New York is poised to pass legislation that would ban online sweepstakes casinos after a unanimous vote in favour at the Assembly.
The bill, titled S05935A, was passed by New York’s Assembly on Tuesday, June 17, and now awaits Governor Kathy Hochul’s signature to put it into law. It bans the operations or promotion of any online sweepstakes games similar to casino-style games, bingo, lottery games, or sports betting.
Officially, it defines online sweepstakes casinos as any contest 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 or award.”
It passed through the Senate the week prior with a 57-2 vote and was followed by a unanimous vote in the Assembly.
The bill will affect not just the operation but also the promotion of such games, affecting all suppliers, payment providers, geolocation services, media affiliates, and select investors in New York.
Bill S05935A also gives the New York State Gaming Commission, state police, and the Attorney General the power to investigate such games and issue cease-and-desist orders to comply with the bill’s gaming standards. Breaches of the measure could result in revoking gaming licenses and fines starting from $10,000. Those fines will be transferred into the Commercial Gaming Revenue Fund, which funds efforts to support problem gambling education and treatment.
Public opinion on banning online sweepstakes casinos
There are opponents to the bill, despite the overwhelming majority when it comes to votes.
“By blurring the line between lawful sweepstakes promotions and illegal gambling, this legislation threatens a vibrant digital entertainment sector while offering players no safer alternatives,” said Social Gaming Leadership Alliance Executive Director Jeff Duncan, as reported by SBC Americas.
However, New York is not alone in its attempts, with Montana setting a precedent for banning such games at the end of May, 2025.
Featured image: Flickr, licensed under CC BY-NC-ND 2.0
