A bill to ban sweepstakes-style casino platforms is now awaiting New York Governor Kathy Hochul’s decision, as lawmakers have granted final approval to the measure. Now the governor has until December 31 to either sign it into law or block it from taking effect.
Bill Advances to the New York Governor’s Office
State Senator Joseph Addabbo’s bill, SB 5935, was unanimously approved by the Assembly in mid-June. Addabbo, who chairs the Racing, Wagering, and Gaming Committee, easily guided his bill through the upper chamber. With the bill now on the governor’s desk, a 30-day countdown has begun, during which Governor Hochul can either sign the bill into law or veto it. If she takes no action, SB 5935 will automatically become law.
Senate Bill 5935 seeks to officially ban the dual-currency model commonly used by sweepstakes casinos. In this system, players buy one type of virtual currency while receiving a secondary promotional currency that can be exchanged for real-world value. The bill’s scope goes beyond just the operators. Payment processors, content suppliers, and affiliate marketers involved with sweepstakes casinos could also face legal consequences if they continue to support these illegal activities.
How Would the Bill Impact Sweepstakes Casinos?
If SB 5935 becomes law, sweepstakes casinos in New York would face strict limitations that could cripple their operations. Since the bill targets the dual-currency sweepstakes model, platforms would no longer be able to offer virtual coins for purchase alongside a redeemable promotional currency. Without this system, the key mechanism that enables players to win cash-out prizes would essentially be eliminated.
Operators would have few options going forward, such as shifting to entertainment-only social casinos that use non-redeemable tokens and offer no real-world payouts. However, this model is less profitable and generally leads to lower user engagement. Another option would be to seek a fully regulated gambling license, but since New York does not currently allow online casino gaming, that route is essentially off the table.
Some advocacy groups, like Social Gaming Leadership Alliance (SGLA), have pushed back against SB 5935, but as the project is now on Governor Hochul’s Desk, it has made one more major step in getting fully accepted. If that becomes the case, the New York State Gaming Commission (NYSGC) would be tasked with interpreting and enforcing the law.
New York isn’t the only state considering such a ban, and is in fact behind others, as recently California ruled a ban on sweepstakes casinos starting from January 1, 2026. With the two largest US markets potentially out of reach, the long-term sustainability of the sweepstakes casino model in the United States is becoming more uncertain.