Governor Kathy Hochul has signed Senate Bill S5935A into law, banning dual-currency "sweepstakes" casinos across New York. The measure took effect as one of the most significant gambling-policy moves of the 2025 session.
What the law targets
Sweepstakes casinos sold one virtual currency for play and gave away a second currency that could be redeemed for cash prizes, arguing this made them promotional sweepstakes rather than gambling. That model let them operate in New York and most other states without a gaming licence — and without the consumer protections, age controls and taxes that apply to regulated operators.
S5935A prohibits exactly this dual-currency structure, effectively pushing sweepstakes operators to exit or geo-block the New York market.
What it signals
Analysts noted that Hochul's willingness to sign the ban could hint at a preference for a properly regulated alternative over an unregulated grey market — a reading that iGaming supporters hope bodes well for future online casino legalization. For now, the practical effect is clear: another online option has closed for New Yorkers, and legal, state-regulated online casino still does not exist. See our full explainer.