How the sweepstakes ban clears the path for New York iGaming

Summary

Governor Kathy Hochul signed Senate Bill 5935 (sponsored by Senator Joseph Addabbo) into law on 5 December 2025, prohibiting the operation and promotion of online sweepstakes casinos in New York. The new law bars financial institutions, payment processors, geolocation providers, content suppliers, platform providers and media affiliates from supporting sweepstakes operators. The New York State Gaming Commission and the Attorney General can enforce the ban, with penalties that include potential loss of a gaming licence or eligibility for one.

Senator Addabbo frames the ban as a necessary precursor to properly regulating iGaming in the state. With land-based casino licensing advancing, he says New York is now better positioned to hold meaningful discussions about legalising and regulating online casino play, potentially as part of the upcoming budget process. The move follows similar sweepstakes bans in several other US states, while fully regulated iGaming currently exists in seven US states.

Key Points

SB 5935 was signed into law on 5 December 2025, outlawing online sweepstakes casinos in New York.
Support services (payments, geolocation, platform/content suppliers and affiliates) are prohibited from facilitating sweepstakes operators.
The New York State Gaming Commission and the Attorney General can apply penalties, including licence consequences.
Senator Joseph Addabbo presents the ban as a step towards legalising and regulating iGaming with stronger consumer protections.
Progress on land-based casino licences strengthens the state’s position to debate comprehensive iGaming regulation, possibly via the budget process.
Only seven US states currently permit regulated iGaming; New York would be a major new market if legalisation follows.

Context and relevance

This law closes a long-exploited loophole that allowed sweepstakes-style sites to operate in a grey market. That matters for operators, affiliates, payment firms and suppliers because it changes the legal landscape overnight — companies that previously relied on sweepstakes models will need new routes to market or risk enforcement action. For policymakers and investors, the move signals a shift towards a tightly regulated online casino market in New York, with potential tax revenue and player-protection frameworks on the agenda. It also aligns New York with other states that have already outlawed sweepstakes offerings, while increasing competitive pressure to match neighbouring regulated markets.

Why should I read this?

Plain and simple: lawmakers just shut the loophole that let sketchy online “sweepstakes” casinos run riot. If you work in iGaming, payments, affiliate marketing or regulation, this short piece tells you the next play — legalisation talks look more realistic now and licences could follow. We’ve read the announcement so you don’t have to — quick, clear and to the point.

Source

Source: https://igamingexpert.com/regions/north-america/new-york-igaming/