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New York sweepstakes casinos & the law in 2026

If you’re a player in New York, you lost access to sweepstakes casinos last December. Governor Hochul signed the ban on December 5, and within hours, operators had geo-blocked the state, leaving players with a single window to redeem any remaining Sweeps Coins balance before the shutdown took hold.

Below, we provide an overview of the bill, explain what the ban means for you as a player, and detail legal alternatives you have.

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Jovan I.

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Last updated

15 June 2026

Are sweepstakes casinos legal in New York?

You can’t sign up to a sweepstakes casino site from New York anymore. The state closed the market in two steps in 2025. First, AG Letitia James sent cease-and-desist letters to 26 operators in spring 2025, and most complied within weeks. Then, Governor Kathy Hochul signed S5935-A on December 5, 2025, codifying the ban into law. By the time the statute took effect, no major sweepstakes brand was still serving New York.

Below, we walk you through the law and what’s left for you as a player.

Legal overview

Are sweepstakes casinos illegal in New York? Yes. New York’s sweepstakes ban (S5935-A / Chapter 605, Laws of 2025) took effect December 5, 2025.
What did the state do before the ban? AG Letitia James sent cease-and-desist letters to 26 sweepstakes operators in spring 2025. Most completed within weeks, before the law was signed.
What does the new law say? S5935-A prohibits dual-currency sweepstakes platforms in New York. The bill was sponsored by Sen. Joseph P. Addabbo Jr. and signed by Governor Kathy Hochul on December 5, 2025.
What’s the penalty? $10,000 to $100,000 per violation, plus license revocation for any licensed gaming entity. The penalty applies to operators, not individual players.
Which operators have left? All major brands. 
What about free social casinos (Gold Coins only)? Social casinos (one-currency models) can still operate in New York. The ban targets the dual-currency model, where Sweeps Coins are redeemable for prizes.
What else can I legally play in New York? Four upstate commercial casinos, tribal casinos, the New York State Lottery, online sports betting (since 2022), and parimutuel horse racing. No online casinos.

What the ban means for you

Player risk No criminal liability as a player. S5935-A imposes civil fines and license revocation on operators.
Platform access Operators dropped New York access on December 5, 2025, the day Gov. Hochul signed S5935-A. The immediate effective date gave existing players only enough time to log in once more and redeem whatever Sweeps Coin balance they had on hand.
VPN use Spoofing your location with a VPN doesn’t change your legal status. Enforcement is based on where you actually are, not what your IP reports. Operators also flag VPN traffic and close accounts on detection.
Tax on past winnings Past winnings stay on the federal tax hook regardless of where the state ends up. Report as gambling income on Schedule 1.

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New York vs. neighboring states

Compare New York’s stance on sweepstakes casinos with those of its neighboring states.

FAQs

Why did sweepstakes casinos leave New York before the ban was even law?

Because the Attorney General did not wait for a law to act. In spring 2025, Letitia James sent cease and desist letters to 26 operators at once. Most read the warning and pulled out within weeks, well before any bill was signed. The threat of enforcement was simply cheaper to obey than to fight in court. So, New York’s market emptied on the strength of letters, and the statute only made the exit permanent.

If the operators already left, why did New York bother passing a sweepstakes law?

Because a voluntary exit can always be reversed. The letters worked, but nothing stopped a company from quietly slipping back in later. S5935-A removes that option by writing the ban into permanent law. It also adds real teeth, with fines reaching $100,000 per violation and license revocation on top. So the statute did not empty the market, it bolted the door the letters had already closed.

Could sweepstakes casinos ever come back to New York?

Only if the Legislature reverses itself, which is a long shot. S5935-A is permanent law now, not a temporary order, so undoing it would take a fresh bill. New York shows no appetite for that, having just gone to the trouble of passing the ban. It has not even legalized online casinos, so there is no friendlier mood waiting in the wings. So, a return is possible on paper, but nothing on the ground points towards it.

Sources

A note on legal advice

This page is for general information only and does not constitute legal advice. S5935-A is actively enforced by the New York State Gaming Commission and the Attorney General’s Office, with civil penalties of $10,000 to $100,000 per violation targeting operators and supporting businesses. If you have specific concerns about your account, balance, or legal exposure, talk to a licensed attorney in New York.

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About the Author

Jovan I.

Content Writer

Jovan Ilić describes himself as a man of simple tastes. He likes his deals transparent and well-defined, and his coffee thick, black and strong enough to kill a bear. Once he’s completed his morning coffee ritual, he turns into a terrific guy and a hell of a negotiator. He writes with great passion and even greater rigour, painstakingly shaping each sentence to deliver both clarity and impact. (Jovan has been a writer for SweepCasinos since June 2024).
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