New York Sweepstake Ban Renews Push for Regulated iGaming

New York State Senator Joseph Addabbo, a long-time proponent of regulated iGaming, is using the state’s newly enacted ban on online sweepstakes casinos to push for a broader legal online gambling framework.

Governor Kathy Hochul signed Senate Bill 5935 sponsored by Addabbo into law on 5 December, officially outlawing both the operation and promotion of online sweepstakes casinos in New York.

Under the new measure, banks, payment processors, geolocation firms, gaming suppliers, platform providers and media partners are prohibited from supporting sweepstakes casino activity. The law empowers the New York State Gaming Commission and the Attorney General to impose penalties on violators, including jeopardising current gaming licences or future eligibility.

A Step Toward Regulated iGaming

New York currently limits online gambling to sports betting, but Addabbo views the sweepstakes ban as a critical precursor to legalising full iGaming.

“The signing of this bill is not the conclusion, but a necessary move toward responsibly modernising online gaming in New York,” Addabbo said. “By shutting down unsafe and unregulated sweepstakes casinos, we’re making clear that any online gaming in this state must be legal, supervised and built around strong consumer protections.”

With the downstate land-based casino licensing process nearing its final phase and the sweepstakes loophole closed, Addabbo believes the state is well-positioned to begin more serious discussions on legalising iGaming, potentially during the upcoming budget cycle.

He added: “My focus remains on safety, preventing gambling harm, raising significant revenue and ensuring New York stays competitive with neighbouring states.”

New York now joins California, Connecticut, Montana, Nevada and New Jersey in banning online sweepstakes casinos. Full iGaming, however, is currently legal in only seven U.S. states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island and West Virginia.

Whether more states will move toward legal iGaming remains uncertain, but Addabbo is aiming for New York to be among the next to join.