New York Senator Proposes Bill to Prohibit Sweepstakes Casinos

sweepstakes casinos. Senate Bill S5935, introduced on March 4, 2025, seeks to prohibit such platforms and curb unregulated gaming activities that generate revenue outside of licensed markets.

Defining Online Sweepstakes Games

The proposed bill provides a precise definition of online sweepstakes gaming, outlining it as:

“Any game, contest or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize, award, cash or cash equivalents, or any chance to win any price [sic], award, cash or cash equivalents and simulates casino-style games including but not limited to draw games, instant win games, keno, and bingo, and sports wagering. A sweepstake shall not include a game which does not award cash prizes or cash equivalents.”

If enacted, the legislation would effectively eliminate the operation of online sweepstakes casinos in New York by making their business models unlawful.

Sweepstakes casinos operate across most U.S. states as a legal substitute for traditional online gambling. These platforms offer a variety of digital casino-style games, including slot machines, table games, and live dealer experiences. Unlike state-regulated online casinos, sweepstakes casinos use a dual-currency model where players purchase virtual tokens, commonly referred to as gold coins, which do not have actual monetary value but allow participation in games.

Protecting Consumers from Unregulated Gambling

In a statement released by the New York State Senate, Addabbo emphasized that his proposed legislation aims to address the potential risks associated with unlicensed gaming and protect residents from harmful practices.

“To close this loophole, I will work to ban or incorporate sweepstakes casinos in the state, akin to current laws in Michigan, Idaho, and Washington, and I will push for igaming as a safe, effective alternative for online casino enthusiasts,” Addabbo stated.

If the bill moves forward, it could bring New York in line with other states that have already restricted sweepstakes-based online gambling models while potentially paving the way for a more regulated approach to internet gaming.

Source:

‘’Senate Bill S5935’’, nysenate.gov,