New York Could Lose $230 Million from Sweepstakes Casino Ban, Warns SGLA

Social Gaming Leadership Alliance (SGLA), an industry stakeholder and advocate, has issued another reminder to regulators and the broader industry in general. In a recent Facebook post, the group warned that New York could lose up to $230 million in projected revenues in a complete sweepstakes casino ban. 

SGLA’s stern warning is based on an economic modelling estimate provided by Eilers & Krejcik, a highly respected research firm that specializes in iGaming. The report explained that the industry contributed over $230 million to the state’s economy in 2024, including $135 million in interchange fees paid to NY-based card issuers.

Could Banning Sweepstakes Casinos Do Harm Than Good to New York?

New York is one of the states that is tightening the screws on sweepstakes casino operations. Senate Bill S5935A, a bill that aims to ban online sweepstakes games and revenues from illegal markets, has already passed the legislative session, and it’s awaiting Governor Hochul’s signature. But for SGLA and other supporters, signing this bill will deprive the state of much-needed revenues.

According to Eilers & Krejcik, online social game and their promotions added over $230 million to the state’s economy in 2024. Specifically, the research points to the following potential issues if the ban pushes through:

• Block $80 million in potential NY revenue
• Cancel partnerships with NY-based companies
• Banning a popular leisure activity that over 84% of Americans support regulating rather than a complete ban

SGLA Calls for Regulation

The SGLA team argues that completely banning sweepstake casino sites isn’t the best option forward. Instead, they encourage Governor Hochul to veto the bill and champion smart regulations that protect players, strengthen safeguards, and help the state’s economy.

SGLA further argued that by regulating the industry, it can add an extra $80 million in state revenues, collected mainly from fees, taxes, and expanded business activity. They also added that most Americans now favor regulation and taxation of these platforms over outright bans.

However, the state’s legislators have moved ahead with plans to ban the social games. The decision to ban is backed by the state’s Attorney General and Gaming Commission, who see these gaming platforms as unregulated, illegal and risky for players.

The state’s regulators have already filed more than 26 cease-and-desist letters, with all operators agreeing to stop their games.

REFERENCES:

• Senate Bill S5935A
• SGLA
• Eilers & Krejcik