New York Latest to Ban Dual-Currency Sweepstakes Gaming
By Robert Linnehan in Sports Betting News
Published:
- New York Gov. Kathy Hochul (D) last night signed a bill into law to ban dual-currency sweepstakes gaming
- Sen. Joseph P. Addabbo Jr. (D-15) introduced S5935A in March
- The bill prohibits dual-currency online sweepstakes games and revenue from illegal gaming markets
New York will no longer allow dual-currency sweepstakes games, as the Empire State is the latest to ban the form of gaming.
Gov. Kathy Hochul (D) last night signed S5935A into law, a bill to prohibit dual-currency online sweepstakes games and revenue from illegal gaming markets. Sen. Joseph P. Addabbo Jr. introduced the legislation in March.
New York is the sixth state to ban dual-currency sweepstakes games through a piece of legislation.
Prohibits Games that Mirror Casino Gaming
The approved legislation specifically targets dual-currency sweepstakes games that mirror casino-style games and sports betting. It also prohibits gaming operators or affiliates from offering or accepting revenue from the prohibited games.
Addabbo Jr.’s bill provides the following definition of a prohibited online sweepstakes game:
“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 prize, award, cash or cash equivalents, or any chance to win any price, award, cash or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, table games including but not limited to blackjack, roulette, craps, and poker, lottery games including but not limited to draw games, instant win games, keno, and bingo, and sports wagering.”
The bill breezed through votes in both the Senate and Assembly with little objection.
Sweepstakes games that do not award cash prizes or cash equivalents will not be prohibited under the law.
The bill sets fines of a minimum of $10,000 or a maximum of $100,000 for an operator or affiliate offering a sweepstakes casino game in the state, or accepting revenues from a sweepstakes casino company.
Sweepstakes Operators Already Leaving New York
Following Hochul signing the bill, several popular sweepstakes operators announced to New York customers that their services were no longer available in the state.
Both Novig and ProphetX last night sent emails to New York customers informing them of the legislative change. Both announcements informed customers that the operators’ services were no longer legal in New York.
“ProphetX will no longer be available in New York due to a change in New York sweepstakes law. You can still make plays and redeem prizes in other states where the app is available. If you are located in New York and can no longer use ProphetX, please make sure to make a redemption,” the ProphetX notification informed New York customers.
Novig sent a similar notification to New York customers as well.
Latest State to Prohibit Dual-Currency Sweepstakes Games
New York is the latest state to approve legislation to ban the games. It joined New Jersey, California, Connecticut, Montana, and Nevada to pass bills to prohibit the games.
Maine is also considering a ban, as Sen. Craig Hickman (D-14) this week introduced SP 825, a bill to prohibit online sweepstakes games that utilize dual-currency systems or simulate casino gaming.
California Gov. Gavin Newsom (D) signed legislation in October to ban the games in the Golden State. He signed Assemblymember Avelino Valencia’s (D-68) bill, AB 831, to prohibit dual-currency sweepstakes contests resembling casino and sports betting games.
The bill will go into effect on Thursday, Jan. 1, 2026.
Valencia’s bill, originally dealing with tribal state gaming compacts, was overhauled in late June to make it unlawful for any person or entity to operate, conduct, or promote a dual-currency online sweepstakes game that mimics casino games or sports betting.
The bill officially sets fines and punishments for those who offer the games.
“The bill would make a person who violates these provisions guilty of a misdemeanor punishable by a fine not less than $1,000 nor more than $25,000, or by imprisonment in the county jail not exceeding one year, or by both the fine and imprisonment,” according to the legislation.
Regulatory Writer and Editor
Robert Linnehan covers all regulatory developments in online gambling and sports betting. He specializes in U.S. sports betting news along with casino regulation news as one of the most trusted sources in the country.
