The decision on whether online sweepstakes casinos will be banned in New York now rests with Governor Kathy Hochul.
The bill proposing this ban, known as Senate Bill 5935, was delivered to her on Monday. She has until December 31, 2025, to either sign it, veto it, or take no action—allowing it to become law by default.
If enacted, New York would join Montana, Connecticut, New Jersey, and California (whose ban takes effect January 1) as states that have formally prohibited sweepstakes-style casinos.
What Would New York's Sweepstakes Casino Ban Change?
The main goal of the bill is to crack down on online sweepstakes casino games that allow players to win real cash prizes through dual-currency systems, such as Sweeps Coins.
Under the proposal, the New York State Gaming Commission and the Attorney General would have full authority to enforce the ban. It also prohibits companies from partnering with or providing services to sweepstakes-style gaming platforms.
Lawmakers overwhelmingly backed the measure, it passed the Senate 57-2 and sailed through the Assembly with a unanimous 141-0 vote.
New York has already begun tightening its stance. State regulators have issued cease-and-desist orders to 26 sweepstakes operators, underscoring how aggressively they intend to address these platforms even before the bill becomes law.
What Makes Sweepstakes Casinos Different From Legalized Online Casinos?
Sweepstakes casinos and legalized online casinos are different in a few important ways, like how they're set up legally, how you pay to play, and how they're controlled by the law.
Sweepstakes casinos follow sweepstakes rules instead of gambling laws. This lets them offer casino-style games in places where you can't legally gamble online for real money.
Players use virtual money like Gold Coins and Sweeps Coins to play. Sweeps Coins can be turned into real money prizes, but the system is set up to avoid direct real-money betting, so they don't need a gambling license.
On the other hand, legalized online casinos need a state-issued gambling license and let players deposit and bet real money directly.
These casinos have to follow strict rules to make sure the games are fair, secure, and played responsibly. They're only legal in states that have approved online gambling. Legal online casinos usually have more game choices, including live dealer games and table games, and they let you make bigger money transactions compared to sweepstakes casinos.
Will Governor Hochul Ban Sweepstakes Casinos in New York?
Governor Hochul's decision is crucial, and many people are watching to see what she'll do. There hasn't been an official statement from her yet, but based on other similar decisions in 2025, it seems likely she may approve the bill.
The Social Gaming Leadership Alliance, however, is encouraging her to reject it. The SGLA suggests that New York could lose more than $230 million per year if lawmakers move forward with a proposed ban on sweepstakes casinos.
Their researchers say The Empire State could gain roughly $80 million in new annual revenue if it regulates sweepstakes casinos instead of banning them outright.
The Social and Promotional Games Association (SPGA) is also hoping for a similar result. The group wants to work together with lawmakers to find a happy medium.
“Innovation in digital entertainment often requires a constructive and informed dialogue with lawmakers and policymakers”, an SPGA spokesperson remarked.
As she looks over the bill, many people will be waiting for her final decision. Stay tuned.
