The online sweepstakes casino industry has come under unprecedented fire in 2025, with more and more state lawmakers introducing bills that essentially define sweeps operators as operating illegal gambling.
New York has seen bills in both the Senate and Assembly move through their respective committees, but an amendment has emerged within the Senate, and it’s believed to be the first of its kind.
Senate Bill 5935, introduced by Sen. Joseph Addabbo Jr., advanced to a third reading on the Senate floor Wednesday — with one tweak.
According to the amendment, the New York State Gaming Commission (NYSGC) would be trusted with determining what exactly is “dual-currency system.”
Amendment is likely response to claims bill would hurt other regulated businesses
Addabbo first introduced his bill in early March, which aims to prohibit “operating, conducting, or promoting certain online sweepstakes games or supporting the operation, conduct, or promotion of such games.”
The senator justified the legislation by noting that online sweepstakes casinos “evade consumer protection, responsible gaming, and anti-money laundering requirements to which gambling in New York is otherwise subject.”
Within the proposal, Addabbo defined sweeps games as any contest simulating a casino-style game “that utilizes a dual-currency system of payment” that allows players to exchange any currency for any prize, award, cash or cash equivalents.”
At the time, the Social and Promotional Games Association (SPGA) attacked the bill, emphasizing that the legislation “recklessly mischaracterizes” sweepstakes gaming. As such, it would threaten “legitimate businesses,” such as fast-food chains, app developers and hotel companies.
The latest amendment to S5935 may, then, reflect concerns regarding potential unintended consequences — giving the NYSGC the authority to determine what does and doesn’t constitute a dual-currency system under this bill.
SPGA: Amendment ‘doesn’t fix anything’
In the initial proposal, S5935 simply noted that any operators using a dual-currency system — such as the Gold Coins and Sweeps Coins most online sweepstakes operators offer — would violate state law and carry fines ranging upward of $100,000.
Now, though, lawmakers would place the onus on the NYSGC in determining what constitutes a dual-currency system.
“This amendment is a clear acknowledgment that this anti-business bill needlessly threatens New York’s economy,” a spokesperson for SPGA said in a statement. “But this amendment doesn’t fix anything. It’s a political patch meant to quiet critics without solving the underlying problem.”
The SPGA added that passing the responsibility on to the NYSGC “simply punts the problem” to the state gaming commission. Such an “ill-conceived pivot” only deepens the risk for mobile gaming operators, marketing platforms and loyalty systems.
“Lawmakers wouldn’t be amending the bill if it didn’t need amending,” the SPGA spokesperson said. “New York legislators are publicly admitting the bill was flawed, and other states like Louisiana should take note before making the same mistake.
“This was already bad legislation. Lawmakers have taken a mess and made it into a catastrophe.”
What sweeps bill amendment represents
At the time of its first introduction, S5935 represented a relative first for state bills targeting online sweepstakes casinos. The more-distinct definition of sweepstakes gaming — casino-like games combined with the dual-currency system — was arguably the most specific bill attempting to ban sweeps gaming.
While one could argue that would make the bill more likely to progress, it obviously created (potentially) more problems, which the SPGA has focused on in each statement responding to online sweepstakes ban bills.
As previously noted, the SPGA has focused on the perceived collateral damage a sweeps ban would have on “legitimate” businesses, like McDonald’s with its Monopoly game or Marriott with its loyalty program. (The sponsor of Louisiana’s sweeps ban bill denied his legislation would do that in a hearing last week.)
It could also reflect a disconnect between lawmakers and sweepstakes operators. The SPGA has continually urged legislators to work with sweeps operators to develop a well-rounded regulatory framework. Perhaps if the amendment to Addabbo’s bill included a clearer definition of dual-currency system or to sweepstakes gaming — or pulling the bill entirely — it would indicate the two sides opening a dialogue.
None of those scenarios occurred, however. The Senate simply pushes the buck onto state gaming regulators.
