New York Moves to Ban Online Sweepstakes

The New York Senate Racing, Gaming, and Wagering Committee unanimously passed SB 5935 on Tuesday, moving legislation to the Senate floor.

The bill, introduced by Sen. Joseph Addabbo, “prohibits online sweepstakes games and revenue from illegal markets,” specifically targeting those that simulate casino-style entertainment, including poker, slots, and sports betting.

Carrie Woerner, chair of the assembly’s racing, gaming, and wagering committee, introduced a companion bill that is awaiting further action.
Under Addabbo’s proposal, anyone found guilty of supporting or facilitating online sweepstakes gaming could be subject to strict penalties ranging from $10,000 to $100,000 per violation. Additional penalties include a potential loss of licensing.

New York doesn’t have legal iGaming, but it does have retail slots and online sportsbooks. The Empire State was the country’s largest sports betting market in 2024, generating $2.08 billion in revenue.

Enforcement of online sweepstakes would be conducted by several different entities, including the New York State Gaming Commission, state police, and the Attorney General’s office.

“Online real money ‘sweepstakes casinos’ have recently become widely available in New York over the internet on mobile devices and personal computers, including to minors,” the bill reads. “These products evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject.

“These products and operations are untaxed and unregulated. They present unfair competition to the state’s legal, highly regulated and economically important casinos.”

According to the American Gaming Association, illegal and unregulated operators took in $109 billion in wagers last year. The potential of this issue becoming a bigger problem has spurred other legislators around the country into action.

Maryland is among those seeking changes. The Old Line State unanimously passed a bill banning online sweepstakes in the Senate last week. It now awaits a hearing in the House of Representatives.

Lawmakers in Connecticut, Florida, Mississippi, and New Jersey have also filed bills.

The Social and Promotional Games Association released a statement in response to the proposed bills in New York, saying they “unconditionally oppose” any restrictions on sweepstakes gaming.

“We appreciate New York lawmakers’ formal recognition that social sweepstakes are a legal form of entertainment — you don’t need to outlaw something if it is already illegal,” the statement said. “But that’s where our appreciation ends. Albany legislators have no business dictating to New Yorkers what games they can play on their phones.

“This deeply flawed legislation is an affront to personal freedoms, an insult to New York voters, and a colossal waste of government resources.”