With mere hours remaining in the 2025 regular session for the New York General Assembly, the New York Senate approved a bill that could place new restrictions on sweepstake casinos. Sen. Joseph Addabbo’s S5935 is now with the Assembly ahead of the June 12 adjournment.
The bill differs from an Assembly version that has not come up for a vote on the Assembly floor, thanks to amendments from Senate committees. While the Assembly may not approve S5935 before adjournment for 2025, that does not mean the bill will not see future debate.
Senate forwards S5935 to Assembly
On June 11, the New York Senate voted to approve S5935 by a 57-2 margin with four abstentions. The bill and its amendments could be taken up by the Assembly before adjournment, although the short time remaining casts doubt on that circumstance.
S5935, as it passed the Senate, targets any “online sweepstakes game” that “utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize” while simulating “casino-style gaming.” S5935 makes it “unlawful…to operate…sweepstakes games” in New York.
The prohibitions also apply to companies providing services to the operators of such games like geolocation providers, payment processors, and software developers. Fines for violations could be as much as $100,000 while people convicted of associated charges would become ineligible for gaming licenses.
Even if S5935 fails to receive approval from the Assembly before adjournment, bills carry over from odd-numbered years to even-numbered years in New York. That is not a guarantee that the Assembly will take up the bill in the 2026 session, though.
Events along these lines might make doing so somewhat unnecessary.
Diminished prominence of sweepstakes casinos in New York
Whether due to the emergence of S5935 and its Assembly companion, A6745, actions by New York Atty. Gen. Letitia James, or a combination of the two, many operators of sweepstakes gaming sites have already stopped serving players in New York. On June 6, James announced that her office took action, resulting in the exit of 26 different platforms from New York.
That list includes prominent brands like Chumba Casino, Funzpoints, Global Poker, and McLuck. Enshrinement of S5935 could prompt more departures of any remaining operators and act as a deterrent to any new sites taking their place. That is why companies offering such games will probably continue to oppose S5935 and/or similar legislation even if they have already stopped doing business in New York.
Sweepstakes operators get time to lobby
Barring last-minute approval of S5935 by the Assembly and a signature from New York Gov. Kathy Hochul, further conversations in Albany on the bill won’t take place in a formal setting for months. That gives groups like the Social & Promotional Games Association and the Social Gaming Leadership Association time to bend legislators’ ears.
Both organizations have already criticized S5935, characterizing the bill as an overreach that incorrectly categorizes sweepstakes games that resemble casino gaming. Even though many of the members of these organizations have already exited New York, advocating against S5935 could be more about preventing such statutes from becoming widespread throughout the United States.
Montana has already enacted similar legislation, and the Louisiana legislature approved a bill to the same end. Similar proposals have surfaced in many other states, receiving varying levels of support.
Trade organizations’ efforts to stymie S5935’s progress may see a level of success, albeit potentially temporary, if the 2025 session ends in Albany without the Assembly taking up the bill. Time is currently running short for the Assembly to do so.
