Published on: December 8, 2025, 09:19h.
Updated on: December 8, 2025, 09:19h.
- New York has officially outlawed online sweepstakes casinos using dual-currency models
- The state has recently sanctioned three downstate casino developments
- Sweepstakes operations continue to encounter challenges nationwide
Online sweepstakes casinos are now deemed illegal in the state of New York.
On December 5, Governor Hochul (D) signed Senate Bill 5935, officially prohibiting online social gaming platforms from employing dual-currency schemes that essentially allow users to participate for cash. This legislation took effect right after the governor’s endorsement.
According to the New York legislation, “An online sweepstakes game refers to any game, contest, or promotion available online or accessible via mobile devices or computers that implements a dual-currency payment system enabling players to exchange currency for cash prizes, cash awards, or their equivalent.”
The State Legislature approved SB5935 in June, with the New York Senate voting 57-2 in favor. The State Assembly followed suit just four days later, passing the bill unanimously with a 141-0 vote.
Hochul took her time before signing the measure, which led supporters of sweepstakes to believe there might be a possibility of a veto. Ultimately, however, the Democrat endorsed the legislation, effectively terminating online dual-currency sweepstakes.
Casino Authorizations Coincide with Sweepstakes Ban
Hochul’s approval of the bill coincides with recent recommendations from a state agency on three downstate casino projects for licensing. Major casino proposals in the Bronx and Queens are anticipated to receive state licenses for slot machines, table games, and sports betting before the year’s end.
If licenses are granted, expected investments include Hard Rock and billionaire Steve Cohen’s $8 billion Metropolitan Park project at Willets Point, along with Resorts World’s $5.5 billion refurbishment of Resorts World New York City, and Bally’s Corp.’s $4 billion Bronx facility at Ferry Point Park.
Previously, in April, Las Vegas Sands, once considered a top contender for a downstate casino license, withdrew its Long Island proposal, citing uncertainties regarding iGaming regulations.
While dual-currency sweepstakes casinos are currently unregulated online entities, they do not represent the iGaming formats that state lawmakers are likely to entertain in future sessions. The ban on these contentious promotional schemes is likely to satisfy the three downstate concessionaires and enhance their commercial prospects.
The Future of Sweepstakes in Question
Supporters of dual-currency online sweepstakes state that they function as free-to-play entertainment. Their secondary currency, often referred to as sweepstakes coins, is utilized for entering contests, with the potential for cash prizes.
However, lawmakers, gaming officials, and attorneys general have not been convinced by the narratives from sweepstakes platforms, arguing that these online casinos equate to illegal gambling.
New York joins other states such as California, Connecticut, Idaho, Montana, New Jersey, and Washington in implementing laws against sweepstakes casinos. Meanwhile, states like Arizona, Arkansas, Delaware, Louisiana, Maryland, Michigan, Mississippi, Nevada, Pennsylvania, and Tennessee have issued cease-and-desist orders against similar operations.
The Social Gaming Leadership Alliance (SGLA), advocating for these controversial platforms, contends that state lawmakers and officials are making hasty decisions.
“Online social games have emerged as a popular form of digital entertainment, offering a variety of interactive board, card, and casino-style games to millions of Americans. Operators provide free-to-play options, allowing users to engage without any financial commitment, alongside optional in-game purchases that enhance gameplay,” stated the SGLA.
“The SGLA represents businesses that, similar to numerous US retailers and organizations, market their digital entertainment through sweepstakes promotions. Our members comply with the same established legal frameworks utilized by mainstream enterprises and provide easily accessible alternative entry methods,” the organization added.