New York Bans Sweepstakes Casinos as Downstate Casinos are Greenlit
Posted on: December 8, 2025, 09:19h.
Last updated on: December 8, 2025, 10:11h.
- Online sweepstakes casinos utilizing dual-currency schemes are now banned in New York
- New York recently approved three downstate casinos
- Sweepstakes continue to face setbacks across the US
Online sweepstakes casinos are now illegal in New York.
On Friday, New York Gov. Kathy Hochul (D) signed Senate Bill 5935 into law. The statute prohibits online social gaming platforms from utilizing dual currency schemes that essentially allow players to gamble for money. The measure became effective immediately upon the governor’s signature.
Online sweepstakes game shall mean any game, contest, or promotion that is available on the internet or accessible on a mobile phone, computer, or similar device that utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award, or cash equivalent,” the New York law reads.
SB5935 cleared the State Legislature in June. The New York Senate passed the sweepstakes casino ban with a 57-2 vote. Just four days later, the State Assembly passed the measure unanimously, 141-0.
Hochul took her time in signing the statute, prompting sweeps proponents to think that they had a chance of securing a veto. In the end, the Democrat lent her support and killed online dual-currency sweepstakes games.
Sweepstakes Ban Comes as Casinos are Authorized
Hochul’s signature comes only days after a New York state government agency recommended three downstate casino projects for licensure. Multibillion-dollar casino bids in the Bronx and Queens are expected to receive state-issued slot, table game, and sports betting licenses before the year’s end.
If the licenses are granted, as expected, Hard Rock and billionaire Steve Cohen will proceed with their $8 billion Metropolitan Park development at Willets Point. Resorts World will invest $5.5 billion to overhaul Resorts World New York City, and Bally’s Corp. is behind the $4 billion Bally’s Bronx complex at Ferry Point Park.
In April, Las Vegas Sands, once considered a frontrunner for a downstate New York casino license, abandoned its Long Island casino plan. The company cited concerns about iGaming authorization as its reason for exit.
Though dual-currency sweepstakes casinos are unregulated online games, and not the type of iGaming state lawmakers are likely to consider in future legislative sessions, eliminating the controversial promotional vehicles will likely appease the three downstate concessionaires and their business outlooks.
Sweepstakes End Near?
Dual-currency online sweepstakes platforms claim they operate free-to-play social games. The inclusion of the secondary currency, often called sweepstakes coins, can be used to enter promotional contests, with cash prize redemptions available.
State lawmakers, gaming regulators, and attorneys general haven’t been buying what the sweeps platforms have been selling. Those interests say online sweepstakes casinos constitute illegal gambling.
New York joins California, Connecticut, Idaho, Montana, New Jersey, and Washington in passing legislation banning sweepstakes casinos. Arizona, Arkansas, Delaware, Louisiana, Maryland, Michigan, Mississippi, Nevada, Pennsylvania, and Tennessee have ordered sweeps out through state-issued cease-and-desist directives.
The Social Gaming Leadership Alliance (SGLA), an advocacy for the controversial apps and websites, says state lawmakers and officials are rushing to judgment.
Online social games are a mainstream digital entertainment category that delivers interactive board, card, and casino-style games to millions of Americans. Operators provide free-to-play experiences where players can always participate without payment, with optional in-game purchases to enhance and extend gameplay,” the SGLA said.
“The SGLA represents operators who, like many US retailers and other businesses … market their digital entertainment offerings using sweepstakes promotions. Our operators follow the same established legal principles used by mainstream brands and, importantly, offer an alternative method of entry that is easily available and accessible,” the group added.
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