New York Enacts Full Ban on Online Sweepstakes Casinos

New York has officially prohibited the operation and promotion of online sweepstake casinos after Governor Kathy Hochul signed Senate Bill S5935 into law on December 5. The measure took effect immediately.

The new statute targets sweepstake-style casino platforms that use a dual-currency model where virtual coins can be redeemed or exchanged for cash, cash-like rewards, or similar monetary equivalents. Any platform offering games that can yield real-world prizes or cashable rewards is now deemed illegal within the state.

The legislation doesn’t stop with operators. It also bans all support services tied to sweepstake casinos, making it unlawful for game developers, technology vendors, payment processors, platform suppliers and affiliate marketers to promote or assist these operations in New York.

Penalties are severe: companies found violating the law face fines from $10,000 to $100,000 per offense and may lose existing gaming licenses or be barred from obtaining one in the future.

The immediate enforcement of the ban represents a major setback for sweepstake-focused gaming suppliers and affiliate networks such as Next.io that have relied on this model in the U.S. market. The move further signals New York’s growing resolve to tighten oversight of alternative gambling formats and close perceived regulatory loopholes.