Governor Hochul Signature Would Seal New York Sweeps Ban
New York’s Assembly unanimously approved Bill S05935A on Tuesday, sending the measure to Gov. Kathy Hochul for her signature. The legislation follows a 57-2 Senate vote last week and would ban online sweepstakes casinos that simulate casino-style games, bingo, lottery games, or sports betting when those offerings include cashout functionality.
If Hochul signs S05935A, the bill will immediately prohibit the operation and promotion of these dual-currency sweepstakes systems across the state, marking a major policy shift for New York’s digital gaming landscape.
What the bill actually bans and how it defines “sweepstakes casinos”
S05935A targets contests or promotions that “utilize a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalents, or any chance to win any cash prize or award.” In plain terms, any platform that lets players use virtual currency and then convert winnings into cash would be a prohibited category.
The measure also bars a wide range of supporting players from facilitating these offerings in New York, including suppliers, payment processors, geolocation providers, media affiliates, and certain investors. Regulators would be empowered to seek cease-and-desist orders and investigate suspected violations.
Enforcement, penalties, and where penalty money goes
Enforcement authority rests with the New York State Gaming Commission, the state police, and the state Attorney General. Entities or individuals found violating the law face gaming license revocation and minimum fines of $10,000. Collected fines are directed to the Commercial Gaming Revenue Fund, with proceeds earmarked for problem gambling education and treatment programs.
Who’s already been targeted — and who complied
The New York Attorney General’s office recently identified 26 platforms offering sweepstakes-style wagering using virtual coins and issued cease-and-desist letters. The group complied with those orders. Named platforms included Fliff, Fortune Coins, High 5 Casino, Sportzino, and VGW-operated brands Chumba Casino, Global Poker, and Luckyland.
Operators and service providers that rely on dual-currency mechanics will likely need to change business models, restrict New York access, or wind down offerings if the bill becomes law.
Connecticut and Montana show a growing national trend
New York would join Connecticut and Montana in explicitly outlawing cashout-focused sweepstakes casinos. Connecticut’s Public Act 25-112, signed by Gov. Ned Lamont last week, criminalizes sweepstakes tied to simulated gambling devices unless the promotion is related to the bona fide sale of goods or services — for example, certain in-store grocery promotions. Connecticut also bars prizes redeemable for cash, and violations can carry penalties under the state’s professional gambling statutes, including a Class A misdemeanor.
Montana’s Senate Bill 555, signed by Gov. Greg Gianforte in May, likewise amended state gaming law to prohibit dual-currency sweepstakes casinos. That law becomes effective October 1, and knowing violations can be prosecuted as felonies carrying up to 10 years in prison.
Industry pushback, player options, and what to watch next
Industry groups criticized the Assembly’s vote. Jeff Duncan, executive director of the Social Gaming Leadership Alliance, warned the measure “threatens a vibrant digital entertainment sector while offering players no safer alternatives.” The SGLA is led by VGW and includes members such as B-Two Operations.
For players, key takeaways are straightforward: sweepstakes games that offer cash equivalents will no longer be a legal option in New York if the governor signs the bill, while sweepstakes that award non-cash prizes or are tied to bona fide retail promotions may remain permissible in certain states. If you play real-money or promotional games, check your state’s rules and use available responsible-gambling tools, like deposit limits and time-outs, to manage risk.
For more on how sweepstakes changes could affect promotions and player options, see our overview of no-deposit bonuses.
The bill now awaits Gov. Hochul’s decision; if signed, New York will join a growing number of states tightening rules around dual-currency sweepstakes and simulated gambling online.