- New York Senate passed S5935 on June 11, 2025, banning online sweepstakes casinos using dual-currency systems, targeting unregulated gambling.
- Bill imposes $10K–$100M fines and license revocation; companion bill A6745 awaits Assembly vote before June 30, 2025, session end.
- Ban could boost legal betting and fund addiction programs, but some fear the ban may hurt legitimate businesses; Attorney General targets 26 operators.
Why the Senate Moved to Ban Sweepstakes
On June 11, 2025, the New York Senate passed Senate Bill S5935, introduced by Sen. Joseph Addabbo, to prohibit online sweepstakes games using dual-currency systems, which mimic casino-style gambling without state oversight.
These platforms, like Chumba Casino, let players buy virtual coins for games and redeem winnings for cash, operating in a legal gray area. With New York’s $2.08 billion sports betting market in 2024 and no legal iGaming, unregulated sweepstakes divert revenue and evade consumer protections, prompting action.
You can see the urgency: the state wants to protect players, especially minors, from addiction and fraud.
See also:
- Sportradar Scores Betting Data Deal for FIFA Club World Cup 2025, Boosting Global Reach
- NSW’s $2.17B Pokie Losses Spark Outrage Over Failed Harm Reduction
- South Korea Busts Illegal Gambling Ring Targeting Teens, Nets $18.2M in Bets
Details of the Sweepstakes Ban
S5935 defines sweepstakes as online games with dual-currency systems simulating slots, poker, bingo, or sports betting, banning operators, suppliers, payment processors, and affiliates from supporting them.
Violators face $10,000–$100,000 fines per violation and potential license revocation, with enforcement by the New York State Gaming Commission (NYSGC), state police, and Attorney General. A companion bill, A6745 by Assemblymember Carrie Woerner, passed the Assembly Ways and Means Committee 35-0 but awaits further action before the legislative session ends June 12.
You might notice the scope: the ban targets an entire ecosystem to choke off illegal operations.
Impact on New York’s Gambling Industry
New York’s gambling market, including retail slots and online sportsbooks, is tightly regulated, but sweepstakes sites exploit loopholes, offering no safeguards like self-exclusion programs (used by 1,200 New Yorkers in 2024).
The ban could redirect players to legal options, boosting the state’s Commercial Gaming Revenue Fund, which supports problem gambling programs. For you, this means safer betting if you stick to NYSGC-approved platforms like Bet365, but X posts show operator pushback, with the Social and Promotional Games Association (SPGA) arguing the ban threatens legitimate businesses like Starbucks’ rewards. You might wonder: will this kill innovation or clean up the market?
What’s Next for New York’s Gambling Crackdown
The Assembly must pass A6745 before June 12 for the ban to reach Gov. Kathy Hochul’s desk, but time is tight. If enacted, fines could fund addiction treatment, and operators like Fliff and High 5 Casino, already exiting New York, may face further pressure.
Addabbo’s push for legal iGaming (S9226) could offer a regulated alternative, though it stalled earlier. You’re probably curious about safe betting: avoid sweepstakes sites and use licensed sportsbooks for now. With Attorney General Letitia closing down more illegal operators, New York’s fight against illegal gambling is intensifying.
Join us on all our social channels and groups
Gameongazette is present on:
