Hochul Signs New York Sweeps Ban Into Law

(UPDATES WITH NEW SGLA STATEMENT IN 8TH GRAF)

The online sweepstakes casino industry, which has taken a legislative battering in 2025, absorbed one more body blow Friday when New York Gov. Kathy Hochul signed S5935 into law and banned the form of gaming from the Empire State.

The bill, sponsored by state Sen. Joseph Addabbo, encountered barely any opposition or resistance in either chamber of the New York Assembly before being passed in June. S5935, however, was not delivered to Hochul’s desk until Dec. 1.

That started a 30-day window during which the governor could sign or veto the bill.

Much of the oxygen regarding gambling in the Empire State this year has been taken by the downstate casino licensing process. That is nearing a conclusion as the New York State Gaming Commission is expected to announce decisions on awarding licenses to Hard Rock Metropolitan Park, Resorts World New York City, and Bally’s Bronx before the end of the year.

New York is the sixth state to ban online sweepstakes casinos through legislation this calendar year, joining fellow large-market states New Jersey and California. Nevada, Connecticut, and Montana also enacted similar legislation, and sweeps are effectively banned in Louisiana via the attorney general’s opinion and in West Virginia due to subpeonas issued.

There are also multiple states, New York among them, that have issued cease-and-desist orders to sweeps operators.

A notable economic blow

A study conducted by Eilers & Krejcik at the request of the Social Gaming Leadership Alliance (SGLA) estimated that New York generated $762 million in online sweepstakes casino sales in 2024, accounting for more than 7% of the $10.66 billion in total sales nationwide. The study also estimated the Empire State generated $251.7 million in total market net revenue as the SGLA sought to have its platforms legalized through regulation.

The SGLA released a statement Monday blasting Hochul for signing the bill into law, claiming the legislation “had no industry consultation” and “restricts economic and innovation opportunities in the state.”

“Players, operators, and voters all made their position clear: they didn’t want a ban on this popular, safe form of entertainment,” said Jeff Duncan, Executive Director of SGLA. “Governor Hochul had the opportunity to protect consumer choice and New York’s economic interests. Instead, she chose a short-sighted path, closing the door on choice, innovation, and hundreds of millions in economic activity.”

Many sweeps operators had already exited New York due to the cease-and-desist letters issued by New York Attorney General Letitia James to 26 operators in March. One of the largest operators, VGW, had announced plans to shut down platforms Chumba Casino, Luckyland Slots, and Global Poker prior to Addabbo’s bill making substantial progress through the Assembly and formally exited the state Aug. 1.

The SGLA made efforts to have the social/sweeps games regulated in New York, as well as in California and New Jersey, but those efforts were rebuffed in all three instances. In the case of neighboring New Jersey, there was legislation introduced to regulate sweeps in January, but bill sponsor and Assemblyman Clinton Calabrese later changed tack and submitted an anti-sweeps measure in March that Gov. Phil Murphy eventually signed into law.

2026 may prove foreboding as well

Both Maine and Florida introduced legislation last week that could outlaw gaming with sweepstakes-style prizing. Maine LD 2007, submitted Wednesday by Sen. Craig Hickman to the state Senate, looks to eliminate any online sweepstakes game that uses a dual-currency system of payment and “simulates casino-style gaming” in a way that covers multiple verticals including lottery, bingo, and sports wagering.

The SGLA hit back at the legislative document via statement Friday, saying Hickman’s proposed legislation “would ban this social games category entirely, stifling innovation and stripping millions of dollars of economic activity from small businesses, advertisers and — ultimately — the state.” The organization again sought to be a willing partner to have sweeps regulated in the Pine Tree State.

The proposed legislation submitted by Florida State Rep. Benny Jacques, HB 591, does not directly target sweeps, but rather would ban all online gaming that is not conducted by the Seminole Tribe. There is similar language contained in HB 189, which advanced out of subcommittee in the lower chamber last month.

Duncan and the SGLA expressed opposition to Jacques’ bill, noting it “fails to account for how lawful promotional sweepstakes operate in Florida.”