New York Bill Seeks To Ban Sweepstakes Gaming

New legislation out of New York could spell big trouble for sweepstakes gaming. State Senator Joseph Addabbo proposed a new law that would ban sweepstakes gaming in the state.

Per Addabbo's Bill 5935, all online contests with a "dual-currency" system that can be used in exchange for cash would be banned. Addabbo also lays out the types of games that would be banned in this bill, and it includes sports gambling sites that have exploded in popularity.

Why Go After Sweepstakes Games?

Sweepstakes games are nothing new. Older Millennials like me are probably familiar with Ed McMahon and the Publishers' Clearing House sweepstakes games that saw Ed and staffers run up to homeowners with oversized checks with millions in prize money.

Sweepstakes games technically have no cost to play; signing up is all players need to get in.

Today, that's evolved with virtual currencies or tokens that allow players to play for free and in some cases exchange those tokens for actual cash. But because these types of games don't actually require money to play, they skirt around regulation. Much to ire of lawmakers. 

During the New York Gaming Commission's opening meeting of the 2025 calendar year, chairman Brian O'Dwyer pledged to come down on sweepstakes games, saying: "I can assure my fellow Commissioners and the public that if this activity continues and is found to be in violation of New York State's gaming law that we will do everything possible to assure that that law is protected and respected."

Senator Addabbo took that pledge to heart when drafting this new law to ban the practice. 

The bill is still in its infancy requiring a lot of deliberation before it's adopted into law. Currently it's in front of the state senate's Racing, Gaming and Wagering Committee for consideration.