New York just took a pivotal step to become the next state to pass an anti-sweepstakes bill in 2025. S5935, which looks to clearly prohibit NY online sweepstakes casinos, has now passed both chambers of the legislature.
Here’s the bill’s journey so far:
- S5935 was introduced in March 2025 by Joseph P. Addabbo Jr. (pictured).
- It advanced through the Senate Racing, Gaming and Wagering Committee, of which Addabbo is Chair.
- It received an amendment on April 30 while in the Senate, creating S5935A.
- After committee consideration and reports, the Senate passed S5935A on June 11, sending it to the Assembly.
- The Assembly had the identically worded A6745A in play, but swapped it out for S5935A.
- Yesterday, the Assembly passed S5935A and returned it to the Senate.
Essentially all that remains is for the bill to be handed over to Governor Kathy Hochul for her signature or veto. The proposal squeaked through at the end of this year’s legislative session, which ends officially on June 17.
Interestingly, unlike the anti-sweeps proposals in Montana and Connecticut, which will come into effect in October, S5935 contains this line:
“This act shall take effect immediately.”
It seems New York is serious about the removal of sweeps casinos from the state, and it wants to handle things as quickly as possible. In fact, the bill could be explained as a clearing of the way to potentially allow fully-licensed iGaming in the Empire State, something that Senator Addabbo has been vocal on for a while now.
In the debate around S5935, Addabbo said:
“Until we legalize online gaming in New York, we do not want the illegal market to expand, to grow, to target minors or those that have problems.”
Those are incredibly broad generalizations about the sweepstakes industry, but that’s another discussion for another time.
Addabbo’s also stated in a separate interview:
“It’s a question of not if but when…Eventually, iGaming will happen in New York.”
Definitions and Penalties for NY Sweepstakes Casinos
Addabbo’s bill defines an ‘online sweepstakes game’ in the following way:
“Any game, contest, or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal, or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalents, or any chance to win any cash prize, cash award or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games, lottery games, bingo, or sports wagering.”
It also hands over power to the state gaming commission to be able to determine what constitutes a dual-currency according to this paragraph, narrowing the scope for operators to argue technical distinctions or loopholes around currency models.
Interestingly, the punishments are not as harsh as other similar bills we’ve seen this year and lack specific criminal penalties. In the current version of the bill, there are fines of up to $100,000 per violation, and loss of, or ineligibility for, a state gaming license.
NY Attorney General is Part of the Anti-Sweepstakes Fight
Earlier this month, New York Attorney General Letitia James announced she’d issued cease and desist letters to 26 sweepstakes operators in the state. Apparently all recipients complied, taking a big chunk out of the options available for sweeps players in NY.
In New York, S5935 alone would likely be enough to deter sweepstakes operators from continuing business, but the AG’s actions are certainly a considerable deterrent too.
S5935 clarifies that enforcement of the bill falls to the “state gaming commission, the state police, or the attorney general’s office”. This multi-pronged approach seems to be how many states are choosing to deal with sweepstakes casinos in 2025, backed by the statutory structure created by lawmakers.
Sweepstakes Trade Group Reacts to New York’s New Bill
With very few steps now remaining until the proposal becomes law, the Social and Promotional Games Association (SPGA) has called on Governor Kathy Hochul to “veto SB5925 [sic]”, labelling the legislation “a shortsighted bill that threatens to kill investment, stifle innovation, and undermine New York’s position as a national leader for tech and digital entertainment.”
The group’s statement continued:
“Troublingly, the bill leaves the definition of what constitutes an offending game entirely at the discretion of the State Gaming Commission, an unelected body.”
The SPGA also brought up the veto decision made by Louisiana Governor Jeff Landry on a similar bill in his state. That being said, Landry believed the necessary laws were already in place, and cease and desist letters have just been served to 40 operators in the Pelican State.
The SPGA is a trade body made up of High 5, Blazesoft, Kickr, and more sweepstakes casino operators. It has lobbied on behalf of the sweeps industry over the past few months with fiery rhetoric, but has been unable to count many wins as of yet.
We also saw the launch of the Social Gaming Leadership Alliance (SGLA) recently, a group that has taken a more nuanced approach with its statements. The SGLA consists of VGW, Yellow Social Interactive, and other major stakeholders from the social gaming industry, but it has yet to comment officially on the New York bill passing both chambers.
VGW has already withdrawn its casinos (Chumba, Luckyland Slots, Global Poker) from the state, as has Yellow Social Interactive (Pulsz, Pulse Bingo). If you’re a sweepstakes player in New York, we recommend processing any potential redemptions as soon as possible, and we’ll keep you updated with any further legal developments as they happen.
Author: Joseph Allen
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