We have officially reached decision time for the future of sweepstakes casinos in New York.
After passing the New York Senate and Assembly earlier this year, Senate Bill 5935, which would outlaw online sweeps casinos in the state, has made its way to the desk of Gov. Kathy Hochul. Since the state legislature is out of session at the moment, Hochul has 30 days to do one of three things:
- Sign the bill into law.
- Veto the bill.
- Do nothing, which would act as a “pocket veto” and veto the bill.
SB5935 reached Hochul’s desk on Dec. 1. That means her deadline for activity (or inactivity) is the last day of 2025, Dec. 31.
Dual-currency discretion would belong to New York State Gaming Commission
SB5935 includes some of the most detailed language of all sweeps ban bills — passed or not — during the 2025 legislative session.
Specifically, the bill outlaws:
“Any game, contest, or promotion that is available on the internet and/or accessible on a mobile phone, computer terminal, or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any cash prize, cash award or cash equivalents, or any chance to win any cash prize, cash award or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games, lottery games, bingo, or sports wagering. The state gaming commission shall determine what constitutes a dual-currency system pursuant to this paragraph.”
The last sentence is key, as it gives the New York State Gaming Commission sole discretion over deciding what does and does not constitute a dual-currency gaming model.
When SB5935 and sweeps ban bills in other states refer to the dual-currency model, they’re referring to how sweeps casinos allow their players to play with either Gold Coins or Sweeps Coins. Gold Coins can be purchased but are purely an in-game currency and cannot be redeemed for anything of real-world value. Sweeps Coins, meanwhile, cannot be directly purchased and are acquired via other means, but they can be redeemed for real money once a player accumulates a certain amount.
So, when SB5935 calls out “cash equivalents”, it’s referencing Sweeps Coins.
This means the NYSGC gets to decide if any modified gaming model truly evades the dual-currency classification in the future.
The bill goes even further, specifically covering partners of sweeps operators in this ban as well:
“It shall be unlawful for any applicant, licensed entity, financial institution, payment processor, geolocation provider, gaming content supplier, platform provider, or media affiliate to support the operation, conduct, or promotion of online sweepstakes games within the state of New York.”
Would ClubWPT Gold’s new approach work in NY?
If Hochul signs SB5935, ClubWPT Gold may put that NYSGC discretion to the test.
ClubWPT Gold recently took a new strategic direction by discontinuing its dual-currency setup — Gold Coins and Sweeps Coins — and rebranding itself as a poker education site with a single-currency system.
That currency? Chips. And these Chips are usable for both cash ring games and tournaments, cannot be bought outright, and can be redeemed for real money.
Instead of a second currency, players now purchase Hand Analysis credits, which grant access to poker training tools, and as part of that purchase, they receive complimentary Chips.
While this sounds a lot like players getting free Sweeps Coins with Gold Coin purchases, the change is being framed as a move toward positioning the site as a poker education platform rather than a sweepstakes casino.
Whether this approach will hold up with regulators like those in New York remains to be seen, but the effort to restructure suggests the company likely consulted legal experts who believe this new model could work.
NY would be fifth state to outlaw sweeps casinos in 2025
If Hochul signs SB5935 into law, New York would become the fifth state to formally outlaw sweepstakes casinos in 2025, joining Montana, Connecticut, New Jersey, and California.
Other states, such as Louisiana, Arizona, and most recently Minnesota (and likely Tennessee), have also established themselves as off-limits for sweeps with a heavy presence of cease-and-desist orders.
New York, in fact, has issued more than 20 cease-and-desists to sweeps operators via Attorney General Letitia James. So, even if Hochul does veto SB5935, most reputable sweeps casinos have already left the state — or have at least halted Sweeps Coin gameplay. Still, a legislative ban carries more weight and behaves less like legal whack-a-mole than cease-and-desists.
Interestingly, the author of SB5935, Sen. Joseph Addabbo, seen as the driving force behind iGaming legalization in New York, said in an interview with Sweepsy that he would be open to regulating sweeps operators down the line after real-money online casinos are eventually legalized in New York.
“That’s the opportunity I want to create,” Addabbo told Sweepsy.
One respected industry analyst, however, believes that approach may not work.
Princeton Public Affairs Group partner Bill Pascrell III, an influential gambling industry attorney, lobbyist and advisor, told Sweepsy that bans are too difficult to get past in most cases, even if a lawmaker like Addabbo is open to hearing sweeps operators out on regulation down the line.
“It’s very hard to overturn a ban,” Pascrell said. “It really takes a lot of effort to turn that around, and [operators] better get ahead of themselves and get over this position of not wanting to be regulated, because before you know it, there are going to be more and more states doing it.”
SGLA’s efforts in New York
The Social Gaming Leadership Alliance created a campaign to rally New York players to ask Hochul to veto SB5935, and it’s currently pushing for a sales-tax framework to regulate sweeps casinos in various states, including New York, Florida, and Massachusetts.
In a statement to Sweepsy, SGLA Managing Director Sean Ostrow called SB5935 “unnecessary, overbroad, and counterproductive.”
“New York stands at a critical juncture in determining how to approach online social games with sweepstakes promotions, or Social Plus games,” Ostrow told Sweepsy on Tuesday night. “This form of digital entertainment — enjoyed by millions of New Yorkers — represents a thriving economic sector that supports local businesses and the broader New York economy, while offering significant taxation and revenue opportunities for the state. Research shows Social Plus games contributed more than $230 million to New York’s economy in 2024 and that the state could generate more than $80 million annually in revenue from taxation and licensing frameworks, while polling shows Americans overwhelmingly support this approach as opposed to bans that impinge upon their freedoms.
“We urge Governor Hochul to veto S.5935-A / A.6745-A, which is unnecessary, overbroad, and counterproductive. The SGLA stands committed to work with the Governor, Legislators, and Attorney General to find a constructive regulatory approach that will protect consumers and establish New York as a leader in digital innovation.”
