Queens, NY (December 8, 2025) - NYS Senator Joseph P. Addabbo, Jr., Chair of the Senate’s Racing, Gaming, and Wagering Committee, announced that his bill (S.5935A) was signed into law (Chapter 605), officially banning illegal dual-currency online sweepstakes casinos in New York. The measure represents a major step in protecting consumers and ensuring that any state authorized gaming activity available to New Yorkers meets the highest standards of safety, transparency, and regulatory oversight.

With the enactment of the new law, it is now prohibited to operate, promote, or profit from online sweepstakes casino-style games that use dual currencies and offer players the chance to win cash or cash-equivalent prizes, since such online activity is not currently authorized by New York State. Sweepstakes casinos mimic online casino gambling without any of the state’s strict safeguards. These unregulated, illegal platforms have proliferated in recent years, putting New Yorkers at risk with no consumer protections, no responsible-gaming requirements, and no oversight from the New York State Gaming Commission.

“If a game on your phone or computer looks like a casino game, acts like a casino game, and pays out real money winnings like a casino game, then it is a casino gambling game, thus currently illegal and should not operate in New York without proper regulation, safeguards, and accountability,” said Addabbo. “This law makes it clear: these unregulated sweepstakes casinos were not only unsafe, but they were operating illegally.”

Signing Addabbo’s legislation into law empowers both the New York State Gaming Commission and the Attorney General to take action against individuals or businesses profiting from prohibited Sweepstakes gaming. Regulators will now have clear authority to shut down operations and issue fines ranging from $10,000 to $100,000 per violation, with additional consequences for anyone holding or seeking a state gaming license. Sweepstakes-style games that do not offer cash-redeemable rewards are unaffected.

“New York has long taken a serious, responsible approach to gaming,” Addabbo continued. “These unauthorized sweepstakes sites lack safeguards, such as age verification, betting limits, problem-gambling support, and oversight of payouts or fairness. This law closes a dangerous loophole and protects millions of New Yorkers from predatory, unregulated gambling schemes.”

Several operators immediately ceased service to New Yorkers after the signing of Addabbo’s bill, underscoring the clear and decisive scope of the legislation. New York now joins states such as New Jersey, California, Connecticut, Montana, and Nevada, which have already enacted similar bans.

“Signing my bill into law is not the end of the conversation, but rather a necessary step toward responsible modernization of New York’s online gaming landscape,” stated Addabbo. “By shutting down unsafe, unregulated sweepstakes casinos, New York is reaffirming that if online gaming is going to exist in this state, it must be legal, well-regulated, and built with strong consumer protections. With downstate casino licensing progressing and the illegal sweepstakes loophole now closed, the state is better positioned to hold serious discussions about regulating and potentially legalizing iGaming in the near future, possibly as part of the upcoming budget process. My priority is to ensure safety, prevent problem gambling, generate much needed, significant revenue, and keep New York competitive with surrounding states,” Addabbo concluded.

This new law protects New Yorkers today, and it may also serve as a precursor to the thoughtful, comprehensive regulation of online gaming tomorrow.