- New York’s Assembly unanimously passed SB 5935 on June 17, 2025, banning dual-currency sweepstakes casinos, awaiting Gov. Hochul’s signature.
- The bill, passed 57-2 in the Senate, fines operators $10,000–$100,000; it targets unregulated platforms after 26 cease-and-desist notices in June.
- The $9.1B market may see legal betting grow, but offshore risks loom; bettors urged to use licensed sites like DraftKings as sweepstakes exit.
Why New York’s Bill Passed with Ease
Lawmakers moved swiftly to outlaw sweepstakes casinos, fueled by concerns over their legal gray area and lack of oversight. The bill, passed 57-2 in the Senate on June 11 and unanimously in the Assembly, responds to a $9.1 billion gambling market’s need for tighter regulation.
Dual-currency sweepstakes games, mimicking casino play, dodge taxes and consumer protections, prompting action after 26 cease-and-desist notices were issued to operators earlier in June 2025. You can see the drive: unregulated platforms threaten New York’s controlled betting landscape.
See also:
- Connecticut Bans Online Sweepstakes Casinos, Joining National Crackdown
- Romania’s Church Joins Fight Against Problem Gambling in National Strategy
- Brazil’s Betting Boom: 73% of Bettors Use Illegal Sites in 2025
Details of the Sweepstakes Ban
SB 5935 bans dual-currency sweepstakes games—where players use virtual coins like Gold or Sweepstakes Coins for prizes or cash—classifying violations as illegal gambling. Operators or affiliates face fines of $10,000 to $100,000, with non-cash prize games exempt.
The bill aims to close loopholes allowing platforms to operate without licenses, unlike regulated iGaming in seven states. Industry groups argue it stifles innovation, but lawmakers prioritize consumer safety. You might notice the scope: this targets digital platforms, not traditional sweepstakes like store promotions.
Impact on New York’s Gambling Industry
New York’s gambling market, the largest U.S. sports betting handle at $51.1 million weekly, supports regulated operators like FanDuel, who paid $2.3 billion in taxes in 2024. The ban could redirect players to licensed platforms, boosting state revenue, but risks pushing bets to offshore sites, which took 15% of U.S. wagers in 2024.
For you, sweepstakes platforms like Chumba Casino are likely gone, but legal options remain. X posts show excitement for cleaner markets but worry over innovation curbs. With Connecticut and Montana banning sweepstakes, a national trend is forming. You might wonder: will this strengthen legal betting or fuel black markets?
What’s Next for New York’s Gambling Landscape
The bill awaits Governor Hochul’s signature, expected soon given the legislative momentum, with an effective date likely in late 2025. Most sweepstakes operators, like VGW, have already exited New York.
The state’s Department of Consumer Protection will ramp up enforcement, building on 2024’s 50 cease-and-desist orders. Legal iGaming and sports betting, taxed at 51% for mobile bets, thrive, with downstate casino licenses set for 2025.
You might be curious about safe betting: use state-verified platforms like DraftKings. New York’s $9.1 billion market is at a turning point, balancing regulation and growth.
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