New York Sweepstakes Ban Bill On Governor's Desk, Has Dec. 31 Deadline

A sweepstakes ban bill, Senate Bill 5935, passed in New York earlier this year, and now, the countdown is on for a decision from Governor Kathy Hochul. 

The state legislature isn't in session right now; thus, Hochul has 30 days (until Dec. 31) to make one of three decisions: sign the bill, veto it, or do nothing. 

If she opts to do nothing, it'll act as a "pocket veto," and the bill will be vetoed. 

More On the Bill

The bill that passed, SB5935, has extremely detailed language. Some of it included the following: 

“Any game,  contest,  or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal, or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize,  cash award or cash equivalents, or any chance to win any cash prize, cash award or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games, lottery games, bingo, or sports wagering. The state gaming commission shall determine what constitutes a dual-currency system pursuant to this paragraph.”

The last sentence is important because the New York State Gaming Commission can decide what is and isn't considered part of the dual-currency model. 

Of course, that refers to the system sweepstakes casinos use now, such as Gold Coins and Sweeps Coins. 

Gold Coins are used solely for fun and have no cash value, while Sweeps Coins can be redeemed for cash prizes. 

The bill also included partners of sweepstakes casinos: 

“It shall be unlawful for any applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to support the operation, conduct, or promotion of online sweepstakes games within the state of New York.”

New York Could Be The Fifth

If Hochul signs the bill, that means that there will have been five states—New York, New Jersey, Connecticut, Montana, and California—to pass and sign sweepstakes casino bans in 2025 alone. 

Additionally, we've seen states like Tennessee, Minnesota, Louisiana, and Arizona come down hard on sweepstakes casinos despite no laws officially on the books, issuing several cease-and-desist orders. 

In fact, Louisiana Governor Jeff Landry vetoed the bill because he believed the state was already within its rights to pursue the platforms. 

In a statement by SGLA Managing Director Sean Ostrow to Sweepsy, he said: 

“New York stands at a critical juncture in determining how to approach online social games with sweepstakes promotions, or Social Plus games,” Ostrow told Sweepsy on 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.”

The SGLA has also been working on seeking regulation for sweepstakes casinos, recently targeting Florida and attempting to rebrand from sweepstakes casinos to "Social Plus" platforms.