New York Senate Overwhelmingly Passes Anti-Sweepstakes Bill, Heads to Assembly

A Decisive Senate Victory

The New York Senate approved Senate Bill S5935A with a 57-2 vote, aiming to outlaw online sweepstakes games that use dual-currency systems for cash prizes.

Sponsored by Senator Joseph Addabbo Jr., the bill targets platforms mimicking casino games, like slots and poker, without regulatory oversight. “These sites lack the guardrails we ensure for legal betting,” Addabbo said.

The bill now moves to the Assembly, where its companion, A6745, awaits action before the June 12 session ends.

Targeting Unregulated Sweepstakes

Sweepstakes platforms, like Chumba and Fliff, use virtual coins players buy or earn, redeemable for cash, to simulate gambling. S5935A bans these dual-currency games, covering slots, video poker, blackjack, roulette, craps, keno, bingo, and sports betting, but spares non-cash prize contests.

“Betting cash-redeemable coins is gambling,” said Attorney General Letitia James, whose office issued cease-and-desist letters to 26 operators in June. All complied, halting coin sales in New York.

Addabbo stressed the bill protects against fraud and addiction, with fines funding problem gambling programs. New York’s $2.08 billion sports betting market in 2024.

Violators of S5935A face fines from $10,000 to $100,000 per infraction, plus potential license loss or ineligibility. The bill prohibits not only operators but also banks, payment processors, geolocation providers, and media affiliates from supporting sweepstakes. “This is a powerful deterrent,” Addabbo said during a March committee hearing.

The Social and Promotional Games Association (SPGA) criticized the bill as “overreach,” arguing it threatens legitimate businesses. “Lawmakers conflate legal sweepstakes with gambling,” an SPGA spokesperson said.

Assembly’s Parallel Push

The Assembly’s companion bill, A6745, sponsored by Assemblywoman Carrie Woerner, chair of the Racing and Wagering Committee, passed the Ways and Means Committee unanimously on June 6.

“These games are an on-ramp to problem gambling for teens,” Woerner said, echoing Addabbo’s concerns. A6745 mirrors S5935A, banning dual-currency systems and imposing identical penalties.

Introduced in March, it’s now before the Rules Committee, with the Assembly’s final vote pending. The bills’ alignment suggests strong bipartisan support, though the SPGA called A6745 “deeply flawed.”

New York’s legislative session ends June 12, pressing the Assembly to act swiftly.

Attorney General’s Crackdown

Parallel to S5935A, Attorney General James intensified efforts against sweepstakes. In June 2025, her office, with the New York State Gaming Commission, targeted 26 platforms, including High 5 Casino and McLuck.

“These casinos are illegal and dangerous,” James said, noting financial risks. The Commission’s Brian O’Dwyer labeled them “unscrupulous and unlawful.” All 26 operators agreed to stop selling sweepstakes coins.

VGW Holdings, behind Chumba and LuckyLand Slots, began phasing out its Sweeps Coins operations in New York on June 2, citing regulatory risks. “Compliance isn’t viable,” a VGW spokesperson said.

The Assembly’s vote on A6745 is critical. If passed, Governor Kathy Hochul’s signature could enact the ban by July, aligning New York with states like Maryland, where a similar bill awaits House approval. “We’re closing a loophole,” Addabbo said, eyeing iGaming legalization.

Fines will bolster programs like Gamblers Anonymous, serving 1,200 New Yorkers annually. But the SPGA’s opposition and potential lawsuits loom. If A6745 stalls, S5935A could resurface in 2026.