New York Ban Spurs Wider Action Against Sweepstakes Casinos

New York’s newly enacted prohibition on sweepstakes casinos signals a major shift for dual-currency gaming as more states prepare additional rules for 2026. The law, signed after months of delay since legislative approval in June, immediately barred platforms that offer casino-style or sports-style products using redeemable game currencies.

New York Finalizes Its Prohibition

Senate Bill 5935 took effect upon signing and applies not only to operators but to partners that support sweepstakes platforms. Technology providers, payment processors, media affiliates, geolocation firms and financial institutions may face fines ranging from $10,000 to $100,000 per violation, with added risks to existing or future licenses.

The Social Gaming Leadership Alliance criticized the decision, stating that Hochul “chose a short-sighted path” by banning the sector entirely.

New York regulators had already moved against the model. The attorney general sent cease-and-desist notices to 26 gaming platforms earlier in the year, prompting major companies including Chumba Casino, LuckyLand Slots and Global Poker’s parent to withdraw before the bill reached the governor.

Industry estimates show the state produced roughly $762 million in sweepstakes sales and more than $250 million in net revenue in 2024, making it one of the largest markets affected by the ban.

Bills Filed in Florida, Maine and Indiana

Three states advanced new proposals shortly after New York completed its prohibition. In Florida, Representative Berny Jacques introduced the 86-page House Bill 591 for the 2026 session. It classifies “operating, conducting or promoting” internet gambling as a third-degree felony and strengthens the existing structure that supports the Seminole Tribe’s gaming position. A comparable bill failed in 2025.

Florida accounts for more than $1 billion in operator sales. The Social Gaming Leadership Alliance opposed the new 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,” adding, “HB 591 laudably seeks to stop illegal gambling… but fails to account for how lawful promotional sweepstakes operate in Florida.”

In Maine, Senator Craig Hickman introduced LD 2007, which establishes penalties up to $100,000. The state’s gambling control director previously warned consumers that sweepstakes casinos operated outside regulated standards. Indiana Representative Ethan Manning also filed House Bill 1052, defining sweepstakes activity and outlining civil and criminal consequences, while also setting rules tied to tobacco and electronic cigarette distribution.

Ongoing Regulatory Pressure Nationwide

New York’s law joins measures passed this year in California, Connecticut, Montana, Nevada and New Jersey. In states where prohibitions failed to advance, regulators leaned on existing authority. Louisiana’s governor declined to sign a proposed ban, but regulators later issued 40 cease-and-desist notices. Additional orders came from authorities in Arizona, Delaware, Michigan, Minnesota, Pennsylvania, Tennessee and West Virginia. The West Virginia attorney general also issued subpoenas.

VGW withdrew from Canada and 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 bills already introduced for 2026, sweepstakes casinos face increasing limits across the country.

Source:

“NY governor signs sweepstakes casinos ban, three states introduce similar bills”, igamingbusiness.com. December 8, 2025