency for cash prizes or equivalents, and includes casino-style games such as slots, video poker, table games, lotteries, bingo, or sports wagering.

The legislation also grants the New York State Gaming Commission authority to determine what qualifies as a dual-currency system. In addition to targeting operators, the bill makes it illegal for any affiliated entityincluding financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, or media affiliatesto participate in or support online sweepstakes activities within the state.

Industry Reaction

The Social Gaming Leadership Alliance (SGLA) criticized the bill at the time of its Assembly passage, with executive director Jeff Duncan describing it as based on a fundamental misunderstanding of the sector. The SGLA warned that the law could harm businesses and the state economy unintentionally.

An industry study commissioned by SGLA in September estimated that online sweepstakes gaming generated $762 million in sales in New York during 2024, producing $251.7 million in net revenue and $230 million in economic impact. The SGLA suggested that regulating the industry could bring in roughly $100 million in annual tax revenuea strategy that failed to gain support in other states like California. By comparison, mobile sports betting in New York, introduced in 2022 under Addabbos oversight with a 51% tax rate on operators, produced $1.05 billion in tax revenue during the first ten months of 2025.

Author: Grace Ellison