NY Lawmakers Advance Ban on Online Sweepstakes Gaming

Senator Joseph Addabbo and Assembly Bill A6745 led by Assemblymember Carrie Woerner—are gaining momentum as both chambers look to impose strict penalties on entities operating or ing unlicensed online sweepstakes gaming platforms.

Senate Bill S5935 was ed unanimously by the Senate Racing, Gaming and Wagering Committee and is now eligible to be presented on the Senate floor. The bill outlines a comprehensive prohibition against the operation, promotion, or facilitation of online sweepstakes casinos. It applies not only to license applicants and gaming employees, but also to d entities such as payment processors, geolocation providers, content suppliers, and media partners.

A similar path is unfolding in the Assembly, where Woerner’s A6745 recently ed the Assembly Racing and Wagering Committee without opposition. This bill seeks to amend New York’s racing and wagering laws to target online games using a dual-currency system—defined as those offering virtual tokens that can be exchanged for cash, effectively mimicking casino-style gambling.

Penalties, Enforcement, and Industry Implications

Violations of either bill could result in fines between $10,000 and $100,000 per incident, alongside potential revocation of gaming licenses. Enforcement responsibilities are shared among the New York State Gaming Commission, the Attorney General’s Office, and the State Police. According to the bill text, these measures are designed to shut down “untaxed and unregulated” gaming operations and curtail their “unfair competition” with the state’s licensed casino industry.

The justification for the legislation emphasizes how online sweepstakes games are accessible via mobile devices and home computers—including by minors—without adhering to New York’s consumer protection, anti-money laundering, or responsible gambling standards. “The legislation will provide a powerful deterrent to offshore and domestic illegal online gaming operators… and will provide robust tools to the Gaming Commission and the Attorney’s General Office to enforce the law,” the Senate version explains.

All revenue collected through fines is earmarked for the state’s Commercial Gaming Revenue Fund to aid programs focused on problem gambling education and treatment.

SPGA Pushback and Amendment Controversy

Despite bipartisan legislative , not everyone agrees with the bills’ direction. The Social and Promotional Games Association (SPGA) has criticized SB5935, particularly a recent amendment that delegates the definition of “dual-currency system” to the New York State Gaming Commission. The SPGA argues that this adjustment fails to address the broader issue and could expose legitimate businesses—including brands like Starbucks, Marriott, and McDonald’s—to legal risks due to their use of promotional sweepstakes.

Labeling the amendment a “political patch,” the SPGA warns it might increase uncertainty for companies engaged in marketing, loyalty programs, and mobile gaming. “The need for amendment already indicates a flaw in the bill,” an SPGA spokesperson said, adding that lawmakers should seek more informed, balanced regulation rather than pushing through unclear or overly broad restrictions.

The organization maintains that it is ready to collaborate with legislators to craft modern, well-defined legal frameworks that protect consumers while preserving space for innovation in digital entertainment and commerce.

Broader Legislative Landscape Across the U.S.

The legislative efforts in New York are part of a larger national movement to curb online sweepstakes gaming. Louisiana’s Senate recently ed Senate Bill 181, which mirrors New York’s initiatives by seeking to outlaw sweepstakes-based gaming tied to online casino and lottery platforms. The bill now moves to the Louisiana House after receiving unanimous Senate approval.

Montana’s legislature has also approved Senate Bill 555, which awaits the governor’s signature and would make Montana the first state to enact a law specifically banning sweepstakes casinos. Similar bills are being considered in Illinois, Maryland, and Connecticut, though a comparable proposal was recently shelved in Mississippi.

With both S5935 and A6745 progressing and the legislative session set to conclude on June 12, New York lawmakers face a tight deadline to finalize the measures and possibly enact one of the nation’s most robust prohibitions against online sweepstakes casinos.

Source:

New York committee es bill to ban online sweepstakes games, sbcamericas.com, May 1, 2025.