New York sweepstakes casinos banned under signed bill
Summary
Governor Kathy Hochul signed Senate Bill 5935 into law on 5 December 2025, making it illegal to operate or promote online sweepstakes games in New York. The measure gives enforcement powers to the New York State Gaming Commission and the Attorney General, and sets fines of between $10,000 and $100,000 for violators, plus the potential loss of a gaming licence or eligibility for one.
The law also bars financial institutions, payment processors, geolocation providers, gaming content suppliers, platform providers and media affiliates from supporting online sweepstakes operations. SB 5935 was introduced in March and is sponsored by Senator Joseph Addabbo; the state senate passed anti-sweepstakes legislation in June before the bill was delivered to the Governor in early December.
Key Points
- Governor Kathy Hochul signed SB 5935 on 5 December 2025, banning online sweepstakes casinos in New York.
- Enforcement by the New York State Gaming Commission and the Attorney General may result in fines of $10,000–$100,000 and loss of gaming licence or eligibility.
- The ban explicitly prevents banks, payment processors, geolocation services, content and platform providers and affiliates from supporting sweepstakes games.
- SB 5935 was introduced in March and sponsored by Senator Joseph Addabbo; the senate previously passed anti-sweepstakes measures in June 2025.
- Separately, New York is advancing a regulated land-based casino expansion, with three projects approved for licensure consideration and heavy licence fees and tax rates planned.
Content Summary
The article explains the scope of the new law and its potential sanctions, plus its reach into third-party suppliers and payment channels. It places the ban in the broader context of New York’s gambling policy: while online sweepstakes operations are now prohibited, the state is simultaneously moving forward with land-based casino expansion.
The New York State Gaming Facility Location Board approved three final applications — Bally’s Bronx, Hard Rock Metropolitan Park and Resorts World New York City — which the Gaming Commission will consider for licences. The Board’s consultants project nearly $1bn in incremental annual gaming tax revenue by 2036 and around $7bn between 2027 and 2036, plus $1.5bn in licence fees. Approved projects must pay a $500m licence fee, meet a $500m minimum capital investment and will face minimum tax rates of 25% for slot machines and 10% for table games; problem-gambling programmes are forecast to receive about $10.7m annually.
Context and Relevance
This is a significant regulatory shift that closes a legal grey area exploited by sweepstakes-style gaming operators and their ecosystems. The law targets not just operators but also the payments, geolocation and affiliate channels that enabled these services — meaning a broad set of businesses will need to reassess compliance and risk exposure.
For the iGaming industry, the move signals that New York will pursue tightly regulated, taxed land‑based growth while shutting down unregulated online alternatives. Operators, affiliates, payment providers and content platforms with US exposure should take immediate note and review their New York-facing activity.
Why should I read this
Short and blunt: if you work in iGaming, payments, affiliate marketing or run sweepstakes-style services — this changes the rules overnight. The state has effectively pulled the plug on sweepstakes casinos and is rolling out big‑ticket, tightly regulated land‑based licences at the same time. Read it so you don’t get caught offside.
Author style
Punchy — this is a major regulatory development for the US iGaming market. If you have any commercial ties to sweepstakes operations, payment processing or affiliate channels, the detail matters.
Source
Source: https://igamingexpert.com/regions/north-america/new-york-sweepstakes-ban/
