Operators who break the rules face fines from $10,000 to $100,000 for each violation. These rules can now be enforced by the state gaming commission, the office of the attorney general, and the state police.
Senator Joseph Addabbo wrote the bill after months of complaints about these platforms. The timing works well since New York plans to hand out three commercial casino licenses before the year ends. These licensed venues will bring tax money to the state and follow proper rules.
The sweepstakes ban draws a better line between regulated and unregulated gaming choices. With these platforms gone, players who want casino games now have clearer options through legal online casinos in New York, which covers how licensed operators work and what protections the state requires—the kind of oversight that sweepstakes sites never had.
Attorney General Letitia James had already contacted 26 platforms earlier this year. Most of them stopped serving New York customers before Hochul signed the bill. The platforms used a system where players bought one type of coin but got another type free, and that second type could be turned into cash.
The law covers any internet game that uses two different currencies while copying casino-style play. This includes slot machines, card games, poker, bingo, and sports betting. Payment companies, location services, content makers, and advertisers who help these platforms also face penalties.
Brian O'Dwyer, who runs the state gaming commission, said the new rules create clear boundaries for what's allowed.
Major platforms like Novig and ProphetX had already told customers they were leaving New York. Many others blocked New York users right after the governor signed the bill.
New York becomes the sixth state this year to ban these platforms, joining California, Connecticut, Montana, New Jersey, and Nevada. The move comes as states nationwide examine how these websites work. Market research data shows the sweepstakes casino industry had maximized player purchases of up to $10.6 billion in 2024.
The bill passed both houses by very large margins, 141-0 in the Assembly and 57-2 in the Senate. It took Hochul several months to go through it and sign.
Assemblywoman Carrie Woerner, who handles racing and wagering issues, worried about young people getting access to these sites. She noted they can hook teenagers on the excitement of winning money.
The sweepstakes companies argue they provide entertainment and follow existing laws. Their trade group says states should work with them to create rules instead of blanket bans.
This ban arrives just as New York moves forward with its casino expansion. Three big casino projects in the Bronx and Queens got preliminary approval recently. Hard Rock and billionaire Steve Cohen plan to spend $8 billion on their Metropolitan Park project if they get final approval.
Gaming authorities in other states have taken similar steps. Regulatory enforcement patterns across Maryland, Delaware, and Tennessee forced many platforms to shut down over the past year, creating a pattern that New York now follows.
The licensed casinos will pay $500 million each for their permits plus ongoing taxes. Slot machines get taxed at 25% while table games face a 10% rate. That's unlike sweepstakes sites, which paid nothing to the state.
Industry representatives say they want continued discussions with officials about workable rules. For now, New Yorkers must wait for the licensed casinos to open or use other legal options.
