Further Comments From Wallach
In another post on X, Wallach detailed a summary of provisions within the bill, including the following:
"- Prohibits the operation, conduct, or promotion of online sweepstakes games by any applicant, licensed entity, gaming employee, or other related individuals or entities.
"- Prohibits financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers, or media affiliates from supporting such games.
"- Establishes penalties, including fines ranging from $10,000 to $100,000 per violation and potential loss of a gaming license.
"- Grants enforcement authority to the New York State Gaming Commission, State Police, and Attorney General's office."
He also posted a screenshot of part of the bill, and at the end, it reads, "This act shall take effect immediately."
Wallach went on to add that, in addition to the six states that now have sweepstakes casino bans—Connecticut, California, Montana, New Jersey, New York, and Nevada—13 states have issued cease-and-desist orders.
He listed these states: Michigan, Connecticut, West Virginia, Maryland, New York, New Jersey, Pennsylvania, Delaware, Mississippi, Louisiana, Arizona, Minnesota, and Tennessee.
Finally, he mentioned two states in which the State Attorneys General took action: Louisiana issued an opinion, and West Virginia issued subpoenas.
The SGLA Urged New York To Veto
In a statement to Sweepsy, before the signing of this bill, the Social Gaming Leadership Alliance urged the Governor to veto the bill:
“New York stands at a critical juncture in determining how to approach online social games with sweepstakes promotions, or Social Plus games,” Ostrow said Tuesday night. “This form of digital entertainment — enjoyed by millions of New Yorkers — represents a thriving economic sector that supports local businesses and the broader New York economy, while offering significant taxation and revenue opportunities for the state. Research shows Social Plus games contributed more than $230 million to New York’s economy in 2024, and that the state could generate more than $80 million annually in revenue from taxation and licensing frameworks, while polling shows Americans overwhelmingly support this approach as opposed to bans that impinge upon their freedoms.
“We urge Governor Hochul to veto S.5935-A / A.6745-A, which is unnecessary, overbroad, and counterproductive. The SGLA stands committed to work with the Governor, Legislators, and Attorney General to find a constructive regulatory approach that will protect consumers and establish New York as a leader in digital innovation.”
It's been a trying year for those in support of sweepstakes casinos, and now, Florida, which, according to an SGLA-commissioned study by Eilers & Krejcik, found that it makes up about 8.5% of the market, has a bill ready for the start of its 2026 legislative session in March to ban sweepstakes casinos.
We'll see what becomes of the sweepstakes casinos market in 2026 and beyond.
