After gaining approval in the NYS Senate Racing, Gaming, and Wagering Committee, SB 5935 continues to move forward, putting the New York sweepstakes industry at risk. Senator Joseph Addabbo introduced the bill, seeking to penalize operators and suppliers connected to sweepstake casino services.
As the bill progresses, players find that sweepstakes casinos are exiting the state quickly to avoid legal issues. SB 5935 now heads to the Senate Floor and will require support from the majority to pass into law.
Decoding SB 5935: How New York’s Proposed Bill Could Reshape Sweepstakes Gaming
Senator Addabbo’s legislation would ban sweepstakes casinos outright and others from supporting operations. Financial institutions, payment processors, content suppliers, and media affiliates would not be allowed to work with sweepstakes operators.
As Sweepsy.com reported, the bill sets penalties for violations, with fines starting at $10,000 and as much as $100,000 per offense. Gaming licensing could also be at risk. The measure calls sweepstakes sites ‘online real money’ operators and states they are widely available in NY. The measure indicates that such operations do not provide consumer protection, responsible gaming, or meet anti-money laundering requirements.
New York online casinos are illegal, though Senator Addabbo has introduced legislation in previous years to support iGaming. A regulated iGaming industry would bring fresh revenues to the state, with the numbers estimated to surpass the earnings of the sports betting industry.
From March 31, 2024, to March 2, 2025, mobile sports betting generated over $1 billion in tax revenues for the state. According to the Senator, the numbers from online casinos will eclipse mobile sports betting because the population of iGaming users is much larger.
Removing illegal and unregulated services is one step in setting up a regulated market. According to the language of SB 5935, this includes sweepstakes casinos.
The Senator is also working on iGaming legislation in 2025, with the introduction of S2614. This time, Senator Addabbo stated he was ready to make provisions and concessions to bring iGaming to the state.
In an interview with Comped, Addabbo stated that he can’t be the only one pushing for iGaming, as Governor Kathy Hochul must become involved in the discussion. He hopes to see the governor take some initiative and show some leadership. Lack of governor support has hindered Adabbo in the past with previous iGaming bills.
Sweepstakes Sites Exit New York: A Direct Response to Legislative Pressure
As legal changes loom for the sweepstakes industry, several operators have exited the state to avoid legal prosecution. In late March, brands like Carnival Citi, Ding Ding Ding, Fortune Coins, High 5 Casino, Zula Casino, Hello Millions, and McLuck Casino restricted New York players.
Additional sites that made the list include:
- Sportzino;
- Chanced;
- Mega Bonanza;
- Jackpota;
- SpinBlitz;
- NoLimitCoins;
- Funrize;
- FunzCity;
- Fortune Wheelz;
- Play Fame;
- Pulsz Casino;
- Pulsz Bingo;
- RealPrize;
- Spree.
These operators do not want to face legal action in New York if the Senate bill were to pass into law. Exiting early can be a good strategy, but it leaves players without gaming options when sweepstakes gaming is still technically legal in the state.
Sweepstakes casinos operate based on federal laws, which makes gaming legal in most states, except where specific legislation bans services.
If the measure continues to move forward, other operators will likely remove services from New York. I also question whether operators like McLuck or Fortune Coins will return if the bill fails to gain additional traction in the Legislature.
SPGA Advocates Rally Against Regulatory Overreach
While Addabbo and other lawmakers support the bill against sweepstakes gaming, the Social and Promotional Games Association (SPGA) calls the proposal “deeply flawed” and a colossal waste of resources.
In a statement, the SPGA stated that it unconditionally opposes the measure. The association called the legislation “an affront to personal freedoms, an insult to New York voters, and a colossal waste of government resources.”
The SPGA reports that the bill will criminalize promotional sweepstakes used by small businesses in NY, risking millions in revenue and thousands of jobs. Larger companies such as the Marriot would also be affected. Businesses often giveaway prize packages, gifts, and rewards as part of promotional sweepstakes, which the SPGA says will be affected by the bill.
According to the SPGA, the correct approach is to provide sensible regulation and taxation of social sweepstakes games to support innovation, consumer choice, and the New York economy.
A Turning Point for Sweepstakes Gaming in New York
SB 5935 represents a critical moment for the future of sweepstakes gaming in New York. While the bill aims to eliminate unregulated operators under the guise of consumer protection, it has already caused widespread disruption across the industry—impacting players, businesses, and jobs.
The debate regarding sweepstakes gaming and their legality is far from over, with the Social and Promotional Games Association and others speaking out. For now, the state is at a crossroads with major implications for the gaming landscape ahead.
Will real-money iGaming legislation finally move forward in New York? Will sweepstakes gaming be a casualty of the pending legislation? All eyes will be on the state in the coming months as several pieces of gambling legislation are under consideration.
Featured image credit: DepositPhotos.com
