New York Senate Passes Bill Banning Sweepstakes Casinos

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: June 21, 2025

New York’s Senate is the most recent state legislative body to pass a measure banning online sweepstakes casinos. The chamber voted decisively to ban the platforms and penalize those involved with them.

Joseph Addabbo’s S5935 was approved

New York Senator Joseph Addabbo’s bill, S5935, passed the full Senate on Wednesday evening, June 11th, with a 57-2 vote. It has now been forwarded to the House and assigned to the Assembly Ways and Means Committee.

The bill specifically aims to ban online sweepstakes that mimic casino-style games, including video poker, bingo, lottery games, or sports betting. It defines online sweepstakes as digital contests or promotions that utilize a dual-currency payment system, allowing players to convert in-game currency into cash prizes, awards, or their equivalents.

Senate Bill 5935 would also prohibit a range of businesses, such as banks and media affiliates, from providing support to online sweepstakes casinos within the state.

Addabbo emphasized to the chamber that sweepstakes promotions without cash prizes or cash equivalents — such as those run by retailers like Starbucks — will remain legal, as the bill specifically targets ‘casino-style games.’

The New York State Gaming Commission (NYSGC), along with state police and the Attorney General’s Office (OAG), would have the authority to investigate and issue cease-and-desist orders to individuals and organizations that violate the law. Offenders could face fines in the five-figure range and risk losing their gaming licenses. Revenue from these fines would be directed to the Commercial Gaming Revenue Fund to help fund programs focused on problem gambling education and treatment.

Addabbo Emphasised that Online Gambling is Illegal

Addabbo reminded the Senate that all forms of online casino gaming are currently illegal in New York. He argued that if online sweepstakes are found to constitute casino gaming, they, too, should be prohibited.

He also asserted that online sweepstakes casinos target minors with just the click of a button.

Conclusion

With strong support in the Senate, S5935 now moves to the Assembly for consideration. If passed, New York will join a growing number of states cracking down on online sweepstakes casinos. Lawmakers say the bill is a step toward protecting consumers—especially minors—and keeping illegal gambling activity in check.