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State of Play
- New York Gov. Kathy Hochul has signed a law banning online sweepstakes casinos, marking a significant shift in the state’s approach to online gaming.
- This move comes amid broader legislative actions against sweepstakes casinos across major the US.
- The ban impacts a sector that generated over $760 million in New York last year.
The sweeping ban on online sweepstakes casinos in New York was finalized when Gov. Kathy Hochul signed Seante Bill 5935 into law last week. Sponsored by State Sen. Joseph Addabbo, the legislation passed with minimal opposition earlier in June.
This law effectively outlaws sweepstakes casinos in the Empire State, joining a growing list of states that have legislated against this gaming form in 2025.
The move follows months of regulatory activity, including cease-and-desist orders issued by the New York attorney general to numerous operators earlier in the year. This legislation notably coincides with ongoing developments in New York’s downstate casino licensing and could usher in real-money online casinos in the near future.
Industry produced over $250M in net revenue in 2024
New York’s ban signifies tightening restrictions in one of the country’s largest markets. The state accounted for roughly 7% of US online sweepstakes casino sales in 2024, generating an estimated $762 million and $251.7 million in net revenue, according to a study commissioned by the Social Gaming Leadership Alliance.
Many operators, including major names like VGW, exited the market earlier in response to the AG’s enforcement actions. This ban exacerbates challenges for sweepstakes-style gaming providers aiming to sustain operations within regulated US jurisdictions and reflects growing momentum from other large states such as New Jersey, California, and Nevada that have enacted similar legislation this year.
Similar legislative efforts are expected in states like Maine and Florida, potentially further curbing sweepstakes-style gaming nationwide. Industry groups like the Social Gaming Leadership Alliance continue to advocate for regulated frameworks but face significant legislative resistance.
Based on reporting by Chris Altruda for Casino Reports.
