New York anti-sweepstakes bill awaits Governor sign-off
Following the state Assembly’s approval of SB 5935 on June 17, New York would join Montana and Connecticut in banning such platforms if Governor Hochul signs the bill into law.
Key Points
- In June 2025, New York Attorney General Letitia James issued cease-and-desist letters to 26 sweepstakes casinos operators, including VGW and Global Poker
- The bill includes provisions for potential criminal penalties against individuals or firms investing in platforms offering currency which can be converted into cash or equivalents
New York Senate Bill 5935, which includes provisions that would prohibit the activity of sweepstakes casinos, passed through the state Assembly on June 17, prompting responses from organizations such as the Social and Promotional Games Association (SPGA) and the Social Gaming Leadership Alliance (SGLA).
“This bill doesn’t just target sweepstakes, it sends a chilling message to anyone looking to invest in the next generation of gaming innovation,” a spokesperson for the SPGA said.
“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.”
The bill includes provisions for potential criminal penalties against individuals or firms investing in platforms offering currency which can be converted into cash or equivalents and now awaits final signature from Governor Kathy Hochul.
According to the SPGA, SB 5935 “leaves the definition of what constitutes an offending game entirely at the discretion of the State Gaming Commission, an unelected body.”
In June 2025, New York Attorney General Letitia James issued cease-and-desist letters to 26 sweepstakes casinos operators, including VGW, the parent company of LuckyLand Casino, Chumba Casino and Global Poker, which have exited the state at the time of writing.
Good to know: According to the New York State Gaming Commission, the Empire State posted a $2.21bn mobile sports betting handle in May 2025, which represents an increase of over $100m year-over-year
“By advancing legislation that was drafted based on fundamental misunderstanding of our industry and aggressively promoted by stakeholders with a competitive interest in shutting down these platforms, New York residents could lose access to popular, free-to-play online games enjoyed by millions,” SGLA Executive Director Jeff Duncan said.
“Legislators raised legitimate questions about how this law would be enforced, whether federal law takes priority, and potential unintended consequences for widespread promotional activities – questions that remain unanswered because the bill was rushed through too quickly.”
Duncan continued: “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.”
If signed into law by Governor Hochul, New York would join Montana and Connecticut in banning platforms that offer virtual sweepstakes coins redeemable for cash prizes.
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