New York’s executive approval of a statewide sweepstakes ban ended an extended period of uncertainty and immediately reshaped a segment of the online gaming market. Gov. Kathy Hochul’s signature on Senate Bill 5935 put into force a prohibition on casino-style and sportsbook-style sweepstakes platforms that use redeemable virtual currencies. The law came after the legislature passed the bill in June, only for it to remain inactive until its delivery to the governor on December 1.
The statute targets systems in which players can convert in-game currency into cash, cash prizes or equivalents. It also applies to products that imitate casino gaming, sports wagering, lottery formats or bingo. Its effective date began the moment Hochul authorized it.
Legislative Pace and Enforcement Framework
The bill advanced swiftly earlier in the year, clearing the Senate and then the Assembly within days. Despite that momentum, it stalled for several months before reaching Hochul. She signed it within four days of receiving it, finalizing the ban and giving regulators new authority to take action.
This legislation reaches beyond sweepstakes operators. Entities that supply technology, manage payments, provide geolocation services, or participate in media and advertising partnerships fall under the same restrictions. Each violation carries potential fines from $10,000 to $100,000, along with possible loss of existing gaming licenses or the inability to secure new ones.
The Social Gaming Leadership Alliance, which includes companies in the social gaming and sweepstakes sector, stated that Hochul “chose a short-sighted path” by approving the measure.
Regulatory intervention had already begun earlier in the year. The New York Attorney General’s Office issued cease-and-desist orders to 26 platforms accused of offering sweepstakes gambling. According to the AG’s announcement, all 26 complied, including VGW, Fliff, High 5 Casino and Fortune Coins. Sen. Joseph Addabbo said in September, “While we were working on the bill, it was nice to see our Attorney General and gaming commission doing what they can and basically scaring these companies out of New York.” He added, “Some of them saw us pass the legislation, saw the Attorney General’s office getting involved, and left on their own.”
VGW, operator of Chumba Casino, LuckyLand Slots and Global Poker, had previously confirmed in May that it would discontinue Sweeps Coin play in New York. Industry estimates indicate that sweepstakes activity produced approximately $762 million in sales and more than $250 million in net revenue in 2024, making New York one of the larger markets now affected.
Expanding Legislative Action Beyond New York
New York’s new restrictions align it with California, Connecticut, Montana, Nevada and New Jersey, all of which enacted bans or similar measures during 2025. Activity is also accelerating in states that previously lacked legislative movement.
Florida lawmakers introduced House Bill 591 for the 2026 session. The proposal outlines penalties for “operating, conducting or promoting” internet gambling as a third-degree felony and reinforces existing arrangements involving the Seminole Tribe. The Social Gaming Leadership Alliance contested the bill, with Jeff Duncan stating, “We strongly disagree with the categorisation that Social Plus games that utilise sweepstakes promotions have anything in common with illegal offshore gambling operations,” and adding, “HB 591 laudably seeks to stop illegal gambling… but fails to account for how lawful promotional sweepstakes operate in Florida.”
Maine’s LD 2007 sets penalties up to $100,000 and follows earlier warnings by the state’s gambling control director about sweepstakes casinos operating outside regulated systems. Indiana’s House Bill 1052 similarly defines sweepstakes activity, specifies civil and criminal consequences and includes provisions related to tobacco and electronic cigarette distribution.
Regulators in several other jurisdictions took enforcement steps of their own. Louisiana authorities issued 40 cease-and-desist notices after the governor declined to sign a legislative ban. Further orders were issued in Arizona, Delaware, Michigan, Minnesota, Pennsylvania, Tennessee and West Virginia, where the attorney general also sent subpoenas.
VGW addressed its broader market plan, stating, “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 more states preparing legislation for 2026, sweepstakes operators now face a tightening environment across much of the United States.
Source:
New York Ban Spurs Wider Action Against Sweepstakes Casinos, LCB.org, December 10, 2025.
