- On-line sweepstakes casinos using dual-currency schemes are actually banned in New York
- New York lately permitted three downstate casinos
- Sweepstakes proceed to face setbacks throughout the US
On-line sweepstakes casinos are actually unlawful in New York.
New York Gov. Kathy Hochul (D) banned on-line sweepstakes casinos that use a dual-currency association on Friday, Dec. 5, 2025. Her signing of the invoice banned such web sites and apps efficient instantly. (Picture: Shutterstock)
On Friday, New York Gov. Kathy Hochul (D) signed Senate Invoice 5935 into legislation. The statute prohibits on-line social gaming platforms from using twin forex schemes that basically enable gamers to gamble for cash. The measure grew to become efficient instantly upon the governor’s signature.
On-line sweepstakes recreation shall imply any recreation, contest, or promotion that’s obtainable on the web or accessible on a cell phone, laptop, or comparable system that makes use of a dual-currency system of fee permitting the participant to alternate the forex for any money prize, money award, or money equal,” the New York legislation reads.
SB5935 cleared the State Legislature in June. The New York Senate handed the sweepstakes on line casino ban with a 57-2 vote. Simply 4 days later, the State Meeting handed the measure unanimously, 141-0.
Hochul took her time in signing the statute, prompting sweeps proponents to suppose that they’d an opportunity of securing a veto. In the long run, the Democrat lent her help and killed on-line dual-currency sweepstakes video games.
Sweepstakes Ban Comes as Casinos are Licensed
Hochul’s signature comes solely days after a New York state authorities company advisable three downstate on line casino tasks for licensure. Multibillion-dollar on line casino bids within the Bronx and Queens are anticipated to obtain state-issued slot, desk recreation, and sports activities betting licenses earlier than the 12 months’s finish.
If the licenses are granted, as anticipated, Laborious Rock and billionaire Steve Cohen will proceed with their $8 billion Metropolitan Park growth at Willets Level. Resorts World will make investments $5.5 billion to overtake Resorts World New York Metropolis, and Bally’s Corp. is behind the $4 billion Bally’s Bronx complicated at Ferry Level Park.
In April, Las Vegas Sands, as soon as thought-about a frontrunner for a downstate New York on line casino license, deserted its Lengthy Island on line casino plan. The corporate cited issues about iGaming authorization as its cause for exit.
Although dual-currency sweepstakes casinos are unregulated on-line video games, and never the kind of iGaming state lawmakers are prone to think about in future legislative classes, eliminating the controversial promotional autos will probably appease the three downstate concessionaires and their enterprise outlooks.
Sweepstakes Finish Close to?
Twin-currency on-line sweepstakes platforms declare they function free-to-play social video games. The inclusion of the secondary forex, usually known as sweepstakes cash, can be utilized to enter promotional contests, with money prize redemptions obtainable.
State lawmakers, gaming regulators, and attorneys normal haven’t been shopping for what the sweeps platforms have been promoting. These pursuits say on-line sweepstakes casinos represent unlawful playing.
New York joins California, Connecticut, Idaho, Montana, New Jersey, and Washington in passing laws banning sweepstakes casinos. Arizona, Arkansas, Delaware, Louisiana, Maryland, Michigan, Mississippi, Nevada, Pennsylvania, and Tennessee have ordered sweeps out via state-issued cease-and-desist directives.
The Social Gaming Management Alliance (SGLA), an advocacy for the controversial apps and web sites, says state lawmakers and officers are speeding to judgment.
On-line social video games are a mainstream digital leisure class that delivers interactive board, card, and casino-style video games to thousands and thousands of Individuals. Operators present free-to-play experiences the place gamers can all the time take part with out fee, with non-compulsory in-game purchases to boost and lengthen gameplay,” the SGLA mentioned.
“The SGLA represents operators who, like many US retailers and different companies … market their digital leisure choices utilizing sweepstakes promotions. Our operators observe the identical established authorized ideas utilized by mainstream manufacturers and, importantly, supply another methodology of entry that’s simply obtainable and accessible,” the group added.