New York Finalizes Sweepstake Casino Ban With Governor’s Approval

New York has officially enacted its prohibition on sweepstakes casinos, concluding a months-long wait between legislative approval in June and the governor’s final signature. The signing brought Senate Bill 5935 into force immediately and set the framework for restricting casino-style and sports-style sweepstakes products that use redeemable virtual currencies. The measure also establishes penalties for companies that support the model, bringing a broad portion of the industry under the statute.

Governor’s Signature Brings the Ban Into Effect

The law applies beyond the platforms directly offering sweepstakes casino games. Payment processors, affiliates, media partners, technology suppliers, financial institutions and geolocation providers all fall within the scope of potential violations. Penalties range from $10,000 to $100,000 for each breach of the statute, and the consequences may affect existing or future licenses.

The Social Gaming Leadership Alliance responded critically after the final approval, stating that Hochul “chose a short-sighted path” when she signed the measure.

Regulators in New York had already taken direct action ahead of the governor’s decision. Earlier in the year, the attorney general issued cease-and-desist orders to 26 companies, leading major platforms such as Chumba Casino, LuckyLand Slots and the parent firm of Global Poker to leave the state’s market. Those withdrawals occurred before the bill reached the governor’s desk, suggesting that enforcement pressure had already shifted operations.

Industry data shows that sweepstakes casinos generated roughly $762 million in sales and more than $250 million in net revenue in New York in 2024, marking the state as one of the most significant jurisdictions affected by the newly enacted ban.

Legislative Activity Grows After New York’s Action

Several states introduced measures soon after New York finalized its law. In Florida, Representative Berny Jacques filed House Bill 591 for the 2026 legislative year. The proposal consists of 86 pages and identifies activities linked to operating or promoting internet gambling as a third-degree felony. It also reinforces the existing framework around the Seminole Tribe’s position in the state’s gaming landscape. A similar bill did not advance during the previous session.

Florida remains one of the largest markets for sweepstakes operators, with sales exceeding $1 billion. The Social Gaming Leadership Alliance opposed the Florida measure, and Jeff Duncan stated, “We strongly disagree with the categorisation that Social Plus games that utilise sweepstakes promotions have anything in common with illegal offshore gambling operations,” later adding, “HB 591 laudably seeks to stop illegal gambling… but fails to account for how lawful promotional sweepstakes operate in Florida.”

Maine joined the group of states taking legislative steps, as Senator Craig Hickman introduced LD 2007. The bill sets penalties that may reach $100,000. The director of the state’s gambling control unit had previously warned that sweepstakes casinos were not functioning within established regulatory standards. Indiana Representative Ethan Manning filed House Bill 1052, which defines sweepstakes activity and sets both civil and criminal penalties, including provisions connected to tobacco and electronic cigarette rules.

Enforcement Expands in Other Jurisdictions

New York’s ban adds to a wider shift during the year, with California, Connecticut, Montana, Nevada and New Jersey adopting their own measures. Where full prohibitions did not pass, regulators applied existing powers. Louisiana’s governor declined to sign a proposed ban, but regulators later issued 40 cease-and-desist notices. Arizona, Delaware, Michigan, Minnesota, Pennsylvania, Tennessee and West Virginia also released directives, and the West Virginia attorney general issued subpoenas.

VGW, which had already withdrawn from Canada, stated, “Our Canadian business is relatively small, as the vast majority of our players reside in the larger US market, where we will concentrate our management focus, resources and investment going forward.”

With the governor’s signature now in place and the law fully active, New York’s prohibition stands as a central development shaping how states approach sweepstakes casinos in the lead-up to 2026.

Source:

New York Ban Spurs Wider Action Against Sweepstakes Casinos, LCB.org, December 10, 2025