New York Senate Approves Prohibition on Online Sweepstakes Casinos

The legislation moves to the Assembly, where it has been sent to the Ways and Means Committee.

Ziv Chen

Last updated: June 13, 2025 12:55 PM EDT • 2 min read

The New York Senate has approved legislation to outlaw internet sweepstakes casinos, a significant move to shut down unregulated online gaming. Senate Bill S5935, introduced by Sen. Joseph Addabbo, passed by a 57-2 margin on Wednesday evening. The legislation moves to the Assembly, where it has been sent to the Ways and Means Committee.

The bill aims to expressly prohibit online sweepstakes games that are casino-style simulations, such as video poker, lottery, bingo, and sports betting simulations. Such games, which employ a dual-currency approach, allow users to trade virtual currency for cash prizes or equivalents—a mechanism that legislators claim mirrors traditional gambling.

The bill also makes it possible to punish not just the sweepstakes casino operators but also third-party facilitators of their operations. These cover payment processors, software providers, geolocation technology companies, and even investors. The offenses can attract fines in the five-figure range and even result in the revocation of a gaming license.

Sen. Addabbo stated that the ban targets games that simulate gambling and offer real-world prizes. These differ from legal sweepstakes, such as those offered by companies like Starbucks, which provide promotional products. The older promotions are still legal under the bill language, which expressly prohibits casino-style play linked with cash prizes.

The ban would be regulated by the New York State Gaming Commission (NYSGC) in coordination with the state police and the Office of the Attorney General (OAG). It would be empowered to investigate, issue cease-and-desist orders, and assess penalties for offenders.

Revenues raised through enforcement efforts would be placed in the Commercial Gaming Revenue Fund to fund problem gambling initiatives.

Sweepstakes operators feel the pressure

Sen. Addabbo utilized the legislative session to reiterate that any form of online casino gambling is unlawful in New York except where expressly permitted by the state. He asserted that the characteristics of online sweepstakes casinos are similar to those of unauthorized casino gambling and must be handled similarly.

He also expressed concern over the availability of the platforms to children as well as vulnerable communities.

The Senate's move follows the OAG's recent regulatory crackdown. Attorney General Letitia James said last week that her office, in partnership with the NYSGC, had sent cease-and-desist letters to 26 online sites offering sweepstakes-style gambling.

Each of the websites, including Chumba Casino, Global Poker, Fliff, McLuck, and Sportzino, adhered to the instructions.

Trade groups, including the Social and Promotional Games Association (SPGA) and the Social Gaming Leadership Alliance (SGLA), condemned the OAG's enforcement actions, saying they were dismayed that the office had chosen to target sites they view as different from classic online gambling businesses.

The approval doesn't automatically mean the bill will become law. Louisiana lawmakers voted unanimously to ban sweepstakes casinos, but Gov. Jeff Landry vetoed the decision this week.

Written By:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.