New York lawmakers have sent a bill that would ban sweepstakes casinos to Gov. Kathy Hochul, and her decision is due by Dec. 31, 2025. The proposal—called SB 5935—targets online sites that use a “free-to-play” setup but still let players win prizes that can be turned into cash.
If the governor signs the bill, it could make it illegal to run or promote many sweepstakes-style casino games in New York, and it could also put pressure on the companies that help those sites operate, like payment services and marketing partners.
What the Bill Would Ban
The bill focuses on an online sweepstakes game that uses a dual-currency system and “simulates” casino-style gaming. In sweepstakes casinos, this usually means one currency is just for play, while another currency can be redeemed for cash prizes (or something similar).
The bill also lists examples of casino-style games it is trying to cover, including slots, video poker, table games, lottery-style games, bingo, and sports wagering. One key detail: the New York State Gaming Commission would get a big role in deciding what counts as a “dual-currency” setup.
Penalties and Enforcement: Who Can Get in Trouble?
If signed, the bill includes financial penalties from $10,000 up to $100,000 per violation. It also says violators could lose a gaming license or become ineligible for one (which matters most for already-licensed gambling companies and partners working with them).
Enforcement would involve the Gaming Commission, the attorney general, and state police. The bill also says it would take effect immediately if it becomes law, meaning companies may need to react fast to avoid breaking the rules.
Who This Could Impact
The language isn’t only aimed at operators. It also tries to cut off support systems that help sweepstakes casinos run and find players. That includes payment processors, geolocation providers, media affiliates, content suppliers, and platform providers.
For players, the biggest change could be access. If the bill becomes law, more sweepstakes casinos may block New York users, remove prize-style play, or leave the state entirely. Some companies may also try to redesign how their games and currencies work to avoid being labeled a sweepstakes casino.
One example being watched is ClubWPT Gold, which has talked about shifting toward a poker education approach. Reports say it moved to a single currency called Chips, tied to purchases like Hand Analysis tools, while still offering play that can lead to cash redemptions. If the bill passes, New York’s regulators could decide whether setups like that still count as a banned model.
What Happens Next, and Why it Matters Beyond New York
Because the bill was delivered on Dec. 1, 2025, the governor’s choices are simple: sign it, veto it, or do nothing (often called a pocket veto) within 30 days. Either way, this decision will be closely watched by players, operators, and lawmakers in other states.
New York has already taken action against some sweepstakes sites through enforcement efforts like cease-and-desist orders, including work announced by Letitia James. Supporters of the bill say a clear law is stronger than case-by-case crackdowns. Critics argue a broad ban could block legitimate promotions and push players toward less safe options.
If New York signs this bill, it would also add to a growing list of states taking a harder line on sweepstakes-style casino gaming, including places like Connecticut, Montana, and New Jersey (with other states debating similar steps).
