After Governor Kathy Hochul signed bill S5935A into law, New York has formally outlawed online sweepstakes casinos.
The action immediately shuts down one of the biggest sweepstakes markets in the US by making it illegal to operate sweepstakes casino platforms within the state.
The law, which takes effect immediately, prohibits operators and businesses, including payment processors, geolocation providers, content suppliers, platform providers, and media affiliates, from supporting these platforms.
Senator Joseph Addabbo first proposed the bill in March 2025, and it went through the legislative process for about nine months.
Addabbo, who chairs the Senate Racing, Gaming, and Wagering Committee, assisted in steering S5935A through both the Assembly and Senate, where it was approved earlier this year before getting forwarded to the Governor for final sign-off.
The legislation specifically forbids online sweepstakes games that use a dual-currency payment system by amending New York’s racing, pari-mutuel wagering, and breeding laws.
What the Law Does and How it Affects Players
S5935A defines a sweepstakes game as any online or mobile game, competition, or promotion that uses two currencies, usually one paid and one promotional. This has been the norm for sweepstakes casinos that offer redeemable prizes.
The law authorises the state gaming commission, state police, and the attorney general’s office to enforce compliance, which forbids the operation, conduct, or promotion of such games in New York.
Penalties for infractions may reach $100,000 (£75,133) per offense, and the current or prospective gaming licences may be revoked.
In anticipation of this result, the majority of significant sweepstakes casino operators had already started leaving New York earlier this year after Attorney General Letitia James announced cease-and-desist actions against 26 operators.
Since the law went into effect, players in New York are no longer able to legally access sweepstakes-style casinos that offer Sweeps Coins that can be redeemed for cash.
Pure social casinos like ZitoBox and Gambino Slots, which only offer entertainment without real-money redemptions, are the closest options still available.
In 2025, New York joins California, New Jersey, Montana, and other states that have taken steps to limit or outlaw dual-currency sweepstakes casino models by passing anti-sweepstakes legislation.
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