Hochul’s desk receives the New York Sweepstakes Gaming Ban Bill.

On Monday, Gov. Kathy Hochul received a measure that would outlaw online sweepstakes casinos, which was approved by the New York state Assembly and Senate this summer.

State Sen. Joseph Addabbo’s bill, SB 5935, unanimously passed in the Assembly in mid-June. Addabbo, the chair for the Racing, Wagering, and Gaming Committee, had no trouble pushing his bill through the upper chamber.

The bill’s arrival on the governor’s desk triggered a 30-day clock in which Hochul can either sign the bill into law or veto it. SB 5935 would immediately become law if she does neither.

If approved, New York outlawing internet sweeps would highlight what has been a catastrophic 2025 calendar year on the legislative front for the sector. Over the summer, California, New Jersey, Nevada, Connecticut, and Montana passed similar laws prohibiting sweeps.

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Online sweeps are prohibited by the bill, which defines them as “any game, contest, or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal, or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award, or cash equivalents, or any chance to win any cash prize, cash award, or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games, lottery games, bingo, or sports wagering.”

The New York State Gaming Commission (NYSGC) will have the authority to “determine what constitutes a dual-currency system” thanks to Addabbo’s law. It also goes beyond banning only operators, making it “unlawful for any applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to support the operation, conduct, or promotion of online sweepstakes games within the state of New York.”

Former U.S. Congressman Jeff Duncan, the executive director of the Social Gaming Leadership Alliance (SGLA), issued a statement at the time of the legislation’s passage in June, calling it “drafted based on fundamental misunderstanding of our industry” and expressing concern that it would “hurt businesses and the New York economy in ways lawmakers did not intend.”

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