The New York Senate has passed a bill aimed at banning online sweepstakes casinos and sportsbooks that use dual-currency systems, intensifying efforts to clamp down on what state officials have described as unlawful and unregulated gambling operations.
The legislation, Senate Bill 5935A, sponsored by Sen. Joseph Addabbo Jr., was approved by a 57-2 vote and now moves to the state Assembly for further consideration. If enacted, the bill would prohibit the operation, promotion, or facilitation of online sweepstakes games that simulate casino-style gambling and offer cash-redeemable virtual currencies.
“The guardrails and the safeguards that we painstakingly take efforts to do when we do mobile sports betting or iGaming are not there with most of these sweepstakes casino sites,” Addabbo said in a March interview with Covers.
The bill outlines fines ranging from $10,000 to $100,000 for violators, and stipulates that entities found in breach—such as operators, affiliates, banks, and media platforms—could also lose their gaming licenses, should they hold one.
“They’ve been targeting minors and have been allowing people to game illegally. We’re taking a good step to avoid that,” Addabbo said during Wednesday’s Senate vote.
The measure follows a coordinated enforcement push by New York Attorney General Letitia James, who last week announced cease-and-desist orders against 26 platforms. All have agreed to halt the sale of virtual sweepstakes coins in the state.
“New York law prohibits online platforms from offering gambling that involves risking something of value, including virtual coins that can be redeemed for cash or prizes,” the Attorney General’s office said in a press release.
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure, and unlawful,” said Brian O’Dwyer, chair of the New York State Gaming Commission. “I have been very vocal about the need to crack down on these operations, and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market.”
Addabbo emphasized that the legislation does not target traditional promotional sweepstakes from retailers like Starbucks or Jersey Mike’s, so long as they do not mimic casino-style gambling or involve exchangeable currency.
“Until we legalize online gaming in New York, we do not want the illegal market to expand, to grow, to target minors or those that have problems,” he said, noting that fines collected would fund problem gambling programs.
With this move, New York joins Connecticut, Louisiana, and Montana in pursuing legislation aimed at curbing sweepstakes gaming practices that regulators argue are skirting existing gambling laws.
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