Governor Kathy Hochul just signed S5935A into law, officially banning the whole “sweepstakes gaming” model in New York. If you were playing online slots, blackjack, or even “sports betting” using virtual coins that somehow turned into real cash prizes, the party is officially over in the Empire State.
What Does the Ban Entail?
So, what exactly did Hochul ban? Any online game that lets you buy or use one kind of coin (like Gold Coins and Sweep Coins) is now outlawed.
The new law doesn’t only target the sweepstakes casino platforms. It also bans support from payment processors, geolocation firms, content suppliers, and advertisers. Basically, no one can help run or support sweepstakes casinos in New York anymore.
And the penalties are no joke. Break the ban, and fines run from US$10,000 to US$100,000 per violation. On top of that, operators or affiliates risk losing any license or future eligibility.
Who Pushed, Who’s Pissed, and Who Survived
This bill has long been pushed by Joseph Addabbo Jr., who argues these sweepstakes casinos often mimic real gambling, target vulnerable players and kids, and avoid any real oversight or protections you’d see at regulated online casinos.
In June, the state Attorney General’s office already sent cease-and-desist orders to 26 major sweeps platforms operating in New York. All complied and left the state. So while the ban may feel like a shock to some players, for many operators it was just wrapping up an exit they’d already started months ago.
For licensed operators like DraftKings and FanDuel, who operate in the state legally, this just removes a bulk of unregulated competition.
But the Social Gaming Leadership Alliance (SGLA), which has been an adept opposition party from the day the bill was introduced, said the new law goes against the public choice. SGLA Executive Director Jeff Duncan said:
“Players, operators, and voters all made their position clear: they didn’t want a ban on this popular, safe form of entertainment. Gov. Hochul had the opportunity to protect consumer choice and New York’s economic interests. Instead, she chose a short-sighted path, closing the door on choice, innovation, and hundreds of millions in economic activity.”
What Happens Now?
If you logged into a sweeps casino platform from New York this week, you’d likely find it closed. The fun’s over, at least for now. Anyone caught running those games, or supporting them, could be looking at major fines and legal trouble.
For the State of New York, this bill reinforces its commitment to a tightly controlled and heavily taxed legal gambling market.
New York is saying you can have fun, but you must do it on their terms, under their roof, and with their safety rules. Now the Empire State joins a list of states like Montana, Connecticut, California, and New Jersey that have outlawed sweepstakes casinos.
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