Gov. Hochul Signs Bill For New York To Ban Dual-Currency Sweepstakes Gaming

It was a busy seven days of gambling news in New York last week

On top of the three downstate casinos receiving approval from the New York Gaming Facility Board last Monday, Gov. Kathy Hochul signed a bill on Friday to ban dual-currency sweepstakes gaming.

The move makes New York the sixth state to make the legal choice to ban sweepstakes casinos. It also could be another sign that New York online casinos are moving closer to being a reality.

What the Dual-Currency Sweepstakes Ban Means

The legislation that was signed was S5935A, which was originally introduced by Sen. Joseph Addabbo Jr. back in March.

It was a bill that had a lot of legislative support, as it passed the Senate with a 57-2 vote in June. The State Assembly was even stronger in its backing, giving the bill a unanimous 141-0 vote just days after receiving it from the Senate.

Hochul didn’t rush to sign the bill into law, which left the future of the gaming format in question. However, she officially put the ban in place last week.

The bill aims to remove dual-currency sweepstakes gaming in the state that has a similar look and feel to casino-style gaming and sports betting. They use a second currency, like sweepstakes coins, but still offer cash prize options.

Any sweepstakes games that don’t award cash prizes or cash equivalents will not be prohibited in New York.

Along with banning their legal operation in New York, the state can also take action against any gaming operators or affiliates that take or supply revenue from the dual-currency sweepstakes games.

A minimum fine of $10,000, to a maximum of $100,000, has been set for an operator or affiliate offering any dual-currency sweepstakes gaming in New York. That same also applies for accepting revenue from the prohibited companies.

Social Gaming Leadership Alliance Pans Bill

Upon the legislation being signed, top sweepstakes operators were quick to take action to remove their services from New York.

Among the operators to leave were Novig and ProphetX. They informed customers via email that they were no longer able to offer their services in the state.

The Social Gaming Leadership Alliance spoke out against the decision by Gov. Hochul to sign the sweepstakes ban into law. In a press release, Executive Director of the SGLA Jeff Duncan said:

“Players, operators, and voters all made their position clear: they didn’t want a ban on this popular, safe form of entertainment. Governor Hochul had the opportunity to protect consumer choice and New York’s economic interests. Instead, she chose a short-sighted path, closing the door on choice, innovation, and hundreds of millions in economic activity.”

The SGLA notes that Social Plus games contributed over $230 million to New York’s economy in 2024. They also believe that under regulatory framework, dual-currency gaming could generate $80 million in annual state revenue for New York.

Another Step Toward Online Casinos in NY?

This ban puts New York in a group with New Jersey, California, Connecticut, Montana, and Nevada as states that have taken such action against dual-currency sweepstakes games.

New Jersey and Connecticut are both states that have legalized online casinos. The action is something that state legislators do as they aren’t able to regulate and generate tax revenue from these types of games.

New York has already legalized online sports betting and is the largest market in the US when it comes to that.

The addition of three downstate casinos will further expand New York’s gambling footprint.

Bringing in online casinos in New York seems like a logical step in the years ahead. In the seven states where it is legal, iGaming has brought in a large amount of tax revenue. New York legislators would be able to dictate that tax rate, which could easily add over $1 billion a year.