New York’s Sweepstakes Casino Ban Is On: Here’s What You Should Know

New York is officially off-limits to online sweepstakes casinos, effective December 5th, 2025, after Governor Kathy Hochul signed Senate Bill S5935. The ban is immediate, targeting sites that are operating on the dual-currency model. It amends the state’s gambling statutes, clarifying sweepstakes casino games as illegal. 

Beyond the immediate ban and another setback for operators, what does S5935 mean for sweeps operators, players, and the broader industry?

A Look at What’s Banned, Who’s Affected, and Its Enforcement

Senator Joseph Addabbo Jr. (D-Queens), chair of the Senate Racing, Gaming, and Wagering Committee, filed the bill last March 4th. He argued consumers lack protection against sweepstakes casinos compared to regulated gaming. In June, the bill passed the Senate, with the following highlights:

• What’s banned? Online games that run on the dual-currency system are now banned, including those that offer gameplay like slots, poker, bingo, table games, or even sports betting.
• Who’s affected? Not just operators. This new law impacts vendors, payment processors, affiliates, or any group/party that’s involved with sweepstakes casinos.
• Who’s in charge? The New York State Gaming Commission and the state’s Attorney General have the authority to ban and issue cease-and-desist orders when necessary.

How About the Penalties?

Violators face civil fines from $10k, up to $100k for each violation. Operators who break the law and are found guilty may lose existing licenses and may become ineligible for future licenses.

Also, companies and other parties connected to sweepstakes games, including affiliates, could be subject to fines and enforcement actions.

The law’s implementation is immediate, with no phased implementation. Players can no longer access these platforms, and those who violate this rule face sanctions.

Governor Hochul’s signature was widely anticipated, and many operators had already mapped out their plans weeks in advance. Many operators have already packed their bags after the state’s Attorney General released cease-and-desist orders to dozens of platforms early this year.

References:

• Office of Senator Joseph Addabbo Jr.