NY governor signs sweepstakes casinos ban, three states introduce similar bills
Summary
Punchy take: state regulators are tightening the net on dual‑currency sweepstakes casinos — and New York just slammed the door. Governor Kathy Hochul has signed legislation outlawing these operations after a summer of enforcement, and Florida, Indiana and Maine have now filed fresh bills that would further restrict or criminalise sweepstakes‑style online gaming in their jurisdictions.
The article explains the scope of the New York move, the new proposals in three states, industry pushback and the wider pattern of state regulators issuing cease‑and‑desist letters and passing bans. It also includes market context: sweepstakes operators generated an estimated $10bn in 2024, with New York previously accounting for around $762m of that revenue and Florida representing roughly 8.5% of operator sales in 2025.
Key Points
- New York Governor Kathy Hochul signed a bill banning dual‑currency sweepstakes casinos, formalising earlier enforcement after AG Letitia James issued cease‑and‑desist letters.
- Lawmakers in Florida (HB 591), Indiana (HB 1052) and Maine (LD 2007) have introduced bills this month that would outlaw or impose heavy penalties on sweepstakes casino operations.
- Florida’s HB 591 is an extensive 86‑page bill that seeks to strengthen the Seminole tribe’s gambling monopoly and makes operating internet gambling a third‑degree felony; Social Gaming Leadership Alliance disputes the classification of lawful promotional sweepstakes as illegal gambling.
- Maine’s proposed law would allow penalties up to $100,000 for operators; Indiana’s bill defines sweepstakes games and sets out civil and criminal penalties alongside unrelated product distribution provisions.
- Regulatory and legislative actions against sweepstakes casinos have accelerated in 2025, with bans passed or enforcement actions in multiple states including California, Connecticut, Montana, Nevada, New Jersey and six bans signed in 2025.
- State regulators in numerous states (Arizona, Delaware, Michigan, Minnesota, Pennsylvania, Tennessee and West Virginia) have issued cease‑and‑desist letters; West Virginia also issued subpoenas to operators.
- Industry scale: an Eilers & Krejcik study estimated $10bn in sweepstakes sales in 2024; New York represented $762m of that, and Florida accounted for more than $1bn in 2025 according to estimates.
- Operators are reacting: VGW withdrew from Canada to focus on the larger US market amid regulatory pressure, though the company said the Canada exit was not due to regulation there.
Why should I read this?
Short answer: if you follow gaming regulation, affiliate or operate in the social/sweepstakes space — this matters. States are rapidly turning what were once grey‑area promotions into explicit offences or heavily regulated activities. Read this to know which markets are closing, what penalties are being proposed, and how industry groups are pushing back. It’s brisk, it’s relevant, and it tells you where to expect the next regulatory headaches.
Source
Source: https://igamingbusiness.com/gaming/new-york-sweepstakes-casinos-ban-indiana-florida-maine/
