On Friday, December 5, 2025, New York Governor Kathy Hochul signed S05935A into law, prohibiting online sweepstakes casino games.
Originally sponsored by New York State Senator Joseph P. Addabbo Jr. (D) in March 2025, Bill No. S05935A was referred to the Racing, Gaming and Wagering Committee (chaired by Addabbo) on March 4.
On March 11, Bill No. A06745A (the same as S05935A), sponsored by New York State Rep. Carrie Woerner (D), was also referred to Racing and Wagering by the New York State Assembly.
State legislators in New York acted quickly, as S05935A passed the Senate on June 11. Less than a week later, on June 17, the bill unanimously passed with a State Assembly floor vote, 141-0.
However, the bill that passed both chambers of the New York State Legislature wasn’t delivered to the governor’s desk until December 1.
New York Attorney General Letitia James: 26 cease-and-desist letters issued against sweepstakes casinos in 2025
New York’s ban on sweepstakes casinos was also initiated by State Attorney General Letitia James. On March 7, James issued a cease-and-desist letter to virtual casinos (otherwise known as sweepstakes casinos) in violation of the New York State Constitution.
The letter stated that, per state law, New York classifies gambling as:
“A person engages in gambling when he stakes or risks something of value upon the outcome of a contest of chance or a future contingent event not under his control or influence, upon an agreement or understanding that he will receive something of value in the event of a certain outcome.”
James identified the purchase of “virtual coins” in exchange for “something of value” as the main argument for why sweeps casinos were in violation of the law in New York state.
As a follow-up to her cease-and-desist letter in March, in partnership with the New York State Gaming Commission, James issued cease-and-desist letters in June to 26 illegal online sweepstakes casinos. Some of those brands included:
ChancedChumba CasinoHigh 5 CasinoLuckyland SlotsZula Casino
In August 2025, Virtual Gaming Worlds (VGW), a top social gaming company, exited New York via its sweepstakes casino subsidiaries, Chumba Casino, LuckyLand Slots, and Global Poker.
Sweeps casino bans in 2025
New York’s ban on sweepstakes casinos reflects a growing industry trend. As the sixth state to ban sweeps casino operators in 2025, New York followed in the wake of these states:
Connecticut (June)Nevada (June)New Jersey (August)Montana (signed in May – effective Oct. 2025)California (signed in October – effective Jan. 2026)
Note: Michigan banned sweepstakes casinos in 2024. Other states, like Louisiana, Washington and West Virginia have passed legislation to outlaw sweeps casino gaming. Maine and Florida could be next.
Social Gaming Leadership Alliance (SGLA) response
In response to Gov. Kath Kochul’s signature of S05935A, the Social Gaming Leadership Alliance (SGLA) condemned New York’s ban on sweepstakes casinos.
The SGLA claimed the ban would remove “…access to safe, fun digital entertainment and eliminating hundreds of millions of dollars in annual economic contributions.”
They also stated that the ban “…had no industry consultation, mischaracterizes lawful sweepstakes promotions, and restricts economic and innovation opportunities in the state.”
The SGLA also pointed to a September study by Eilers & Krejcik, a California-based consulting firm.
In the “Impact Of Social Casinos With Sweepstakes In New York” report, commissioned by the SGLA, the authors found that social casino games contributed more than $230 million to New York’s economy last year.
They estimated that sales from sweepstakes casinos in the Empire State generated $762 million in 2024.
On December 5, 2025, any chance of a potential veto was nullified by Gov. Kathy Hochul’s signature of S05935A, formally banning sweepstakes casinos in New York.
To learn more about where they’re still legal, you can read my analysis of the top sweepstakes casinos in December.
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