A pivotal piece of legislation that could reshape New York’s digital gaming landscape has officially landed on Governor Kathy Hochul’s desk.
Senate Bill 5935, which proposes a comprehensive ban on online sweepstakes casinos, was delivered on December 1, triggering a 30-day review period. Governor Hochul has until December 31 to sign the bill into law, veto it, or allow it to lapse, a decision that will determine the future of the sweepstakes model in the Empire State.
The bill stands out nationally for its precise and aggressive language. Unlike broader bans in other states, SB5935 specifically targets the “dual-currency system” utilized by most sweepstakes operators—where a free “Sweeps Coin” currency is used to facilitate real-money redemptions.
The legislation grants the New York State Gaming Commission (NYSGC) expansive powers to interpret and classify these currency models, effectively future-proofing the ban against operators who might attempt to rebrand their tokens to skirt regulations.
Furthermore, the bill extends liability beyond the operators themselves, potentially implicating payment processors, platform providers, and marketing affiliates who support the sweepstakes ecosystem. This “broad net” approach aims to dismantle the infrastructure that allows these unregulated sites to thrive.
The timing of the bill puts immediate pressure on operators like ClubWPT Gold, which recently pivoted to a subscription-based education model using a single currency. Under the new law, the NYSGC would have the discretion to determine if such pivots are genuine structural changes or merely compliance workarounds.
If signed, New York would become the fifth state in 2025 to enact a legislative ban on sweepstakes casinos, joining markets like New Jersey and California.
While industry advocates, including the Social Gaming Leadership Alliance, are lobbying for a veto, arguing that the sector contributes over $230 million to the state economy, legislators appear determined to replace piecemeal cease-and-desist enforcement with a statutory prohibition.
The governor’s decision will likely signal whether New York intends to clear the deck for a potential future legalization of regulated, real-money iGaming.
