New York Sweeps Casino Ban Reaches Gov. Hochul With Dec. 31 Deadline
Gov. Kathy Hochul has until Dec. 31, 2025, to act on a bill that would outlaw online sweepstakes casinos in New York.
LISTEN TO THIS ARTICLE:Senate Bill 5935, which the state Senate and Assembly approved earlier this year, arrived on Gov. Hochul’s desk on Dec. 1. Because the legislature is not in session, she has a 30-day window to sign the measure, veto it, or allow it to lapse. If she takes no action, the bill would be pocket-vetoed under current procedures, effectively killing the proposal.
The bill would make it unlawful to operate internet-accessible games that use a so-called dual-currency system to simulate casino gaming and permit exchange for cash or cash equivalents. The text explicitly targets models that imitate slot machines, video poker, table games, lottery-style formats, bingo and sports wagering. It also grants the New York State Gaming Commission sole authority to define what constitutes a dual-currency system under the law.
That delegation is pivotal. The dual-currency construct underlying many sweepstakes platforms typically involves a purchasable in-game coin (commonly called Gold Coins) that cannot be redeemed for real-world value, and a second token (often called Sweeps Coins) that is obtained indirectly and can be redeemed for cash once thresholds are met. By referencing “cash equivalents”, the bill is clearly aimed at those redeemable credits and gives the NYSGC latitude to decide whether future product designs fall inside or outside the ban.
SB5935 goes further by sweeping in third parties: applicants, licensed entities, financial institutions, payment processors, geolocation providers, content suppliers, platform providers and media affiliates would be prohibited from supporting the operation, conduct or promotion of online sweepstakes games within New York State.
Related: NY Sweepstakes Casino Ban Only Needs Gov. Hochul's Signature
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Industry Reaction and What This Means for Operators
The measure, if signed, would make New York the fifth state to enact sweeping prohibitions against these platforms in 2025, joining Montana, Connecticut, New Jersey and California's recent bill targeting online sweepstakes operators. Several other jurisdictions, including Minnesota, Louisiana, Arizona and Tennessee, have moved to restrict sweepstakes activity through enforcement actions or cease-and-desist orders, and New York’s attorney general has already issued more than 20 such actions against operators.
Some operators have attempted to adapt. ClubWPT Gold, for example, recently abandoned a classic Gold Coin/Sweeps Coin structure and repositioned as a poker education site using a single-currency chip model. Under that model, players buy Hand Analysis credits for training content and receive complimentary Chips that can be used in cash ring games and tournaments and redeemed for real money. The company frames the redesign as regulatory risk mitigation and a shift toward educational offerings rather than sweepstakes gaming.
Whether such redesigns will satisfy New York regulators remains unclear. Sen. Joseph Addabbo, sponsor of the bill and a prominent figure in the state’s broader gaming debates, has said he would be open to exploring regulated options for sweepstakes operators after real-money online casinos are legalized in the state. “That’s the opportunity I want to create”, Addabbo said.
But some industry advisers are skeptical about the prospects for reversal once a ban is in place. Bill Pascrell III, partner at Princeton Public Affairs Group, said, “It’s very hard to overturn a ban. It really takes a lot of effort to turn that around, and [operators] better get ahead of themselves and get over this position of not wanting to be regulated, because before you know it, there are going to be more and more states doing it.”
The Social Gaming Leadership Alliance has mobilized players and lobby resources urging Gov. Hochul to veto the bill and pursue a regulated sales-tax framework instead. “Legislators raised legitimate questions about how this law would be enforced, whether federal law takes priority, and potential unintended consequences for widespread promotional activities – questions that remain unanswered because the bill was rushed through too quickly”, SGLA Executive Director Jeff Duncan said. “By blurring the line between lawful sweepstakes promotions and illegal gambling, this legislation threatens a vibrant digital-entertainment sector while offering players no safer alternatives.”
Even if Hochul vetoes SB5935, the combination of prior enforcement by New York regulators and the growing list of states acting against sweepstakes operators has already prompted many reputable platforms to restrict or cease Sweeps Coin gameplay in the state. A legislative ban, however, would create a more durable legal barrier than the current stop-and-start enforcement landscape.
Next Steps for Stakeholders
With the governor’s deadline now public, operators, trade groups and state regulators will be watching closely. If Hochul signs the bill, expect legal challenges, further regulatory guidance from the NYSGC and renewed calls from industry groups for a path to licensing and tax-based regulation. If she vetoes it or allows a pocket veto, advocates for prohibition could pivot to administrative enforcement while proponents of regulation press for clearer statutory frameworks when the state takes up broader iGaming legalization.
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