Sweepstakes Casinos Illegal In New York After Governor Signs Bill

Following in the footsteps of several other states, New York passed a law banning online sweepstakes casinos. The ban covers not just operators but also key service providers such as payment processors and geolocation companies.

How the New York Sweepstakes Ban Became Law

Introduced by Sen. Joseph Addabbo, Jr. (D) in March, the bill, which led to the ban, was passed by the state legislature in June and signed by Gov. Kathy Hochul on Dec. 5. The ban took effect immediately.

Most major operators had already exited the state after the legislature passed the bill in June, which effectively made New York a closed market for months for legal online sweepstakes casinos.

Scope and Rationale of Banning Sweepstakes Casinos

The bill amended the Racing, Pari-Mutuel Wagering and Breeding Law, making it unlawful for “any applicant, licensed entity, gaming employee, key employee, individual investor or investment firm, board member, or any other person or entity” to operate, conduct, or promote online sweepstakes games in New York.

The ban didn’t pass without criticism from residents. The public comment section of the bill’s official page included stern remarks from sweepstakes players who felt that the legislature was acting in the interest of gambling companies that see online sweepstakes operators as competitors, and not Empire State citizens.

“Sweepstakes gaming has become an important industry that contributes significantly to the economy by generating jobs, business opportunities, and state tax revenues,” one person wrote. “By banning these promotions, the state risks driving players to unregulated markets, which lack the strict consumer protections currently in place. The existing sweepstakes model operates within a structured, legal framework that ensures fair play, responsible gaming, and financial transparency.”

Banning Sweepstakes: A Growing Trend

The New York Attorney General had already taken action against online sweepstakes casinos in March 2025, sending cease-and-desist letters to 26 platforms and requiring them to stop selling sweepstakes coins in New York.

Eight other states have already enacted bans that are in place or will go into effect soon.

  • California (in Jan. 2026)
  • Connecticut
  • Delaware
  • Idaho
  • Michigan
  • Montana and Nevada
  • New Jersey
  • Washington

States that have issued cease-and-desist orders or have operators that have blocked access include Louisiana, Maryland, Mississippi, Kentucky, Vermont, Arkansas and Alabama.

Other States May Follow Suit

Virginia regulators have signaled interest in more power over sweepstakes casinos and could see legislation in 2026 after the Virginia Lottery complained it lacks cease-and-desist authority other states enjoy.

Arkansas, Florida, and Maryland all failed to pass sweepstakes bans last year and legislators may refile bills in 2026.