NY’s Anti-Sweeps Bill Heads to Governor for Signature or Veto Decision

New York’s anti-sweepstakes bill, S 5935 has finally been delivered to Governor Kathy Hochul for a signature, several months after it passed the legislature.

There’s no official explanation for why the bill took over five months to arrive after passing on June 17, but delays like this can happen for administrative or other reasons.

Indeed, the bill squeaked through during the last day of NY’s legislative session in the summer. During the session, the NY Governor has 10 days after delivery to make a decision, but as we’re outside that period, she now has a more lenient 30 day window.

Governor Hochul can choose to sign the bill, veto it, or take no action – if she doesn’t act within the 30 day window, S 5935 will be ‘pocket vetoed’ and will not become law.

So far in 2025 we’ve seen similar bills signed into law in Montana, Connecticut, Nevada, New Jersey, and California – a signature would make New York the sixth state this year to pass anti-sweepstakes legislation.

We also saw a bill pass the legislature in Louisiana and get vetoed by Governor Jeff Landry. However, this was never good news for the sweepstakes industry – upon vetoing, Landry made the point that the Pelican State already has laws in place to tackle sweeps operators, and the Louisiana Gaming Control Board soon went on the offensive armed with cease and desist letters.

Judging by the precedent set so far this year, and commentary from industry stakeholders such as Howard Glaser of Light & Wonder, it seems likely that S 5935 will be signed into law in New York.

When Would Sweepstakes Casinos Have to Leave New York?

It’s also worth noting the last line of the bill’s text:

Unlike California’s bill which – at the time of signing – gave operators two and a half months to withdraw from the state – a process which is still ongoing for many – S 5935 would become effective with the Governor’s signature.

It seems the vast majority of sweepstakes casino operators are aware of this clause, as most have already withdrawn from the Empire State. A few still remain, though.

S 5935 in a Nutshell

Introduced in March 2025 by Senator Joseph P. Addabbo Jr., the bill would amend current NY gaming law to prohibit sweepstakes casinos from operating along with the whole of their supply chain.

A sweepstakes game is defined as one that:

So this definition covers the Gold Coin/Sweeps Coin format that basically all sweeps casinos make use of.

The bill goes on to include the following members of the supply chain as unlawful participants: financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates.

Violation could lead to fines of up to $100,000, payable to the state gaming commission for use in combating problem gambling education.

The State of Gaming Regulation in New York

Violation could also lead to ineligibility for a future gaming license, and this penalty isn’t to be ignored. That’s because Senator Addabbo made some surprising comments on the possibility of eventual sweepstakes casino regulation in NY in August this year.

In fact, Addabbo has been pushing for general iGaming regulation in his state for many years, hoping it could follow in the footsteps of sports betting, which is legal in NY. And it seems he wouldn’t be against including sweepstakes casinos in with traditional online gambling, if iGaming regulation ever became an option.

As Chair of the Senate Racing, Gaming and Wagering Committee, Addabbo has also been vocal about the idea of raising more tax revenue for the state via gambling, as well as being instrumental in plans for three new land-based casinos in the New York City area.

Only this week, the New York Gaming Facility Location Board recommended granting three casino licenses – for facilities in the Bronx, Queens, and at the Aqueduct Raceway – greenlighting an expansion of land‑based gambling in the downstate region.

So the wheels of change are slowly turning when it comes to gaming in the Empire State, but it seems that, for now, sweepstakes casinos could soon be out of the picture.