New York state senator, Joseph Addabbo has introduced Senate Bill S5935 in an attempt to ban online sweepstakes casinos from the Empire State.
By doing so, he’s taken action on sentiments voiced earlier this year, which also included intentions to usher in legalized iGaming.
Traditional online gambling is not currently legal in New York, but this bill could be the first step in essentially swapping out sweepstakes for a regulated form of online gambling – one that the state could tax.
The new bill seeks to amend the existing Racing, Pari-mutuel Wagering, and Breeding Law and provides an in-depth definition of online sweepstakes games. It specifically targets platforms that use “a dual-currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents.”
This refers to the Gold Coin and Sweeps Coin system used by NY sweepstakes sites, which avoids direct wagering with real money.
Mirroring similar bills introduced recently in other US states, S5935 goes beyond simply the operation of sweepstakes casinos to include penalties for the likes of payment processors and affiliate partners as well. It states that any “applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate” will be subject to punishment.
Penalties are defined as up to $100,000 per violation, along with loss of and future ineligibility for a gaming license. It’s also worth noting the bill specifically states penalties can apply to, not just companies, but individual investors and board members of illegal operators.
It now sits with the Senate Racing, Gaming and Wagering Committee, which is chaired by Senator Addabbo himself. This is the first in several stages of debate and potential amendments; it will also need a counterpart in the state assembly before it can fully pass into law. If it does, it would force all sweepstakes operators to withdraw from New York, the 4th most populous state in the US.
Other states such as Maryland and Florida have similar bills working their way through their legislature.
The Social & Promotional Games Association (SPGA), which advocates on behalf of multiple sweeps operators, responded with a statement “unconditionally” opposing the bill.
“Albany legislators have no business dictating to New Yorkers what games they can play on their phones. This deeply flawed legislation is an affront to personal freedoms, an insult to New York voters, and a colossal waste of government resources.”
It’s worth remembering, there’s still an ongoing class action lawsuit against prominent sweeps operator, VGW in the same state. 2025 continues to be a rocky year for sweepstakes sites, and you can stay up to date with all the latest news here on SweepsKings.
Author: Alex Windsor
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