Sweepstakes casino brands and players have received a definitive answer on operations in the state of New York: sweeps casinos are now illegal in NY.
This is because S 5935A was finally signed into law by Governor Kathy Hochul, closing the curtain on one of the country’s largest sweeps markets.
S 5935A’s Nine Month Journey
Introduced in March this year, the bill (formerly S 5935) was sponsored by Senator Joseph Addabbo, an influential figure, in part thanks to his position as Chair of the Senate Racing, Gaming and Wagering Committee.
Around three months later, the bill had passed both the Senate and Assembly, receiving the stamp of approval from both houses. However, it wasn’t until last week that it was finally delivered to Governor Hochul for her signature or a veto.
The reason for this lengthy delay still remains unclear, but the Governor did indeed sign the bill off late last week, and the text specifies that it becomes effective immediately. This means that operating a sweepstakes casino in the Empire State is now against the law.
S 5935A is a relatively short document that amends NY’s racing, pari-mutuel wagering and breeding laws. A sweepstakes game is defined as:
“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”
The text then outlaws the operation of this format, along with any associated supply chain, including payment processors, geolocation providers, gaming content suppliers, platform providers, and media affiliates.
The responsibility of enforcement lies with multiple bodies, namely the state gaming commission, the state police, and the attorney general’s office, and penalties go as high as $100,000 for each violation, along with the loss of a gaming license or eligibility for one.
Addabbo has previously hinted that he would be open to the idea of sweepstakes casinos becoming licensed in the future – that’s as part of his broader push for legal iGaming in New York. However, that is a dim and distant hope for now, especially as analysts say that overturning a ban like this is a giant task in itself.
Pretty much all legitimate sweeps operators anticipated this news; withdrawals were announced and implemented throughout 2025. We’ve seen the market slowly dry up, with Gains and Gold Machine being two of the last to leave recently.
How the New Law Impacts New York Sweeps Players
Unfortunately, players in NY now have no legal options that allow sweepstakes gaming. The closest equivalent is the pure social casino vertical, populated by the likes of ZitoBox and Gambino Slots. These platforms only deal in free play rather than offering promotional play with Sweeps Coins and the possibility of real cash redemptions – it is the latter that is now illegal.
New York becomes the sixth state this year to pass anti-sweepstakes legislation, and, while not quite as big of a loss as California, it deals a massive blow to the industry. Fortunately operators have suspected legislators would pass this law for many months, allowing them to plan accordingly.
As the market for players continues to shrink, we are seeing a reduction in the value of free bonuses, along with some sites introducing fees on coin purchases.
While the vast majority of legislature sessions across the country are now over for the year, most will start back up in 2026, where it’s possible there could be more jurisdictions following in New York’s footsteps.
Author: Joseph Allen
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