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New York outlaws online sweepstakes casinos with new enforcement and penalties

by | Dec 8, 2025

Sweepstakes ban would cost New York $230M annually, says SGLA. New York outlaws online sweepstakes casinos with new enforcement and penalties. Split image showing the New York City skyline with the Empire State Building on the left, and on the right, a computer mouse beside poker chips and playing cards, symbolizing online gambling or sweepstakes gaming.

New York is now the sixth state to clearly outlaw online sweepstakes casinos after Governor Kathy Hochul signed Senate Bill 5935. The new law goes after the sweepstakes casino operators themselves along with the companies that help them run, from payment processors to geolocation firms and media partners.

Anyone who breaks the law can be fined between $10,000 and $100,000 for each violation. In cases where it applies, someone could also lose a gaming license or the chance to get one in the future. Licensed online sports betting is still allowed in New York, but sweepstakes casinos are now officially off limits.

The law blocks anyone connected to the gaming industry from running, managing, or promoting online sweepstakes games. It gives enforcement power to the New York State Gaming Commission, the State Police, and the Attorney General.

Online sweepstakes casinos pull out of New York following bill signing

Right after the bill became law, a few sweepstakes style platforms seemed to pull out of the state. Users of the sports prediction apps Novig and ProphetX posted on social media that they could no longer access the services from within New York.

Sweepstakes casino companies have been under increasing pressure across the country as more lawmakers and regulators take action. California has already put its own ban in place, and other states have been issuing cease and desist orders. New York has been stepping up its efforts against forms of online gambling it considers unauthorized, including sweepstakes casinos and prediction markets.

In June, Attorney General Letitia James said she had sent cease and desist letters to more than two dozen sweepstakes platforms such as Chumba and Fliff. Lawmakers passed the bill that same month, but according to the Senate website it was not sent to Governor Hochul until December 1. She signed it on Friday, putting New York in line with other states that have banned the dual currency sweepstakes model.

The move came despite industry resistance. In October, the Social Gaming Leadership Alliance argued that online social games with sweepstakes style promotions bring in more than $230 million a year for New York’s economy.

At the time, Executive Director Jeff Duncan said, “Governor Hochul faces a clear choice: Embrace smart regulation that protects consumers and generates new revenue or ban a thriving, responsible industry and eliminate hundreds of millions of dollars in economic benefits.” He added, “We urge the Governor to veto this bill and support a framework that ensures these games are safe, accessible and beneficial to New Yorkers.”

Featured image: Canva

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