New York Sweepstakes Bill Heads to the Governor

If the Governor signs the bill, sweepstakes casinos will be prohibited from operating in New York.

Ziv Chen

Last Updated: June 20, 2025 8:00 AM EDT • 2 minute read

The New York Assembly has passed SB 5935A, a bill to ban sweepstakes casinos. The approval comes just days after the Senate passed the bill after a third reading. The legislation will now move on to Governor Kathy Hochul. If the Governor signs the bill, sweepstakes casinos will be prohibited from operating in New York.

Sweepstakes casinos allow players to play online slots and table games using online currencies. Some sites allow players to exchange online currencies for real-life prizes like vouchers and cash. Online casinos are prohibited in New York, so sweepstakes casinos offer players a similar alternative.

SB 5935A was introduced in March 2025 and comes from Senator Joseph Addabbo Jr, who has had a hand in most prominent gambling bills in New York in the past few years. For example, Sen. Addabbo Jr introduced SB 2614 in January 2025 to legalize New York online casinos.

Governor encouraged to veto ban

The passage of SB 5935A through the Assembly prompted the sweepstakes gaming advocacy group, the Social and Promotional Games Association (SPGA), to issue a statement encouraging Gov. Hochul to veto the bill.

The SPGA highlights one area of concern: the New York State Gaming Commission, a body of unelected officials, determines the definition of a game that constitutes sweepstakes gambling.

“This bill doesn't just target sweepstakes, it sends a chilling message to anyone looking to invest in the next generation of gaming innovation. Nearly every form of online gaming we know today, including companies like FanDuel, a New York-based success story, began as pre-regulated concepts. This legislation criminalizes that innovation cycle,” said a spokesperson for the SPGA.

The SPGA also highlighted concerns from local investors over New York’s treatment of emerging models, citing an anonymous investor saying, “If this is how the state treats emerging models, it's hard to imagine backing a founder who wants to innovate here."

Sweepstakes feel regulatory pressure

The SPGA statement pointed out that Louisiana Governor Jeff Landry vetoed a bill to ban sweepstakes casinos. While this is true, Louisiana is just one of many US states cracking down on sweepstakes operators.

The Louisiana Gaming Control Board has served 40 cease-and-desist letters in the past few days, targeting not only offshore sportsbooks and casinos but also many sweepstakes operators. Likewise, the Mississippi Gaming Commission sent 10 cease-and-desist letters to a mixture of sweepstakes and offshore casinos.

New York lawmakers’ appetite to ban sweepstakes casinos is another blow to these operators. States like Connecticut and Montana have already banned sweepstakes casinos.

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.